INDUSTRY SPEAKS
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In terms of the rip/replace discussion, what type of advice would
you offer a carrier with separate policy admin systems that support
separate lines of business? Is a single solution the answer? If so,
how should they approach and successfully embrace this challenge?
A single solution is not necessarily the most efficient way to go. The
answer depends on the carrier needs and what they can leverage from
existing systems. If a carrier wants to pursue a direct to consumer
strategy for Personal Lines for example, while using an agent distribution
channel for its standard Commercial business and also maintaining a
couple proprietary lines, then choosing solutions that fit these unique
Robert Burns
Sr. Product Director
Commercial Policy Administration
By Rodney Griffin
SVP Product Management – Insurance Solutions, StoneRiver
Why are flexible, iterative methodologies so important when
providing implementation support?
It is unrealistic to expect that business requirements can be
predefined perfectly before any implementation starts. Furthermore,
the business environment, and therefore requirements and priorities,
are to some extent almost always in a state of flux. Decisions in one
area may have collateral or downstream effects that are not fully
understood at the time they are made. All of these factors mean that
effective implementation methodologies must be flexible and iterative.
Solution designers have to support agile methodologies by identifying
purposes may drive the carrier to multiple solutions: consumer friendly
presentation for Personal, robust processing, content, and regulatory
maintenance services for Commercial, and tools to customize and self-maintain the proprietary lines.
What types of new features are available in the policy admin
systems today that have a positive downstream affect on the
distribution network?
Ease of agency data import (and download to update the ams) is one
key to simplifying the submission/quote process, saving agents
potentially thousands of key-strokes. The seamless integration of third
party data can provide pre-fill that saves more keying burden typically
borne by the distribution network. Integrated data solutions provide ease
of access to risk scoring for quick qualification and access to reference
data (location rating factors, address validation, building values, etc.) that
also ensure data quality, and improve quote accuracy while easing carrier
compliance headaches. Finally, a fully integrated PAS Portal provides
custom views of PAS functions and data.
volatile business elements and ensuring their easy configurability,
along with decomposing requirements into reusable and easily
replaceable services.
In terms of the rip/replace discussion, what type of advice would
you offer a carrier with separate policy admin systems that support
separate lines of business? Is a single solution the answer? If so,
how should they approach and successfully embrace this challenge?
Multiple administration systems are more expensive to maintain
and make it harder to create a customer-centric view of business.
Multi-policy discounts, account billing and multi-policy servicing touch
points encourage retention and a larger wallet share, since
customers are the best source of new business through cross and
up-selling. A single enterprise administration solution with a strong
client component is clearly the most efficient approach. The solution
selected should support current lines as well as those projected. A
phased implementation and conversion mitigates risks. And, it’s
essential to select a vendor with a history of complex implementations
that can become a strategic partner.
In terms of the rip/replace discussion, what type of advice would
you offer a carrier with separate policy admin systems that support
separate lines of business? Is a single solution the answer? If so,
how should they approach and successfully embrace this challenge?
Separate policy admin systems for separate lines of business create a
disjointed infrastructure, fragmented communication, and poor service. In
terms of costs, these disconnected legacy applications consume as
much as 80 percent of IT budgets just in system maintenance. Rather
than utilize a risky rip-and-replace approach, insurance companies must
leverage a single module-based solution as a means to a tailored, gradual
replacement strategy. This one-system solution enables organizations to
Randy Wheeler Managing Director of Aon eSolutions
“pick and choose” the capabilities they need—and implement those
modules on their own timeframe. By bringing together multiple lines and
functions on one platform, the solution enhances workflow, efficiency, and
performance.
Why is carving out an enterprise-wide strategy that combines input
from both business and IT so important when making a decision to
modernize a legacy system?
An Enterprise Platform enables insurance companies to breakdown
traditional silos, so data and systems are integrated across an insurer’s
complex IT environment. This Enterprise Platform affords insurance IT
professionals with maximum capability to customize the system to
meet unique needs and adapt to market changes. Companies define
business rules automation across their enterprise to increase straight-through policy processing. With a centralized data repository, real-time
intelligence empowers insurers to make faster, more accurate decisions
to underwrite risks, reduce losses, and collect timely payments. And
with Internet-distributed reports, insurers leverage full transparency and
insight to achieve objectives in profitability, growth, and market share.
