If you’re just joining us, you’ll want to catch up on the first part of this series on life insurance platform modernization:
- Part One: Life insurance platform modernization: A must for high performance
- Part Two: Six benefits of life insurance platform modernization
- Part Three: Five approaches to life insurance platform modernization
The benefits of life insurance platform modernization are impressive—improved speed to market, reduced costs, increased efficiencies. It’s easy to get excited about the potential for growth, but before proceeding, insurers need to have a clear view of the implications and a realistic roadmap.
Driving the way forward
There are a number of issues life insurers need to consider carefully and resolve before developing a roadmap:
- Prioritization of portfolios to be migrated. Analyze the profitability of the portfolios under management, such as acquisition and administration margins, and portfolio erosion.
- Definition of the target policy administration system. This includes finalizing the investment required and the strategy for migration to the new system.
- Migration. How will migration be managed? What resources will be required?
- Portfolio rationalization. Consider what consolidation and optimization of the policy administration process will entail and how set-up costs will be contained.
- Outsourcing. Are there benefits to be gained by outsourcing the portfolios?
- Cross- and up-selling. How can the anticipated improvement in customer interaction and service be leveraged through the implementation of a cross- and up-selling capacity?
The market has become more demanding than ever. Insurers can’t afford to sit back and wait with old, out-dated systems. The question is not whether to modernize, but when and how.
To learn more in the meantime, download Reducing costs and time to market through life platform modernization (pdf; opens in a new window).