In a new research report underwritten by Equisoft, Novarica presents the findings of an interview series conducted with mid- to large-size US life insurance carriers to identify the key drivers for policy administration system modernization projects, as well as the major factors that determine their success.
“For 60% of insurers surveyed, improving digital and new business capabilities stand out as the key drivers for modernization, followed by improvements in productivity to allow faster and more fluid underwriting processes and workflows,” said Tom Benton, Vice President of Research and Consulting at Novarica.
Additional key findings of the report (Click here to access the full report).:
–Data accessibility feeds into the key drivers for modernization. Life insurers are exploring new business capabilities that leverage predictive analytics to replace fluid underwriting.
-Integrations are the most time-consuming part of the project. Developing a robust end-to-end test strategy and using automated testing tools ensures applications and integrations are working properly.
-One of the challenges life insurers face is balancing the need to launch new products quickly with the long-term goal of converting legacy products to the new platform.
-Understanding the in-force block and developing a data conversion strategy is imperative.
Rana Biswas, Vice President, Insurance & Wealth Solutions – APAC, Equisoft said “The legacy policy administration system (PAS) for most of the carriers in India has now become more of a “system of records” whereas it should be seen and used as a powerful engine to fuel future growth. It is the culture and mindset of the organization that drives the need for any IT transformation project and PAS modernization is the most critical amongst them. A versatile, robust and scalable PAS facilitates quicker turn-around time for new product launches and enhances superior customer experience. The key for life carriers that are evaluating PAS modernization is to identify an experienced partner who has the expertise and a proven track-record of managing complex IT transformation projects globally.”
Modernising a core policy admin system is a significant endeavor that requires organizational buy-in,commented David Nicolai, Vice President, Insurance Solutions at Equisoft.
“Most people at insurance companies have never been through a core system replacement, so the pre-planning and evaluation phases are really key. Take your time, envision your future business, carve out your priorities, really get to know the product and the vendors that are involved. And before you make that final decision, recognize that your modernization effort is a journey. I see too many insurers who view a core system implementation as a marathon, and ‘going live’ as the finish line. In reality, that’s when insurers are getting to the start line. When you go live, that’s when you can begin to incrementally roll out new features and services that will enhance your whole customer journey and accelerate growth.”