Climber 1920x1080

How To Uncover Policy Administration System Vendor Credibility

The RFP or selection process may indicate clear functional winners, but there are many considerations for selecting a “partner” vs. a process “winner".

—Dan McCoach, Head of North America Insurance, Life & Health, Celent

The importance of choosing the right policy admin system vendor

Insurance policy Administration System (PAS) modernization can be a career-making or career-breaking decision for life and P&C executives. It may only come around once in a generation, meaning that few life insurance executives have extensive experience navigating the complexities of choosing the right technology and vendor partner.

And the stakes are high. Consider that in many cases, an organization’s legacy systems are more than 20 years old and the new modern, policy admin platform should be expected to last just as long. Companies will have to live with whatever is selected for a long, long time. Policies sold decades from now will be administered on the system you choose today, a system maintained by the vendor you decide to partner with.

Following the best process, doing your due diligence, and involving the right analysts are all key pieces of the solution. But even when you do all of that, you’re still faced with a difficult reality:

Every policy admin system vendor makes the same claims about their solutions, and it can be hard to distinguish fact from fiction.

Vendors will challenge your selection process at every step of the way from RFI/RFPs to evaluation to Proof of Concept. You’ve heard all the usual assertions before: our system is rules-based, no-code, configurable, end-to-end, cloud-based, etc… Of course, not all modern policy administration software is created equal.

Download the full case study. Click here.

Potential problems arising from inflated vendor claims are present through the selection process. Consider what would happen if any of the following were compromised:

  • New Insurance Product Development
  • Configuration
  • Integration Capabilities
  • Cloud Compatibility And Upgradability
  • PAS Suitability For Scale And Product Complexity
  • Costs
  • Implementation
  • Increase Operational Efficiencies
  • Data Migration

Even checking client references doesn’t guarantee the accuracy of policy admin vendor claims

And, a true understanding of a vendor’s actual capabilities can’t be derived just from their responses to your technical questions. And client references, while important, are usually not enough. Of course, in every case, a vendor will offer up the three clients they know will speak glowingly on their behalf. What you’re not going to be hearing about are the clients who suffered when projects ran long, over budget, or when integrations went badly, or communications broke down between the two sides.

So how do you engineer the selection process so that you create the best chance of choosing the right partner for the next generation platform?

Actionable advice on choosing the right policy admin vendor

At Equisoft, our 25 years of experience helping insurance companies implement policy administration systems, uniquely qualifies us to be able to offer: 12 specific, smart questions that leaders ask during the vendor selection process to get beyond a company’s assertions and unearth the truth about their ability to meet your specific needs.

Make these questions key elements of your selection to ensure you make the right choice for the next 20 years of your organization’s future. The work you do today—the smart questions you ask vendors and their clients—will pay off for years to come.

To read the full case study click here

Related Articles

Libra Scale 1920x1080

Policy Administration System

5 Modernization Best Practices in Life Insurance Policy Administration

If you're considering replacing or are already in the process of replacing your policy administration system, read on for Practical Advice for PAS Modernization from veterans.
Read Article
Case Study Fraternal Insurance Carrier GCU Transformed Card Image 640x452 2

Policy Administration System

How Fraternal insurance carrier GCU transformed into a pioneer of digital transformation

The following case study examines how GCU implemented Equisoft/manage as part of a their strategic initiative to reduce operational & technology costs by implementing a state-of-the-art, cloud hosted, digital policy administration system for their members and agents.
Read Case Study
How to Implement Successful Greenfield PAS Modernization in Life Insurance Card image 1

Policy Administration System

How to Implement Successful Greenfield PAS Modernization in Life Insurance

The potential to realize rapid ROI has made ‘Greenfield’ PAS modernization the dominant approach to new product development for life insurance carriers engaged in digital transformation.  
Read eBook