For today’s leading annuity providers, a state of the art processing platform is essential to keeping up with the demands of consumers. At many annuity carriers, however, annuity systems are not effectively meeting their needs.
What’s different about today’s annuity environment?
It’s a changing world out there. Annuity purchasers are more educated and have more choices than they did a couple of decades ago and they are demanding more flexibility in their annuities. Underwriting and pricing of annuities is becoming more individualized. Legislative changes are necessitating changes to the way annuities are administered. These challenges make annuity providers’ information systems a special cause for concern.
What’s wrong with legacy systems?
In this environment, annuity providers need to be more agile and flexible to consumer, competitive and legislative changes. Instead, they’re constrained by legacy systems that are:
- Overly-siloed, sometimes as a result of mergers and acquisitions.
- Inflexible and lacking in responsiveness to business needs.
- Expensive to maintain.
- Slow and difficult to update for existing and new products.
- Limited in their scalability and capacity to meet the huge growth in the annuities market as “baby boomers” begin to retire.
Much is at stake and annuity providers are aware of how critical these administrative systems are to their success. In the next post in this series, we’ll look at exactly what the benefits are of a modern platform.
To learn more in the meantime, 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.