Insuranceciooutlook

Strategies for Group Insurance Policy Administration Transformation

Insurance CIO Outlook | Wednesday, July 20, 2022

Legacy policy administration systems (PAS) continue to constrain the expansion potential of insurance businesses, making PAS modernization an increasing commercial necessity.

Fremont, CA: According to market trends, the commercial case transition for a  core policy administration system is stronger than ever. Legacy PAS systems continue to restrict an insurer's growth potential and ability to achieve its digital transformation goals. As the number of carriers implementing core transformation programs increases, it will become increasingly impossible to remain competitive without a modernized core that supports the digital capabilities necessary for market success.

Strategies for growing insurance policy administration transformation

Choosing between existing legacy PAS systems and a new, modern solution is one of the most difficult transformation-related choices. There are numerous methods for implementing a PAS transformation, including a combination of technology and sourcing techniques.

Developing the appropriate PAS strategy for group insurance necessitates a thorough study of the business model, strategic priorities, technology requirements, available resources, timeframe targets, and selection of the most suitable solutions. A refined PAS approach that is aligned with the enterprise's strategic levers can deliver essential capabilities that yield significant results.

Irrespective of the decision to commit to a comprehensive transformation, all group insurers should take the following steps. These efforts not only provide immediate value by addressing some of the most pressing issues carriers face today but also provide the groundwork for additional benefits realized through a PAS transformation in the present and future.

- Develop a modular product architecture to improve product structure and streamline business operations.

- Set up a digital architecture and reference technology aligned with the company's needs to develop a core systems vision and direct future investment.

- Modernize integration and data infrastructures to simplify future investments and give a framework for data-driven product and customer decisions.

- Create tier-based service delivery models that span different cohorts or segments.

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