Policy administration system (PAS) replacement projects are still a high priority for many property/casualty (P/C) insurers. But the marketplace is being affected by mergers and acquisitions, shifting deployment preferences, and new technology. Despite these new considerations, P/C carriers looking into a core system transformation project can still prepare for success by partnering with the vendor of their choice early in the process.
The marketplace for P/C PAS solutions looks different than it did just a few years ago as several large companies, including Majesco, Sapiens, and Insurity, have acquired smaller vendors in the space to build out their core systems capabilities. Other larger organizations like Duck Creek and Guidewire have purchased smaller companies with specific offerings, including customer and agent portals as well as data analytics platforms, to bolster their suites’ capabilities.
Another difference from the PAS solutions of years past is that carriers are increasingly embracing the concept of cloud deployment and Software-as-a-Service (SaaS) hosting models to cut costs. Insurers had expressed concern about the security risks that come with cloud, but to assuage these fears, most vendors with SaaS deployments offer a single-tenant model.
Carriers are also turning to headless implementations, where carriers’ own user interfaces top vended core systems, and low-code (or no-code) digital experience platforms to improve the overall user experience of policyholders and agents alike. The downside to these platforms, however, is that they are typically industry-agnostic. Integrating with insurance core systems takes configuration, but some solution providers are tackling this issue by using microservices.
These considerations may differ from years past, but one thing remains unchanged: Project readiness is paramount to a successful core systems project. PAS transformation teams should consider steps in three categories: business readiness, IT and technical readiness, and program readiness. Taking the time to prepare can reduce the risk of project swirl and save the organization time and money.
Novarica’s latest Market Navigator, Property/Casualty Policy Administration Systems, provides a detailed overview of each of 42 vendor solutions active in the P/C PAS space. Each profile includes detailed information on vendors’ capabilities, technology, and market position. If you’re interested in learning more about our research and advisory work in this area, please contact me at [email protected]
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