Digital and New Business Capabilities are Driving Mid- to Large-Size Life Insurers’ Modernization: Novarica CIO Study
Insurers are differentiating themselves with distribution management improvements, expansion into new geographies, and growing their underwriting appetites: Novarica
Boston, MA (July 28, 2020) – In a new research report underwritten by Equisoft, Novarica presents the findings of an interview series conducted with mid- to large-size US life insurance carriers to identify the key drivers for policy administration system modernization projects, as well as the major factors that determine their success.
“For 60% of insurers surveyed, improving digital and new business capabilities stand out as the key drivers for modernization, followed by improvements in productivity to allow faster and more fluid underwriting processes and workflows,” said Tom Benton, Vice President of Research and Consulting at Novarica.
Additional key findings of the report:
- Data accessibility feeds into the key drivers for modernization. Life insurers are exploring new business capabilities that leverage predictive analytics to replace fluid underwriting.
- Integrations are the most time-consuming part of the project. Developing a robust end-to-end test strategy and using automated testing tools ensures applications and integrations are working properly.
- One of the challenges life insurers face is balancing the need to launch new products quickly with the long-term goal of converting legacy products to the new platform.
- Understanding the in-force block and developing a data conversion strategy is imperative.
“Modernizing a core policy admin system is a significant endeavor that requires organizational buy-in,” commented David Nicolai, Vice President, Insurance Solutions at Equisoft. “Most people at insurance companies have never been through a core system replacement, so the pre-planning and evaluation phases are really key. Take your time, envision your future business, carve out your priorities, really get to know the product and the vendors that are involved. And before you make that final decision, recognize that your modernization effort is a journey. I see too many insurers who view a core system implementation as a marathon, and ‘going live’ as the finish line. In reality, that’s when insurers are getting to the start line. When you go live, that’s when you can begin to incrementally roll out new features and services that will enhance your whole customer journey and accelerate growth.”
Click here to access the full report.
About Novarica
Novarica helps more than 100 insurers make better decisions about technology projects and strategy through retained advisory services, published research, and strategy consulting. Its knowledge base covers trends, benchmarks, best practices, case studies, and vendor solutions. Leveraging the expertise of its senior team and more than 300 CIO Research Council members, Novarica provides clients with the ability to make faster, better, more informed decisions. Its consulting services focus on vendor selection, custom benchmarking, project checkpoints, and IT strategy. For more information, visit www.novarica.com.
About Equisoft
Founded in 1994, Equisoft is a global provider of advanced digital solutions in life insurance and wealth management. Recognized as a valued partner by over 50 of the world’s leading financial institutions in 15 countries, Equisoft offers innovative front-end applications, extensive back-office services and a unique data migration expertise. The firm’s industry-leading products include a comprehensive SaaS policy administration solution, CRM, financial needs analysis, asset allocation, quotes and illustrations, electronic application, agency management systems, as well as customer, agent and broker portals. Equisoft is also Oracle’s main global partner for the Oracle Insurance Policy Administration platform. With its business-driven approach, deep industry knowledge, state-of-the-art technology, and over 450 specialized resources based in the USA, Canada, Latin America, South Africa, India and Australia, Equisoft helps its clients tackle any challenge in this era of digital disruption. For more information, visit equisoft.com.
Source: Equisoft
Tags: Equisoft, Life Insurance, modernization, Novarica
Read the original article at Insurance-Canada.ca