In the previous posts in this series, we talked about how legacy annuity systems  are not meeting annuity providers’ needs and what the significant benefits are of a modern annuity platform.

Once annuity providers recognize the need to modernize their annuity platform, how do they go about it? Is wholesale replacement the only option? Is it the best option? In this post, we’ll look at three different routes to a modern annuity platform.

Wholesale replacement

The most obvious route providers wanting to implement a modern annuity system is total replacement—exchanging all legacy systems for a modern platform. Although this can be a highly effective approach and was a common choice with large providers a decade ago, the current IT budget crunch generally precludes all but a few companies from pursuing this method today.


A second approach is “fronting”—leveraging a leading annuity software platform to provide a new, updated user interface layer to the legacy systems. Fronting lets providers improve usability by tailoring process flows for consumers, agents, distribution partners and home-office users. However, it’s limited by the functionality of the underlying legacy systems.

Hybrid/fronting/partial replacement

Modernizing your annuity platform to reduce costs, improve customer service and increase business agility
Read the report.

A third approach is a hybrid of the first two approaches—replacing critical systems immediately, pursuing a phased approach to migrate other systems and leveraging fronting capabilities for less critical systems in the short term. The business case for taking this route can be strong, with lower costs up front, and less process upheaval and risk to business continuity.

As technology and the industry change at a blistering pace, a modern annuity platform can give providers a competitive edge, helping them control costs, make faster changes to processes, make better decisions about pricing based on more effective risk analysis, and most importantly, improve the speed to market for new products.

To learn more, download the report: Modernizing Your Annuity Platform to Reduce Costs, Improve Customer Service and Increase Business Agility (PDF, opens in a new window) written by my colleagues, Mitchel Ludwig, Accenture Life Insurance Platform Product Line Lead, and Jim Reynolds, Accenture Life Insurance Platform Product Manager.

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