Policy Administration Transformation: Business Case Moves Carriers to Action

December 13, 2016 by Laura Ford, Jonathan Kamp and Steve Foster

As the marketplace moves toward digital technology, the need for faster and less expensive solutions is elevating the role of core systems into front-office interactions. This is driving carriers across the industry to replace these systems in order to realize competitive benefits from a state-of-the-art technical solution.

Executive Summary

EY collaborated with Gartner to survey 202 property/casualty insurance companies to better understand the current policy administration transformation landscape. Here, EY representatives present survey results indicating that there's now a clear and compelling business case for such transformations and report on the progress of surveyed carriers to date. Part 1 of a three-part article series. Related articles: This article series is part of a larger EY report, "A Springboard for improvement," available on the EY website here.
Executive SummaryEY collaborated with Gartner to survey 202 property/casualty insurance companies to better understand the current policy administration transformation landscape. Here, EY representatives present survey results indicating that there’s now a clear and compelling business case for such transformations and report on the progress of surveyed carriers to date.

Part 1 of a three-part article series.

Related articles:

Part 2: Getting It Done: Keys to Policy Administration Systems Transformation Success Part 3: Advancing a Digital Agenda: Policy Administration Transformation Is Step 1 for Carriers

This article series is part of a larger EY report, “A Springboard for improvement,” available on the EY website here.

Carriers have always been reliant on their core systems—policy administration, claims and billing. There has been a reluctance, however, to replace these systems in their entirety even as they became obsolete because of the cost and complexity. The tendency has been to disguise legacy system limitations to end users by building new front-end interfaces or, if necessary, manual intervention. But these solutions have become costly to maintain and have failed to resolve the underlying issue.