Exclusive: New Celent Executive Research on Life Insurance Core Modernization
Underwritten by Equisoft, this new research focuses on a specific window in the implementation of a modern policy administration system to understand the tipping point for project approval and how intangible costs and benefits are weighed in the decision-making process.
PHILADELPHIA, Sept. 16, 2020 /CNW Telbec/ - In a new report underwritten by Equisoft, global research firm Celent presents the findings of an interview series aiming to understand how life insurers reached the tipping point in making a decision to move forward with the investment in a modern policy administration system, from the recognition of the problem through the decision to move forward. The research was conducted with selected IT and business executives at large- and mid-sized North American companies offering individual life, annuities, preneed, as well as group and voluntary products.
"Many insurers are at a precipice in their need for a new core system and it will be very difficult to remain competitive while using technology that is long unsupported, in languages no longer in use, run on a complicated and expensive mainframe, and supported by people nearing or past retirement age," explained Keith Raymond, Senior Analyst, Life Insurance and Annuities, Americas at Celent. "Our primary goal with this research was to find consistent themes across insurers, and hopefully identify how companies convert known intangible into tangible benefits that can be monetized."
Click here to access the full report.
Unique technology challenges facing life insurers
As stated by Celent, "life insurers are facing a much longer-term challenge than their non-life peers because they have in-force policies on their books that might have been sold 75 years ago, and policies sold today that could be there for another 75, creating a 150-year problem."
Companies have spent years workng to maintain their aging infrastructure but longer-term considerations about retiring their legacy systems and migrating their data to a modern platform have been turned, almost overnight, into issues that need to be addressed today. Customer expectations have been heightened by their online interactions in other industries, and in a time of physical distancing, the traditional face-to-face meetings to gather customer information, illustrate concepts, complete applications and obtain signatures are no longer possible. Integrated digital front-end tools and automated workflows are now required to optimize the entire sales process.
"The tipping point for our clients was realizing that patching their outdated administration systems on an as-needed basis was not only a resource and cost intensive effort, but one that barely allowed them to maintain the status quo," said Mark DePhillips, Senior Vice President, USA at Equisoft. "To truly compete and thrive in today's fully digital world requires a modern, connected, and configurable policy administration platform. It's been encouraging to see an increasing number of insurers performing cost/benefit analyses, both tangible and intangible, and we're thrilled to be helping many of them move to that fully digital environment."
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