Life and annuity insurers are strongly interested in new policy administration systems (PAS), with PAS replacements remaining a top priority. The primary business drivers for life and annuity carriers are the ability to launch new products quickly and to effectively leverage digital channels and advanced analytics. Additionally, carriers are also concerned about the long-term costs and sustainability of their legacy systems.
When it comes to capabilities like customer service, business intelligence/analytics, and product innovation, core replacement is now seen as important. These capabilities are hard to quantify in the business case, but they are things that business leaders are increasingly requesting technology leaders to address, and carriers are seeking benefits beyond simply cost reduction when considering replacement projects.
Insurers in the life and annuity space are looking toward vendors that offer more options for implementations to lower risk and cost while also offering benefits like improved data transparency, speed to market, workflow, and reduced maintenance and operations. Vendors are responding to the trends that carriers want, such as hosted/SaaS-based implementations, componentized implementation approaches, and microservices.
Now more than ever, insurers have a number of viable options for new PAS vendors, with many life and annuity solutions that are maturing and providing more flexible and configurable architectures, as well as stand-alone module capabilities. While there are still challenges with managing overall project risks and conversions, carriers are realizing benefits in efficiency of operations, improved functional capabilities, and better data management, all of which favorably position insurers for the future.
Our most recent Novarica Market Navigator, Life/Health/Annuity Policy Administration Systems, provides detailed profiles of 25 vendor solutions with information on each of the vendors’ capabilities, technology, and market position to help insurer CIOs understand their options in the marketplace.
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