10 Things to Know Before Buying a Policy Administration System – Part 2

Last week we looked at the first 5 things to know before buying a policy administration system. In this week’s post, we examine the next 5 things to know in order to ensure a successful policy administration replacement.

6. Big Bang Implementation or an Iterative Approach. What is your history with large implementations? Consider an iterative approach to policy administration replacement. A big bang approach could take years to replace just to get into production. With a modern policy administration, the solution is componentized, so you can take an iterative approach – a series of smaller-scope, rapid implementations each addressing specific business objectives and providing you with ongoing wins. Evolving your new policy administration architecture will realize a faster return on your investment, reducing your risks and building on the constant learning that occurs during the implementation process.

7. Go Vertical, Not Horizontal. How long has the vendor served the insurance industry and how deep is their insurance knowledge? Your vendor needs to understand the nuances that exist in the North American insurance market. Experience in any of personal, commercial and specialty lines solutions is a pre-requisite to clear communication.

8. Shop Today for Tomorrow. There are many options available for purchase and you want a best-of-breed rules and tools-based system that is agile and future proof. Best-of-breed systems all you to integrate with other systems such as claims, billing and print solutions. When you make a strategic decision to replace these systems, you can easily adopt a new solution with minimal disruption to the policy administration system, helping to remove constraints for what might be done in the future.

9. Think Enterprise. Think about all your lines of business, not just the one that needs fixing now. Make sure that your Total Cost of Ownership is on a sliding scale. Your vendor should be there in the beginning, but provide tools and training so that with each subsequent implementation phase, you are doing more. Your ultimate goal is to be fully self-sufficient.

10. Look for a Track Record. You’re not just buying technology; you’re also investing in expertise and experience. Policy administration replacement is an expensive, risky proposition and the only way to mitigate that risk is to choose a vendor with a track record of successful implementations.

With these 10 tips in mind, you should be well on your way toward successfully replacing your Policy Administration System.  If you have any further questions, please get in touch with us by emailing info@camilion.com or check out one of our white papers below.

For a look at our track record download the Cincinnati Specialty Underwriters Case Study or the Forrester Case Study: CNA Insurance Deploys a Smart Combination of PLM Processes and Technology.

A big bang approach could take years to replace just to get into production. With a modern policy administration, the solution is componentized, so you can take an iterative approach