Policy administration transformation worth the work
Despite legitimate concerns – cost, complexity and timing being the most crucial – a large majority of insurers report very high satisfaction with their policy administration transformations.
Our recent survey of global property and casualty insurers uncovered three key themes related to policy administration systems.
- The business case for policy administration transformation is stronger than ever.
- Proper planning and scope management are crucial to successful implementation.
- Policy administration transformation is the first step in an ongoing cycle of digital modernization.
A clear and compelling business case
With the business case for policy administration transformation stronger than ever, it is no wonder that more insurers are replacing outdated systems with new technology.
Who’s transforming? As shown below, 93% of insurers surveyed have begun a policy administration transformation; 51% have already completed their transformation.
Key factors for a successful policy administration transformation
- Effective scope management: Project teams need effective strategies to manage staffing concerns and any new requirements that can constrain budgets, push timelines and otherwise increase scope.
- Commitment from executive sponsorship: Executive involvement is crucial to successful project governance, including resource access, budget planning, decision-making, oversight and more.
- A core decision-making team: A dedicated decision-making team can focus on identifying risks and issues during the project and mitigate adverse risks.
- Teaming with a systems integrator: Systems integrators have expertise in transformation and integrating multiple parties at scale, which can help with difficult scope-related decisions.
“The best transformations have a well-thought-out business case that links capabilities directly to business outcomes. This becomes a tool to focus and manage key scope decisions throughout the course of the implementation.” -- Lars C. Tandrup, EY Principal — Insurance Advisory Services
Focus on the future: transformation is not the final step
While survey findings reveal that satisfaction is high among those that have completed a transformation, there are many untapped opportunities for advancing the digital agenda. Carriers must continue to build on their modernized systems to better serve customers. This includes:
- Expanded digital offerings that align with rising customer expectations
- Greater self-service functions via portals, which brings more functionality to agents and enables future expansion of capabilities
- Using more and higher-quality data and analytics to better understand customer demands and improve decision-making processes