Adaptive Policy Administration
By Roger Soppe on Jan 19, 2010
A key lesson insurers learned during the past year is that they have to prepare to embrace unanticipated change. In fact, agility and the ability to adapt to change need to become the key characteristics of the business performance plan. As 2010 kicks off, insurers are re-examining the way they do business--and taking a hard look at better aligning business processes to get the most value out of IT investments. They are focused on system investments that enable them to not merely sustain, but drive profitable growth. This means systems must fuel the company's ability to rapidly enter new markets, exit unprofitable ones, introduce uniquely differentiated products, and support diverse sale channels.
Yet, the ability to accelerate speed to market stalls when companies are held back by the constraints of their current policy administration systems. Inflexible legacy systems can lengthen product development cycle time, increase overhead and cost new business opportunities. Legacy systems also lock insurers into outdated business practices, putting them further behind their more agile competitors.
To meet their goals for growth and profitability--and to adapt to change--insurers require an adaptive policy administration system with rules-based product configuration tools that enables agile business practices. They need a flexible, modern system that delivers speed, reliability and consistency, particularly throughout the product development process. An adaptive system is designed to be flexible, agile, and maneuverable, so that the system itself is no longer a constraint to new product development.
Adaptive policy administration systems help insurers eliminate constraints within the product development cycle in three primary ways:
1. Removing reliance on IT
2. Streamlining quality assurance
3. Managing rule migrations and standards
By removing these constraints, an adaptive policy administration system enables insurers to increase their speed to market, reduce total cost of ownership and achieve competitive advantage. Having adaptive systems can help you identify and remove constraints that impede your ability to prepare for and respond to an ever-changing market.
By leveraging an adaptive policy administration system, insurance companies are removing the constraints that stand between them and rapid, agile new product development. By removing reliance on IT, streamlining quality assurance, and managing rule migrations and standards, they can successfully enter new markets and gain an advantage over their competitors.
For a more in-depth look at this topic, please download the white paper Speeding" Insurance Product Development: Removing Constraints through an Adaptive Systems Approach.
Roger A. Soppe, CLU, LUTCF, is the Director of Global Insurance Strategy for Oracle Insurance. He has more than 20 years of experience in the life, health, annuity and property & casualty industries, managing strategy, sales services and marketing. Soppe joined Oracle following the company's acquisition of AdminServer in 2008. He previously held leadership and sales positions at StoneRiver (Fiserv Insurance Solutions) and Prudential Insurance.