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P/C PAS Trends: Learning From InsureTech

Jeff Goldberg

Policy administration systems (PAS) replacements and expansions remain top of mind for property/casualty insurers. Carrier goals include: improving time to market, advancing business intelligence and analytics capabilities, improving customer and distributor service, increasing operational efficiencies, and eliminating technical risk and debt. In order to reach these goals, insurers are investigating and considering the impact of several trends upon core systems: the increase of SaaS/cloud, advances in microservices, the rise of InsureTech, and shifts in implementation strategy.

Silicon Valley’s InsureTech investment boom (with outposts in insurance hubs like Des Moines and New York) is inspiring both excitement and fear in insurers across the country. InsureTech startups include software, data, and service providers that could be invaluable partners to carriers, as well as new industry entrants that may become competitors. Whether viewed as a threat or an opportunity, InsureTech is teaching the industry important lessons on how to optimize and prioritize the customer experience and how to make the most of underserved markets.

Despite InsureTech developments, insurer IT budgets are still mostly dedicated to the maintenance, modernization, and replacement of core systems. Many insurers are still busy laying the modern, flexible core system foundation necessary to take advantage of many emerging technologies. There is little movement in the vended core systems market to incorporate InsureTech capabilities within core. Instead, vendors and insurers should consider how the architecture of a new core system can provide the flexibility needed to take advantage of future technology and allow integration with future partners.

Our most recent Novarica Market Navigator, Property/Casualty Policy Administration Systems, provides detailed profiles of 42 vendor solutions with information on each of the vendors’ capabilities, technology, and market position to help insurer CIOs understand their options in the marketplace.

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About Jeff Goldberg

Jeff Goldberg is a Senior Vice President of Research and Consulting at Novarica. His expertise includes data analytics, SaaS and cloud computing, and data governance. Prior to Novarica, Jeff served as a senior insurance analyst at Celent, Vice President of Internet Technology for Marsh Inc., Director of Web Technology for Harleysville Insurance, and a software consultant for insurers. He also worked at Microsoft and founded and sold a SaaS data analysis health and wellness company. Jeff has a BSE in Computer Science from Princeton University and an MFA from The New School in New York. He can be reached directly at