Policy administration

Policy administration explained

Once a policy is sold it has to be looked after for years. Policy administration covers issuing the policy document, billing and recording premiums, processing endorsements, handling lapses and reinstatements, calculating surrender and paid-up values, paying claims and closing the policy at maturity.

Policy administration systems are the software insurers use to do this. In a modern setup they are linked to sales, underwriting, finance and customer channels so information entered once is used everywhere.

Why it matters in life insurance

Long-term policies mean Zambian life insurers administer contracts for decades, often through changes of staff and systems, so a reliable policy record is essential. Policy administration is the core of Ontech LifeI ERP, with claims, finance, CRM and customer channels built around the same policy record.

Related terms

Policy endorsement · Policy lapse · Surrender value · Premium collection