Snapshot: Policy Admin Suite Pricing Models and Levels

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Snapshot: Policy Admin Suite Pricing Models and Levels

March 2020 - Novarica’s snap poll of insurer CIOs shows distribution of averaging license fees for insurance core policy admin suites, with a look at the relation to fee structure and deployment model.

Novarica has long maintained that all software pricing models are imaginary. Vendors price based on what they think the market will bear considering the comprehensiveness and complexity of the solution, as well as the value delivered.

The snap poll 63 insurer CIO members of the Novarica Research Council, indicates that total fee levels do not correlate directly to the breadth of the suite, company size, deployment model, or pricing structure.

Novarica advises all insurers to consider proposed pricing structures to be written in sand and to be prepared to negotiate a win-win fee structure and level that meets their objectives while ensuring that they are a profitable customer for the vendor.

 

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