Why Billing Matters

I have a homeowners policy with the DoNotDisclose Insurance Company. DoNotDisclose is a large, primarily personal lines company.


My policy term ends on Oct 8 every year.  This past August, I received the dec page and invoice for the new year, and paid it in full online.  I mean, I thought I paid it in full. Today I discovered that whatever I did, did not result in a payment being made.


I’ve been away from home for a few days. Opening my mail today (October 21) I had a letter from DoNotDisclose telling me that my homeowners policy expired on October 8 due to non-payment of premium.  The letter was post-marked October 16.  Between my initial invoice in August and my Expiration Notice, I had received the following communications from DoNotDisclose: zilch, nada, and rien,


Looking at the letter telling me my largest single investment had been uninsured for the past two weeks literally made me queasy.


Does anyone know a good personal lines company that understands the relationship among billing technology, billing processes, communication, and customer experience?

SaaS Activity in 2010 Insurance Software Deals

Every year, Celent conducts a survey of software providers which details the activity in the insurance automation market (http://www.celent.com/reports/north-american-insurance-software-deal-trends-2011-lifehealthannuity-edition and http://www.celent.com/reports/north-american-insurance-software-deal-trends-2011-propertycasualty-edition). The latest snapshot showed a 14% growth in SaaS across all categories. This increase was expected based on conversations we had last year with both insurers and vendors. It was good to get some numbers that defined the level of activity in this area. What was surprising was that billing was one of the leaders in the move to SaaS in terms of percentage of deals. Thirty percent of the reported insurance billing systems sold in 2010 were delivered through some type of hosted solution. This demonstrates both the desire of companies to upgrade their billing service and reduce the cost involved in delivering these new capabilities. Look for increased activity in this area in 2011.

The Promise of End User Maintenance – Billing Systems

Continuing the series on end user involvement in system changes, we asked reference accounts how involved business staff is in maintaining billing systems. As shown in the graph below, a great majority of them only barely or moderately have moved these activities into business areas. In conversation with vendors and insurers, most often these tasks involve creating and modifying bill plans. Note that our research does not ask how much an insurer wants to move to the business areas. In the case of billing and financial transactions, and unlike policy and rating administration, this relatively low level may be desired for control reasons.