Best Practices for Reducing Risk in Policy Administration System Migrations
By firstname.lastname@example.org on Sep 28, 2010
Last week at Oracle OpenWorld my Oracle Insurance colleague Roger Soppe, senior director of industry strategy, discussed how insurers can reduce the risk of policy administration system migrations through a proof of capability or POC (also known as a proof of concept). Joining Soppe during a session on this topic was Mike Key, vice president, life insurance solutions, Capgemini.
Both noted that life insurers are continuing to move towards replacing their aging legacy systems with an adaptive, rules-based policy administration system. The major factors driving this movement are increased exposure for non compliance, the inability to adapt to evolving market conditions and drive speed to market for insurance products.
Yet the risks associated with replacing and migrating from their current policy admin system(s) to a new one weighs heavily in the decision process for c-level executives. To mitigate this risk they noted that carriers may undertake a POC to prove the capability of the technology, people and process for its policy administration business transformation project.
Soppe highlighted the POC process undertaken by one carrier along with some of the benefits that can be realized when implementing an adaptive system like Oracle Insurance Policy Administration including:
- Greater Speed to Market - leverage rules to collaboratively configure and roll out new, innovative products into the marketplace as well as reconfigure and refile products to adapt to market, regulatory or consumer demands
- Administrative Simplicity - redirect costs traditionally associated with maintenance of aging legacy systems resulting in the ability to better service channels and customers
- Reduced complexity of technical environments - remove constraints of inflexible, hard-coded legacy systems that lock insurers into legacy business practices, require heavy IT intervention and hamper ability to bring products to market quickly
You can learn more about this POC by downloading the joint strategy brief by Oracle Insurance and Capgemini: Proof-of-Concept Done Right: Mitigating the Risk of Policy Administration System Migrations.
Shortly after their session Key and Soppe spoke to Lacey Cooper from O'Keefe & Co. They spoke about the steps an insurer can take to mitigate risks with policy administration transformation and the benefits to be gained through these projects. Click the video below to watch the interview.
You also can read more about Oracle's approach to policy administration and risk mitigation in my blog last week: Oracle Shares Strategy for Life and Annuities at OpenWorld.
Helen Pitts is senior product marketing manager for Oracle Insurance's life and annuities and enterprise document automation solutions.