Over the last decades, there have been many advances in the financial service sector that include banking, insurance, healthcare, capital markets, and more. For leading to market success this sector has built a business model after going through lots of strategic changes and development. This era is dedicated to customer-centric approaches and every industry is following that. For the insurance industry, Oracle Revenue and MB helps to shift from one-product to multiple products through a multiple-channel strategy in an easier way. This shift can welcome the possibilities of mixing billing processes and systems that can be designed in a well-thought manner.

Being in the Insurance Industry, Do you face these Challenges in Pricing and Billing Aspects?

• A complicated relationship in the business distribution
• Tieing up and cross-selling multiple insurance products
• Inability to adapt to advancements in technology because of legacy system
• Implementing changes in a configured system becomes time-consuming and expensive.

What does ORMB stand for? 

ORMB means Oracle Revenue Management and Billing for insurance in a robust and flexible solution that fulfills the demands of current pricing and billing challenges. It is the ultimate solution for businesses that helps in:

• Ensuring a better revenue management system that captures all the revenue opportunities
• Developing smarter pricing solutions
• Maximizing the effectiveness of the billing process by including robust billing calculation methodologies.

For achieving the maximum possible revenue, every organization aims to utilize its potential at full capacity in the best way as mentioned above.

According to the report published by McKinsey, a smart pricing strategy can boost revenues by 6-15%. A bad pricing strategy and an inefficient billing system can contribute to two major factors in revenue leakages by 3-8% of an income.

A smarter pricing and billing strategy has become the most crucial demand for fetching every revenue opportunity. It is a process where businesses can set the price at a level where products/services could be sold to the customer in a win-win approach. Creating a strategy that fits for all i.e. at a single pricing and revenue management, can calculate fees and chargers that are prepared by invoices by managing all the clients equally. But, in an actual manner neither all the customers are similar nor their buying behavior is the same and the factors affecting their buying decisions are also different.

ORMB helps insurance companies to acquire the pricing and revenue management strategy that is created by keeping the focus on customers’ buying patterns. Such buying behavior could either be a continuous purchase practice or a one-time purchase practice.

An emerging need for pricing strategy in the insurance industry!

Today, the business market is turning more complex, competitive, and customer-focus. But the highlight for every business always remained its customers. For achieving the aspired profits and sustaining in the competitive market, dynamic pricing strategies are a must. Focusing on the cost-plus profit theory is no longer effective, in fact, multiple factors impact an insurance organization for their pricing strategies. Here is why:

To overcome these challenges, how can ORMB help insurance companies?

For all the pricing and billing challenges, Cloud is the answer!

Oracle outlines Oracle Financial Services Revenue Management and Billing Cloud Services for pre-configuration and pre-integration as a suite for cloud services. It is designed to bring exponential revenue and profitability to insurance companies in today’s world.

ORMB helps the user to know the prices of premiums, fee structure, credits, discounts, various taxes, and more. All such prices vary sometimes according to the various attributes such as transaction attributes (like, self-funded customers can calculate a claim-based fees model, based on the claimer transaction’s coverage class on health insurance its pricing may vary). Based on characteristics like premium calculation, and the claimer’s characteristics, the pricing strategies vary. ORMB enables pricing components through its analytics and customer-focus requirements.

Defining standard pricing for common and multiple customers and a customer-centric pricing strategy are all facilitated by ORMB. Furthermore, the system helps the user to define pricing at many levels in various customer hierarchies.

ORMB helps in providing an innovative pricing strategy for customers who are fully insured or self-funded at many different pricing levels. Few methodologies are used for stating the pricing of the customers. Those are:

• Premium pricing: An age-based premium pricing and tiered premium pricing are useful in setting the price for a premium amount. This is the case for fully insured customers.
• Processing of a claim amount: For calculating the final amount that would be charged comes under this kind of pricing.
• Retention Fee: These fees can be claim-based fees or enrollment-based fees.
• Flat and Recurring Fees: A one-time and ad-hoc charger or a recurring premium fee are all defined under ORMB.Now, we can conclude that the right pricing strategy for the right individual at the right point in time results in exponential growth by exploring untapped revenue potential.

Aarav Solutions could be your one-stop solution for getting all the creative, strategist insightful technology solutions. We provide services like digital transformation, Lead-to-cash services, Oracle BRM implementation services, order-to-cash services, and more that drive the future of your digital business. Get in touch with a thoughtful and innovative leadership team for getting all the solutions to your business problems.

Know more about us

Facebook | Linkedin | Twitter | Instagram