Insurance Networking News - July/August 2010

INDusTRy sPEAks

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For those who decide to replace all or part of the PAs, how important are flexible, iterative methodologies to providing implementation support? iterative methodologies slash two key implementation risks: not configuring the system right, and not aligning your people, changing business processes and the new system. experiencing working screens and workflows in iterations dramatically improves users’ ability to envision their future systems and work environment, and successfully guide its realization; decisions about managing scope become visible and concrete. early feedback on the working system is far easier and cheaper to address than rippling fixes back through months and years of work at the end of a traditional project. After experiencing guidewire’s agile implementation approach, many insurers have embraced the methodology across their other projects.

James McCully Product Marketing Manager,

Guidewire Software

In terms of the rip/replace discussion, what type of advice would you offer a carrier with multiple separate policy admin systems that support separate lines of business? Is a single solution the answer? If so, is it advisable to begin such a large project in the current environment? Carriers can now improve agility and efficiency by consolidating books of business on a common policy admin solution. They should look for a flexible, modern system that’s been deliberately architected from the start for the range personal and commercial lines (including workers’ compensation), taking into account not just differences in insurance product offerings, but also specialized, adaptable business processes and workflows attuned to different practices in different lines. in today’s environment carriers can gain a managed risk stream of business benefits, without waiting many years for a big-bang implementation, by phasing rollouts by lines of business, states or operating units.

For those who decide to replace all or part of the PAs, how important are flexible, iterative methodologies to providing implementation support?

For carriers replacing a PAS, an iterative methodology will create quick wins for what can be a long and arduous process. if carriers are upgrading to more modern systems, there will be a number of new features not available in their legacy systems. using the iterative approach can help carriers stay focused on defining features necessary for conversion. However, the success of this approach is dependent somewhat on the type of technology implemented. iterative methodologies rely on frequent business approval of completed features. Some solutions provide business users quick, iterative prototype views instead of requiring full coding and compiling. To have the best success with an iterative approach, choose PAS solutions that facilitate iterative development.

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What types of new features are available in the policy admin systems today that have a positive downstream affect on the distribution network and can provide substantial ROI? one of best advances in policy administration systems is built-in self-service portals. This capability is not only vital to brokers and agents, but also important in deploying a strategy direct to consumers. The ability to allow low-risk quoting and self-servicing of a policy frees up valuable carrier resources for more hands-on effort with higher risk cases. Additionally, self-service capabilities with shopping features provide a significant service to their intended users. Consumers are becoming more and more demanding when it comes to immediate information. Carriers not able to keep up with rapid requests will quickly find they have lost their business to more instantaneous and internet-friendly alternatives.