March 2018 - Novarica predicts that, by 2020, more than 50% of new insurance core system licenses will be a Software as a Service engagement. The advantages of this approach for insurers include a better ongoing maintenance and upgrade path, infrastructure and security ownership by dedicated experts, more flexible pricing models, and an architecture that supports modern best practices.

Not all vendors, however, mean the same thing when they talk about SaaS. Insurers must have a plan in place not only for evaluating the system and technology of a vendor, but also for hosting, maintaining, and licensing the service in the cloud.

The Checklist

• Consider the Location of the Solution’s Servers
• Determine a Preference for Multi-Tenant or Single-Tenant Architecture
• Confirm the Time Involved with Establishing the Account
• Plan for Solution Updates and Clarify an Update Release Process
• Confirm the Vendor’s Fee Schedule
• Understand the Vendor’s Disaster and Business Continuity Plan
• Confirm the Vendor’s Policies Around Data Ownership
• Understand the Benefits of a Software Code Escrow