By firstname.lastname@example.org on Nov 21, 2011
Life insurance and annuity carriers continue to recognize the need to modernize their aging policy administration systems, but may be hesitant to move forward because of the inherent risk involved. To help carriers better prepare for what lies ahead LOMA's Resource Magazine asked Karen Furtado, partner of Strategy Meets Action, to help them chart a course in Navigating Policy Administration Selection, the cover story of this month’s issue.
The industry analyst and research firm recently asked insurance carriers to name the business drivers for replacing legacy policy administration systems. The top five cited, according to Furtado, centered on:
- Supporting growth in current lines
- Improving competitive position
- Containing and reducing costs
- Supporting growth in new lines
- Supporting agent demands and interaction
It’s no surprise that fueling growth,
both now and in the future, continues to be a key driver for modernization. Why? Inflexible,
hard-coded, legacy systems require customization by IT every time a change is
required. This in turn impedes a carrier’s
ability to be agile, constraining their ability to quickly adapt to changing
regulatory requirements and evolving market demands. It also stymies their ability to quickly
bring to market new products or rapidly configure changes to existing ones, and
also can inhibit how carriers service customers and distribution channels.
In the article, Furtado advised carriers
to ensure that the policy administration system they are considering is current
and modern, with an adaptable user interface and flexible service-oriented
architecture. She said carriers to should ask themselves, “How
much do you need flexibility and agility now and in the future? Does it support
the business processes and rules that are needed for you to be able to create
that adaptable environment?”
Furtado went on to advise that carriers “Connect your strategy to your business and technical capabilities before you make investment choices…You want to enable your organization to transform for the future, not just automate the past.”
Unlocking High Performance with Policy Administration Transformation also was the topic of a recent LOMA webcast moderated by Ron Clark, editor of LOMA's Resource Magazine. The web cast, which featured speakers from Oracle Insurance and Capgemini, focused on how insurers can competitively drive high performance by:
- Replacing a legacy policy administration system with a modern, flexible platform
- Optimizing IT and operations costs, creating consistent processes and eliminating resource redundancies
- Selecting the right partner with the best blend of technology, operational, and consulting capabilities to achieve market leadership
- Understanding the value of outsourcing closed block operations
Learn more by clicking here to access this free, one-hour recorded webcast.
Helen Pitts, is senior product marketing manager for Oracle Insurance's life and annuities solutions.