By firstname.lastname@example.org on Sep 14, 2011
Policy administration systems are core to a carrier's operation. Replacing these systems presents more risk than nearly any other IT project. Carriers should carefully weigh the risks against the benefits as they build the business case for embarking on a modernization project.
In a previous Oracle Insurance Blog I highlighted best practices recommended bySecurian Financial Group's Denise Smieja about the company’s successful approach to replacing its legacy policy administration system. Smieja along with Roger Soppe, Oracle Insurance, were among Insurance & Technology magazine’s virtual roundtable of industry experts that recently weighed in on this topic. While Smieja offered insight on criteria carriers should consider when developing a request for proposal, Soppe focused on another critical step in the evaluation process: the proof-of-concept (POC).
In the article, Setting the Stage with a Solid Proof of Concept, Soppe noted that while many insurers are familiar with the idea of a POC, they may skip this important step due to time or budget constraints. He cited how a leading North American life insurance carrier demonstrated the value of a POC in proving the capabilities of the “people, process and technology” of the vendors and systems integrators being evaluated for its policy administration migration project.
“Other carriers can adopt this idea of a ‘proof-of-capability’ in their own policy admin transformation projects,” advised Soppe in the article. “This process reduces risk and helps build buy-in across the organization. This approach can be crucial to receiving a green light -- it is the final validation of all of the research and decision making that the carrier has done to date and sets the stage for success.”
You can also learn more about Oracle Insurance and how insurance carriers are leveraging its solutions to adapt to change, better service customers, and better manage their business for compliance and growth at Oracle OpenWorld, next month in San Francisco, Calif.
Helen Pitts is senior product marketing manager for Oracle Insurance's life and annuities solutions.