There’s no doubt that the Life and Annuity industry has had its fair share of challenges over the years with new regulatory requirements as well as stiffer competition from within and outside of the insurance industry, but there are signs of life as carriers tackle more strategic planning and attempt to deliver more innovative products.
Dave Shively, Oracle's Senior Director of Life & Annuity Policy Administration, discusses the topic below:
Even with new signs of life, there still remains the age-old challenge of getting new products to market quickly and managing those products across multiple systems. So why don’t insurers just bite the bullet and tackle the monumental task of replacing their legacy systems to support growth? I believe that sometimes what’s needed isn’t a complete overhaul, but a simple solution to a big problem. Here’s a prime example of the problem: the calculation of product pricing duplicated across multiple systems including New Business, Illustrations, Underwriting, Actuarial and Commissions. If a carrier wants to modify the pricing for the product they need to make changes across all of these applications.
And as if the IT challenges weren’t enough, the overall industry is still experiencing high expectations around growth rates as well as the need for improved profitability, customer service and competitive differentiation.
Here at Oracle, we love solving pressing challenges which is why we created the new Oracle Insurance Calculation Engine for Life and Annuity. The purpose-built software provides Life and Annuity carriers with a single engine on which to standardize their rules and calculations – without a complete policy administration transformation.
Oracle Insurance Calculation Engine for Life and Annuity enables carriers to gain a competitive advantage and accelerate time to market with a single environment for managing, maintaining and reusing complex calculation algorithms. The highly configurable solution allows carriers to centralize their calculation algorithms on a single rules-based platform for use across lines of business by enabling the setup, copying, modifying and maintaining of calculations through configuration without additional costly and time-consuming code development. The platform also enables users to test and debug their calculations without having to create complex test scenarios in legacy environments.
So for insurers who aren’t ready for a total policy administration transformation, Oracle Insurance Calculation Engine for Life and Annuity offers peace of mind that a small step can alleviate a major challenge.