Policy Administration Systems: Building Value over Time
Licensing, implementing, and deploying a new policy administration system is often the biggest, most complex, and most costly technology initiative that a property/casualty insurer can undertake. What must an insurer do over time to realize value from such a system?
In a new report, Policy Administration Systems: Building Value over Time, Celent analyzes the initial and continuing strategies insurers use to produce early and continuing value from policy administration systems. The report also includes case studies of how nine insurers evolved their use of new policy administration systems over several years.
The two basic ways to realize the full value from a new policy admin system are to extend and/or deepen its use,” says Donald Light, Senior Analyst with Celent's Insurance group and author of the report.
"Extending addresses what kind of business is put through the policy admin system; and from where that business comes. Deepening is a matter of how it is used, and who uses it. There is a great deal of fluidity in how an insurer can blend extending initiatives and deepening initiatives from year to year," he adds.