I have to start by asking: What's so difficult about group billing?

That's a big question. In this article I'd like to discuss how and why billing — and in particular, group billing — is an overlooked opportunity for creating efficiencies at carriers. There's a vast difference in how up-to-date and relevant insurance company billing systems are for group benefits versus individual insurance. Simply stated, group billing is way behind where it should be.

It's true that billing is the ignored stepchild compared to the golden child of policy administration. Let's be real, billing is just not as sexy as writing new business. Carriers are focused on getting new business in the door; they aren't necessarily thinking of the intricacies of billing clients down the line. However, agents have a lot at stake when it comes to downstream billing and claims, as this can impact commissions and bonuses related to claims ratios. So in terms of overall agent engagement and satisfaction, it's a critical application. Without accurate and timely billing, insurers and agents don't get paid and customer communication falls off. So the fact that billing has become kind of an afterthought in many insurance companies' automation is really a missed opportunity to provide a superior level of service to agents and their large government or corporate customers.