September 2018 – Core conversions are shifting beyond the scope of policy administration systems. Insurers across the board are taking on multi-component core implementations with longer timelines and higher costs.
To help insurers benchmark their core system implementations, Novarica conducted an analysis of 35 case studies involving a policy administration system (PAS) implementation. This report highlights trends in this area and provides metrics around estimated project cost, duration, and resourcing.
- Why PAS Conversions? Novarica explores why P/C insurers are investing in legacy system replacements.
- Project Metrics. Metrics including cost, duration, and resourcing are broken down.
- Insurer Considerations. Key priorities, success factors, and challenges are reviewed.
Key Points and Findings
- Switching to Agile methodology was both a major challenge and key success factor. Insurers that invested in Agile adoption attributed their successful PAS conversion to this transition.
- Consolidation of multiple legacy systems was a common theme. Many multi-system conversions involved consolidating, centralizing, and streamlining various legacy systems.
- Multi-system conversions did not necessarily take longer or cost more than single-system conversions. Several insurers implemented multi-system conversion projects with relatively short timelines and low cost.