Systems Integrators in Life/Annuity: How Are They Used?

by Tom Scales, January 11, 2017
Industry Trends
Global

Abstract

Celent has released a new report titled Systems Integrators in Life/Annuity: How Are They Used? The report was written by Tom Scales, a Research Director with Celent's Insurance practice.

Policy administration system implementations are complex, expensive, and time-consuming. This report delves into the use of systems integrators in the life/annuity space to help with these implementations.

The overall view of the use of systems integrators is fairly mixed. The trend in life/annuity is not as clear as it is in P&C/general, where systems integrators are heavily used. The actual experience of insurers queried is very positive, whether the systems integrator played a lead or a support role. Celent’s observation is that systems integrators will be used more heavily, because the vendors need to increase capacity and the insurers want to control costs.

“It is interesting to see the diverse opinions of those that participated in our research. Companies that used systems integrators are happy, but many insurers do not see the need,” Scales commented.

“As companies continue to manage costs, we project that systems integrators will become more ubiquitous. Our belief is the use may be much more targeted, to areas such as configuration and testing,” he added.

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

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

2

Survey Information

3

 

Implementation Status

3

 

Use of a Systems Integrator

4

 

PAS Vendor Cooperation

5

 

SI Area of Focus

6

 

SI Selection Criteria

7

 

BPO Consideration

8

Company Vignettes

9

 

Vignette 1

9

 

Vignette 2

10

 

Vignette 3

10

 

Vignette 4

11

 

Vignette 5

11

 

Vignette 6

12

 

Vignette 7

12

 

Vignette 8

13

 

Vignette 9

13

Direction

14

Conclusion

15

Appendix: Demographic Expansion

16

Leveraging Celent’s Expertise

18

 

Support for Financial Institutions

18

 

Support for Vendors

18

Related Celent Research

19

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