How Insurers use Technology to Provide Quotes

Insurance companies use various technologies to provide an insured with a rate or price quote. An insurance company may use various types of computer software, the internet as well as e-mail to create and send a quote. Technologies are always evolving and what is standard today may be outdated in the future.

Insurance companies use various technologies to produce a rate or price quote. One way in which they produce a quote is to use computer software. Computer software can be created in-house or it can be outsourced from a third party. Third party rating software is available from companies such as ACS and Capital. Insurance companies that are large enough and have a dedicated programming department can develop their own rating software. They then provide this software to the various insurance agents that write business with them. Usually computer software contracted from a third party is used by more than one insurer and needs to be modified for each company.

Another way that insurance companies use technology to produce a rate or price quote is to make it available on the internet. Most insurance companies are now utilizing the internet as a way of producing a quote. Depending on the insurer an online system can either be available exclusively to agents or open to the policyholder. Insurers that have an exclusive system are those that only use wither captive or independent agents to write and submit policies. The internet is a good way to provide access to a rate or price quote because the information is entered in real time and a result is displayed immediately.

Insurance companies as well as insurance agents are also using e-mail to send a rate or price quote to an insured. The use of e-mail is a quick and easy way to send information between an agent, an insurer and the policy holder or insured. Usually an insured will go to the web site for the agent or the insurance company and enter some basic information into a web form..The web form is then sent to someone in the office to generate a rate or price quote which is then e-mailed back to the policyholder or insured. If the insured likes what they see they can then contact the agent or insurance company to purchase the policy.

The use of technology is constantly evolving and changing. This means that as older technologies get outdated they are replaced by newer technologies. Today, the use of the internet to communicate with an agent or insurance company has virtually replaced the need to use regular postal mail.