Ensuring Success in Core Systems Replacements: Operational Considerations and Emerging Strategies for Life Insurers
Sixty-nine percent of life/health/annuity insurers prefer wholesale replacement of core systems to address their legacy modernisation challenges, reflecting what is seen as an easier approach. Wrapping and outsourcing are the second and third preferences.
In Ensuring Success in Core System Replacements: Life Edition, Celent analyses data from 90 life/health/annuity insurers, drawing comparisons to previous years’ surveys. This report is part of a series on legacy modernisation within the industry, and is published in conjunction with Tracking the Progress in Core Systems Replacement: Global Life Edition, which includes feedback around the current state of the IT environment, future plans, modernisation plans, and role of partners.
This report covers current strategies and goals around legacy modernisation, the extent to which business can take over functions such as rating, data conversion, and sourcing strategies. The report also details 10 factors that need to be in place to ensure success of such transformation programs.
“Success in core system replacement is more art than science,” says Catherine Stagg-Macey, Senior Vice President with Celent’s Insurance Group and author of the report. “In the coming years, we will see many insurers deliver on their modernisation programs. And to be successful, we will need more leadership, better communication, and stronger partnerships.”
This report will be of interest to insurers planning or midway through a transformation project. Data in the report can be used to test or validate decisions around replacement goals and strategies. There are clear pointers to where the company might expect increased business responsibility of maintenance in post-implementation. The chapters on factors in successful programs can be used as a refresher for the program office or as a nudge to executive sponsors who are new to the scope and complexity of such programs.
This 26-page report contains eight figures and three tables.