Migrating to a new policy administration system is a challenging task for any insurance carrier. Policy administration systems are the core of the insurance business and is the gateway to information into the company. With an effective policy administration system, carriers can achieve increased efficiency through reduced costs, improved business process, efficient management of complex paper work and customer service requirements.
With multiple legacy systems, various business processes tangled together, silos of customer data, connected with most departments in an organization, making a change or migrating to a new one takes proper planning.
Here are a few things to consider while migrating to a new system:
- Ease of data sharing: A Policy administration system is connected with many other applications in the organization. Sharing of data, information and workflow among various departments will happen regularly. Making sure that the new PAS you are planning to take on enables effective data sharing is key since data sharing enables carriers to pull data related to various processes like underwriting, servicing, renewing, and so forth to apply analytic.
- Ease of operation: The user interface and navigation of the system should be in such a way that employees can learn and access it immediately once the software is implemented. This avoids depending upon a third party to train you employees.
- Ease of integration: Make a note of all the existing systems in your company. This avoids carriers to replace other existing applications to accommodate the new system.
- Should enable proper data transfer: Data migration is one of the important aspects to consider while switching to a new policy administration system. Having a soled figure of the amount of legacy data that will need to be transferred to the new system will help when getting a realistic cost overview for the implementation.
- Budget: Besides considering features of a policy administration system, consider the budget you can allocate for the new system. Since the project is large, if not fixed, the costs may go out of control. Having a budget in place can ease the product purchase process.
What additional items should be considered?