Policy administration in insurance refers to the management of policies from creation to termination. This includes activities such as policy issuance, premium collection, policy changes, and claims processing. It involves ensuring that the policies comply with regulatory requirements, underwriting guidelines, and contractual agreements.
Policy administration systems are used by insurers to automate their processes and improve efficiency. These systems allow insurance companies to provide faster service to their customers, reduce errors, and improve profitability. Effective policy administration is a critical component of successful insurance operations as it impacts customer satisfaction and affects the overall business performance.