Insurance Accounting Software Buyers Guide
Last updated: June 07, 2023
The insurance industry is a complex world of continuously handling claims from customers, following up on potential customers and managing policies in between. A lot can get lost in between juggling the different activities and trying to analyze your firm's financial future.
It doesn’t have to be a labyrinth of instability. Insurance accounting software can help you perform all the important accounting activities in one cohesive system. There’s no need for you to have different software solutions to manage your payroll, do budgeting and tend to accounts receivable. It should all seamlessly integrate into one system.
We've compiled this buyer's guide to help you focus on the key functionalities a software solution can offer. We’ll cover the most important features to look out for, the benefits of insurance accounting software as well as the cost you should make provision for. It’s all geared towards guiding you in making an informed decision.
The Main Features of Insurance Accounting Software
Insurance accounting usually includes primary modules such as CRM and billing features as standard across all systems. Other important features that should be included are:
- Basic accounting: To keep your company's books in order functionalities such as the general ledger must be included. Your software should track accounts payable and accounts receivable. It must also manage your bank reconciliation statement and fixed assets on the balance sheet.
- Integration: The ability to integrate is chief among the features that should be included. Advanced systems seamlessly assimilate your accounting software with other insurance functionalities and features.
- Document control: Effective document control is important for insurance companies because you deal with all kinds of documents daily. To increase efficiencies around document management your software solution should assist with document creation. It should also provide advanced viewing and multi-lingual translations.
- Workflow: The customer’s journey in the insurance landscape can be long-winding. Insurance software should track your customer from the lead stage right through to policy creation. It should continue to lend support when you’re billing customers, changing the policy or processing a claim.
- Claims management: To increase your efficiency around workflow processes most insurance software solutions include online support when customers initiate a claim. It will also track irregularities and any fraudulent activities.
- Auditing: Your software should eliminate the need for a paper trail which has always been crucial during an audit. All your receipts and requests are managed electronically & copies saved online. It makes for faster reporting and more reliable data during auditing.
Two Ways of Implementing Insurance Accounting Software
There are two trusted ways of deploying software in your organization. You can either opt for on-premise implementation or software as a service (SaaS). Whichever method you pick should be based on your company’s requirements.
This implementation method allows you to install the software directly onto your servers and computers locally. The information is not available remotely and can only be accessed locally. It’s deemed a safer way to handle data but doesn’t provide the flexibility to access data anywhere, anytime.
Software as a Service (SaaS)
This method is often called cloud-based or web-based software. This is the exact opposite of on-premise deployment as activation is done remotely from the software vendor’s servers. You can access the system remotely and it doesn’t require additional IT infrastructure to set up.
The Benefits of Insurance Accounting Software
Users of insurance accounting software have been praising the far-reaching benefits of implementing this software solution. Some of the most noteworthy benefits are:
- It significantly improves productivity as staff focus more on building better customer relations instead of focusing on redundant tasks
- You gain better insight into your company’s finances
- It allows for more precise budgeting as reporting becomes easier and updates are done faster
- Cloud-based users enjoy accessing data remotely and can implement policy changes immediately
- Sophisticated reporting allows you to drill down on every line item on the financial statements
Important Considerations to Reflect on
Before you make your final decision on purchasing insurance accounting software for your company it’s important to reflect on these key questions. Answer this critically:
- Is the software able to handle several carrier brands and various payers?
- Can it individually support the examining of data?
- What technical support is provided and does it come at a fee?
- Does the software solution support billing features and scheduling?
These questions are posed to make you interrogate the total capabilities of any software solution. It’s also prudent to enquire whether your software vendor will be providing training sessions and how many sessions would be free. The software might look easy to navigate during the demo session but you may find that once implemented in practice it can be quite challenging to navigate.
The Cost of Insurance Accounting Software
Determining the total cost of software solutions isn’t always easy. Most software vendors prefer you contact them for a quote so they can customize the package according to your requirements. The cost is also dependent on the number of features you want to be included and the number of users.
There's also the option of a monthly subscription fee or perpetual license fee that allows you to pay a lump sum up front and a small fee monthly for ongoing support. Some insurance software solutions start with a basic price of $10 monthly per user and others can start at $100 monthly. It all depends on how much you need from the software solution.
There’s no need to get all tangled up in the complex demands of the insurance industry. Especially not when it comes to the accounting function. Software solutions are designed to help you focus on growing your business instead of spending time on repetitive tasks.
Insurance accounting software automates repetitive tasks and protects the integrity of your information. It enhances the customer's experience by providing online support during the initiation of a claim.
Can you afford not to invest in a software solution that’ll help you gain a better return on investment? Contact a software vendor today and enjoy the manifold benefits of a trusted software solution.