As the demands for e-delivery, personalized customer service and document flexibility increase, so does the appeal of customer communication management (CCM), according to a new report from Strategy Meets Action.

About 75 percent of insurers reported using both policy administration systems (PAS) to generate policy, renewal and endorsement documents, notes the report, while the other quarter reported using CCM systems as well as PAS systems.

The report outlines several advantages to sticking with document management systems within a PAS system. For example, this can provide many conveniences from residing in a system that offers a holistic view of a product’s lifecycle. This means variable data is readily available and configurations can take place within the same system. Many companies also retain heavily used ISO rates, rules and forms stored in legacy systems and do not require much customization. In this situation, particularly if a company is trying to keep implementation and maintenance costs low, a CCM is not a necessity.

However, this approach drastically limits IT and delivery capabilities.

“When there is a need to deliver a high level of personalized customer service or the competition is rapidly raising the bar for customer experience excellence, then a CCM solution has a better chance,” reads the report. “CCM systems are a must when the e-delivery requirements and customer style and delivery preferences exceed the capabilities of what a PAS system (legacy or modern) can deliver.”

Many attributes associated with consumer-centricity are represented by CCM systems. According to the report, consistent branding and the tracking and managing of all customer communications are benefits when engaging the robust technologies used by CCM providers. These systems also allow companies to reach consumers where and how they want to be reached.

Implementation and full integration can be complex and time-consuming, the report adds, making CCM systems a tougher commitment. The report concludes that for every insurer there are different levels of needs and risks involved in investing in CCM technology, however SMA did add that linking or conjoining the systems may prove most beneficial if a company can leverage the strengths of each.

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