Contributor: Don Canning
Many global insurance companies struggle with legacy modernization initiatives, which in essence is a call to action for Policy Administration System (PAS) consolidation and cost reduction; a conundrum of addition through subtraction.
What is driving Legacy Modernization? Many insurance executives comment that their legacy systems are just too complex and expensive to respond to the market in a timely manner.
It seems everyone is in agreement; “With less do more” is the executive mantra especially when the consolidation of operational systems on one platform can provide significant cost benefits. Carriers can reduce core budgets significantly, streamline operational process, redeploy staff for better value and simplify technology solutions. So what’s holding them back? Some say it’s too difficult to migrate product portfolios from one platform to another. Others view it as too risky considering potential for failure. The bottom line is that this is a complex topic to address in one given area, and– it’s a decision that a carrier will commit to for the next 15-20 years.
Consolidation strategies require a trusted advisor that can deliver both business agility, reduced complexity and cost reduction. Many pause with hesitation because of the perceived risk involved in migrating from the old system to a new one. However, as insurance executives become better acquainted with solution providers who possess multi-line deployment capability, they are able to identify compelling benefits such as better economics, accelerated new product development and business rules configuration capabilities.
Engaging with partners who have been diligently investing year-over-year in design upgrades will change the way executives think about future PAS investments and portfolio migrations. Trusted advisors should be able to demonstrate mastery disciplines such as:
- Project management office
- Professional services specialists
- Business rules design and implementation
- Data conversion automation
- Ease of systems integration
- Easy-for-retrofit of releases
- Incremental modular approach
The key deployment capabilities of experienced partners can help a carrier dramatically reduce anxiety and risk and enable them to realize the business agility, reduced complexity and cost savings benefits of single platform modern core administration system.
For more information about Addition through Subtraction read the link: Single Source Platform: An Insurance Carrier’s Conundrum