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Thought Paper |
Key Considerations of Data Conversion in
Policy Administration System Consolidation
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| Abstract |
Gartner research (“Building a Business Case for Replacing a Life Policy Administration System”) notes that most insurers’ suffer from a technology landscape that is highly complex, difficult to modify, and extremely costly due to the inheritance of multiple administration systems and past marketing demands. Gartner also states that failure to consolidate policy systems will leave IT as the culprit for various business failures. Finally, Gartner projects that insurers who successfully complete policy administration system (PAS) consolidation will tend to be the winners in the next round of industry consolidation.
It is becoming imperative on part of the decision makers and influencers to develop a comprehensive road map to tread the path to achieve a consolidated state. Typically, such road map will span multiple years and will cover all products. Hence, it is important to have an all-round coverage in the envisioning and strategizing process. Consideration of several components of the strategy is necessary for a pragmatic road map to evolve.
The implementation of the road map is often more challenging than the development of the strategy and is intensely knowledge-driven. High degree of commitment, knowledge sharing and collaboration between the Business and IT teams (FTEs, Consultants, Contractors and Offshore Partners for IT Services & BPO) will lead to success.
This Paper delves deeper into situations where consolidation involves significant data conversions. This paper assumes that the reader understands insurance policy data conversions and associated lifecycle activities and be able to distinguish it with application migration and porting.
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