Policy Administration Systems: Negotiating The Web Of Confusion

Beware of Web applications that aren't actually written in a Web-generation language. Web-generation languages include languages originally designed for the Internet or that have the Internet as a key focus. The three predominant Web-generation languages are Microsoft's .NET, Sun's Java, and the PHP open source solution. Systems written in other languages generally require more work to utilize Web features and are less efficient doing so. Even more importantly, hiring talented individuals experienced in outmoded languages is becoming more difficult and more expensive.

Does the solution have a user interface designed for the Web? Does it behave like a Web site?

Web applications that have tried only to translate the user interface of an old Windows or mainframe interface are forgoing some key advantages of a Web-based user interface. Factors including training costs, customer acquisition, customer service and agent efficiency depend on leveraging the general understanding and ease of use of the Web. Simply replicating the old, obscure user interfaces and inefficient methods inside a browser can mitigate or even eliminate those benefits.

Can the solution support multiple distribution channels?

A critical new demand is for policyholders, agents, customer service reps, and others to have access to similar tools and information. If an application can't leverage common business logic across all channels, a key benefit is lost. Similarly, it is invaluable for the solution to support differing user interfaces for a single process flow. For example, customers should have a purchasing experience that makes sense to them, while agents should have the screen configuration that's most efficient for their needs–and both should be possible with a single system without duplication of rules, logic, or code.

Does the solution use Web-age scalability techniques?

The advent of companies such as Yahoo!, eBay, Google and others has led to a change in the way computer systems scale. These companies have developed techniques to eliminate practically many of scaling challenges for all but the most enormous undertakings. A Web-based insurance system should ideally take advantage of these proven methods, allowing cost-efficient linear scaling across a virtually unlimited number of servers.

Is the solution a real-time application?

Scaling techniques can, in turn, help empower another key expectation of modern users–that everything occurs in real time. If a customer makes a payment or endorsement or files a claim online, the transaction should be reflected immediately. This affords every agent, customer service rep or claims adjuster immediate access to up-to-date information.

Is every user interface to the system Web-based?

Systems claiming to be "Web-based" often rely on a traditional GUI (graphical user interface) desktop application. Unlike GUI desktop applications, true Web applications inherently are centralized–hosted anywhere and accessed from anywhere, with virtually no discernable difference to the business. Also, Web applications can be maintained in one place, with no redeployment of client software.

The Internet is living up to its promise to be the transformative technology of our time. Companies taking full advantage of Internet-age solutions will have a distinct competitive advantage, not just in distribution and customer satisfaction, but virtually every aspect of their businesses. Reaching that goal depends on the ability to separate accurately the hype from the facts and make the right technology choices.

Max Drucker is managing partner with Steel Card, LLC in Santa Barbara, Calif. He can be reached at [email protected].