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.
Until recently, a typical PAS implementation involved an initial release that addressed 2-3 lines of business, a handful of states, and renewal on conversion. Subsequent releases would deliver the remaining lines of business and states in a multi-year program. Today, insurers are reacting to the perceived extended timeframes, large scope, and significant investment by taking an approach to accelerate delivery of the first release.
It is becoming more common for insurers to implement PAS with a greenfield line of business in the first release, adding in legacy lines and data conversion in later releases. It is also becoming more common for insurers that implement legacy products to go live with new business only for a significant pilot period before introducing conversion on renewal. Finally, extended full-suite implementations (PAS, billing, claims, reporting, and portals) are becoming a more standard approach for smaller insurers, where they deliver more within the traditional implementation timelines.
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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