There are many vendors that offer Policy Administration Systems for Life Insurance and Annuities. Carrier policy administration supports many key functions, such as new business processing, quoting, billing, and insurance product actuarial functionality. Many Insurance Policy Administration Systems support claims, commissions and agent licensing. There are several more key features to these robust policy platforms. Many of these functions can be purchased as separate modules, or even separate systems from various vendors and then integrated accordingly.
Carriers who have been around a long time have invested millions of dollars in heavily customized insurance policy admin systems that are old technology and classified with the taboo word “Legacy Systems”. Newer platforms, on the other hand, have more agility and component-based architecture so that you get speedy to-market products and prevents you being caught in an entangled web that paints you in a technological corner that would take millions of dollars and years to move forward into a modern platform. The good news is that many of these vendors can also augment pieces of older Policy Admin platforms. Strategically, making an investment in a Policy Administration platform is a big decision and a very large project investment. Please note that for those carriers that are looking to outsource their Policy Administration we are providing information and resources here at InsurTech Express as part of our “Solutions Roadmap”. – Ken Leibow