Life Insurers’ Perception of Policy Administration Systems: 2014 North America Edition

by Karen Monks, September 4, 2014
Industry Trends
North America

Abstract

Compared to two years ago, the overall perception of vendor policy administration systems has improved.

In the report Life Insurers’ Perception of Policy Administration Systems: 2014 North America Edition, Celent examines insurers’ perspectives in the following categories:

  • Ease of integration.
  • IT vendors’ implementation capabilities and professional services.
  • Training required for end users.
  • Insurers’ evaluation of the system based on specific configuration scenarios.
  • Operational and business staff involvement.

This report details Celent survey findings for North American insurers in relation to their perception of the ease of integrating their PAS with internal applications and databases as well as external data sources, their evaluation of IT vendors’ implementation and post-implementation capabilities, training effort required before an end user can be productive with the policy administration system, and PAS configuration capabilities.

“An insurer should consider many factors when evaluating policy administration systems including existing customer feedback. The insurer should also map and prioritize existing functional requirements before evaluating PASs and consider different approaches to meeting the requirements such as full package or best-of-breed solutions before short-listing vendors,” states Karen Monks, an analyst with Celent’s Insurance Group and author of the report.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

2

Survey Methodology

3

 

Survey Structure

3

 

Panel of Participants

3

PAS Adoption and Definition

4

 

PAS Replacement Cycle

4

 

Components Used

4

The North American Insurer Perception

7

 

Ease of Integration

7

 

IT Vendor Implementation and Post-Implementation Capabilities

9

 

Training Effort Required

10

 

Configuration Capabilities and IT Involvement

10

Final Thoughts

13

 

Recommendations for IT Vendors

13

 

Recommendations for Insurers

13

Appendix

14

Leveraging Celent’s Expertise

15

 

Support for Financial Institutions

15

 

Support for Vendors

15

Related Celent Research

16

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