123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Insurance >> View Article

Policy Administration System Modernization Is Occurring At A Nascar Pace

Profile Picture
By Author: Nate Rodney
Total Articles: 499
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

A look back to 15 years ago reveals that most insurers back then built their own PAS solutions in-house. In an effort to address the long time lines and escalating costs associated with this strategy, the trend shifted to a packaged solution approach. Today you rarely find a carrier building their own solution as several options for improving or modernizing have become more popular.

A July 2013 study of 121 property/casualty insurers conducted by the advisory firm Strategy Meets Action shows that over 80% of insurers have replaced or are in the process of looking to replace their Policy Administration System (PAS). Specifically, the survey, reports that 30% of specialty lines insurers, 27% of workers compensation insurers and 24% of commercial lines insurers, are transitioning to the use of more modern automated policy administration systems. A significant number of the insurers are now considering cloud-based solutions indicating that they are becoming more convinced that security and control concerns are no longer insurmountable issues.

Looking forward, the biggest obstacle to system replacement cited by many ...
... insurers is their reliance on multiple administration systems. While 39% of respondents indicated their employer was using one PAS, 35% conceded that they were using 2 or 3 and 17% acknowledged using from 4 to 6 systems.

The four most significant changes that are driving many insurers to proceed with modernization full throttle are:

1. Core system software developers are writing better, more comprehensive solutions. While policy administration systems have always addressed policy definition, rating, policy maintenance and print functions adequately, many of the new modern solutions have added agent portals, consumer portals and other augmentations.

2. The acquisition and implementation options available have increased significantly. The expanded array of In-house licenses, ASP models and SaaS (Software as a Service) or cloud solutions allow an insurer to choose the solution that best fits their need.

3. The use of open technologies has greatly improved the ability to integrate software with other components in an overall system.

4. Many vendors offer a more agile style of transition implementation including early viewing and increased feedback opportunities as the installation proceeds. This change in approach increases the likelihood for smoother implementation and a better outcome.

The benefits of PAS modernization are just too attractive to disregard. Insurers spend up to 75% of their IT budgets on maintaining and running existing systems and only 25% on new product development and market innovation. Insurers are in the business of providing insurance protection, not IT. Launching new markets, responding swiftly to changing market conditions and regulatory changes, enabling the ideal user experience, branding market differentiators and expanding reach through new channels are only a sampling of the many opportunities that an insurer can realize by flipping the IT budget mix.

JDi Data Corporation is a proven leading technology insurance software solutions provider. Policy management software from Jdidata.com is designed to be reliable, easy to use, and cost-effective, all the while complemented by expert and friendly service. Policy administration system by JDi Data has built a reputation of proactively maximizing our client’s technology choices.

Total Views: 414Word Count: 509See All articles From Author

Add Comment

Insurance Articles

1. Sustainability And Insurance: How Car Insurance Brokers In Uae Are Leading The Way
Author: Stephan Rose

2. The Composition Of Cello Music
Author: micheljordan4

3. Understanding The Different Types Of Clarinets
Author: musicinstrumentsins

4. Essential Insurance Plans For Music Store Owners
Author: victor12johnson

5. The Evolution And Cultural Significance Of Heritage Musical Instruments
Author: micheljordan4

6. The Ultimate Car Insurance Calculator For New Car Owners: What You Need To Know
Author: Stephan Rose

7. The Techniques Involved In Playing The Piccolo
Author: musicinstrumentsins

8. How Intricately The Piano Instrument Works?
Author: victor12johnson

9. Techniques Of Playing An Acoustic Guitar
Author: micheljordan4

10. The Relationship Of Bassoon With Other Woodwind Family Members
Author: musicinstrumentsins

11. How Technology Has Shaped The Music Recording Industry?
Author: victor12johnson

12. The Anatomy Of The Fiddle Instruments
Author: micheljordan4

13. 3 Important Reasons To Do Retirement Planning With Mutual Funds?
Author: Joffry Daniel

14. An Insight Into The Appearances Of Oboe In Popular Media
Author: musicinstrumentsins

15. Need Insurance For Appraisers In The Evolving Online Domain
Author: victor12johnson

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: