Vice President, aQs, Inc.
How are policy administration systems
addressing carriers speed-to-market concerns?
How has the technology advanced to provide
faster product development?
powerful software applications are helping insurers
overcome the challenges of product design and
development. modeling tools permit insurers to
test and integrate key aspects of risk selection and
pricing across all lines, including flexible pricing
modifications and streamlined methods of applying
rates and factors. insurance content can be imported
and updated through seamless integration with
bureaus, such as iso, to greatly reduce manual work.
plus, product configuration solutions make it easy to
select from various parameters, such as policy type,
coverage, limits, loss costs, and forms, to define new
product attributes. business analysts can then build,
modify, and maintain insurance products without
programming, so carriers can get innovative products
to market quickly.
What are the newest features and capabilities
of policy administration systems and how can
carriers benefit from them?
the dominant trend in policy administration systems
is increased integration with technology and data that
resides outside of the carrier. the goal for companies
and agents is to streamline processes and improve
ease of doing business. companies are combining
support of portals, upload and download with agency
management systems, comparative raters, and their
own web solutions to offer agents a variety of ways
to interact with them. carriers are also providing
extensive self-service technologies to policyholders.
additionally, as information proliferates, companies
are finding new ways to integrate individual, company,
and risk data into their processes. rules engines and
expert systems enable the effective use of this data to
make better decisions and facilitate low-touch and no-touch processing.
1325 Walnut ridge dr., Hartland, Wi 53029-8894
817.845.6141 | aqssolutions.com
the goal for companies and agents is to
and improve ease of
— larry stern
;ese days, questions arise not so
much about whether to undertake such
a project but more often about how to
implement it. Rip and replace? Build
upon legacy systems? Buy versus build?
;en there are the various end-to-end
and best-of-breed options. Carriers have
more choices than ever as they carefully
consider the risks and opportunities
associated with prospective solutions.
A new business line
or one desiring the
most changes in
is a good candidate
for first phase.
— steVe FranKlin
Vice President, us operations, wyde
What are the advantages and disadvantages of
a best-of-breed versus an end-to-end solution?
When does it make sense for a carrier to choose
one over the other?
several factors influence this choice, including cost
justification, specific business requirements, available
implementation and support staff. best-of-breed does
not make sense if the number of supported interfaces
outweighs the benefits of improving the overall solution.
the support costs will escalate annually as each best-of-breed component requires updates and maintenance
fixes. carriers today require even tighter connection of
premium, costs, claims, and overhead data to better
manage and incent specific lines of business. bob fosters
continued silos of data and operational information that
become difficult to connect and will probably produce an
inconsistent overall workflow process.
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?
it’s a myth that management objectives can only be
effectively monitored by having separate systems for
specific lines of business. a proven single pas solution
will support integrated information across the enterprise
as well as allow for selective management by line of
business. (see our article in this section regarding
flexibility.) a single system can be deployed in phases
based on distribution channels, line of business, or both.
a new business line or one desiring the most changes in
design, underwriting, is a good candidate for first phase.
staff will view the install as beneficial in preparing for
other coming changes.
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1.855. Wynsure (966.7873)
firstname.lastname@example.org | www.Wynsure.com