Underwriting forms the core of the initial policy. The policy is then managed throughout its life cycle, using a policy administration. A policy administration can contain a large number of policies, containing many products that require a high frequency of policy changes. This especially applies to the private property and personal casualty business lines, where live events often lead to a change in one or more policies. Events may be childbirth, marriage, divorce, moving house, etc. Private vehicle ownership leads to a large number of car insurance policies, where events like changing cars contribute to the total number of policy changes.
Automation of work processes in policy administration has always been of great importance, simply because of the frequency and sheer number of events, initially at insurance companies and broker offices internally, and nowadays also in the customer environment through the use of apps.
Viewed apart from the technology, the basic principles are still the same; a new policy is created by underwriting, mid-term changes are made at customer request, renewal takes place at steady intervals, and at some point the policy is terminated. Each step signifies the processing of policy data. For operational and strategic purposes, reading access to policy data is also required.
There are different variations of a policy, each with their own characteristics and rules. These are outlined in the section Policy types and guidelines, followed by the basic functions and their respective variants.