The policy administration transformation effort includes many phases that present the carrier with unique challenges. Survey respondents were asked which phase was the most challenging. Planning resulted in the most issues, while post-transformation was cited as the least challenging. 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 what occurrences caused transformation plans to go off course, increasing scope, costs and time, and describe governance tools to keep projects on track.
Part 2 of a three-part article series.
Related articles:
Part 1: Policy Administration Transformation: Business Case Moves Carriers to Action Part 3: Advancing a Digital Agenda: Policy Administration Transformation Is Step 1 for Carriers (publishing Dec. 20)This article series is part of a larger EY report, “A Springboard for improvement.”
Scope Management Is a Critical Success Factor
The planning phase is crucial to any implementation, and the size and complexity of a policy transformation is significant because it serves as the system of record and integrates with many other functions throughout the organization. If a policy transformation is planned incorrectly, carriers must deal with staffing concerns, improper future state requirements and other potential issues.
These issues are likely to lead to scope increases, which frequently constrain the budget and push timelines, causing carriers to place a priority on scope management. These increases can be functional or arise from underestimating the effort or cost to complete the work. Survey respondents that were in the process of or had completed their transformation experienced many examples of these scope increases during their transformation.