Monday, April 29, 2013
Insurance Core Systems Modernization: You won't hear this from an industry analyst...
Carriers have lots of rules that govern everything from rating and underwriting to policy processing. Most carriers attempting to replace their policy administration system forget about this important point and discover too late that the number of rules will more than like overwhelm a new core system.
Smart insurers focus first on product configuration and rating migrating legacy systems to bespoke rating engines. Carriers often have multiple rating engines tied to policy administration systems, web portals and other systems which leads to inconsistent pricing, compliance issues and the inability to develop innovative products.
Many industry analysts fail to tell their customers that the rating engines that are locked into most policy administration systems are often inflexible and lack the ability to scale. Some carriers have even figured out that they don't really need to replace their administration system and just needed to focus on externalizing their rating and rules...
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