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Life Insurers’ Perceptions of Policy Administration Systems: 2018 North America Edition

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14 June 2018

Life insurers continue to replace their policy administration systems or add new ones to their back offices. Even though newer systems are more functional than ever, client feedback reveals the difficulty of implementing these systems.

Key research questions

  • How long have life insurers been using their respective policy administration systems?
  • Which features and functions of policy administration systems do insurers utilize and rely on the most?
  • How satisfied are insurers with the client services attached to their policy administration systems licenses/subscriptions?

Abstract

Life insurers are being told their new system will solve their legacy problem, move them toward digital, and allow for insurer self-sufficiency, and maintenance. In the end, it’s difficult to achieve all those goals in a short timeframe.

How happy are life insurance PAS clients with their vendors and systems? Celent looks back over the years to see how systems have adapted to meet insurers’ needs and the reaction of clients to these system updates.

This report details the survey results regarding insurers’ perspectives in terms of features/functions, ease of integration, IT vendors’ implementation capabilities and professional services, configuration capabilities based on specific scenarios, and business staff involvement in system changes. Throughout the report Celent provides its insight into changes over time. The last section of the report provides our recommendations for IT vendors and insurers.