As insurance carriers grow, the proliferation of their legacy policy administration system becomes costly to maintain and presents a serious barrier to product development. Modern policy administration solutions solve these problems. The challenge, however, becomes effective data migration. Carriers must successfully migrate their data to the new target system in order to fully capitalize on the benefits of their modern PAS.
The Negative Repercussions of Legacy Policy Administration Systems
In this case study, a Tier 1 international carrier with over a million customers approached Equisoft and its subsidiary Universal Conversion Technologies (UCT) with the goal of consolidating their legacy policy administration system into one modern OIPA solution. The main challenge they were facing was finding a way to effectively migrate their data to the new targets system.
Legacy systems slow down the pace of product development and restrict carriers from leveraging data and using it to enhance client service solutions. As the Tier 1 carrier continued to grow and expand, their legacy policy administration systems were no longer be able to support that growth in a way that would ensure competitiveness. Their legacy PAS did not have the functionality to adequately sustain new product innovation and acquisitions and was placing the carrier in a position where they were facing untenable business and IT risk.
The carrier was looking for a policy administration system that would be flexible enough to support a vast array of products, both existing and future. The required a system that would enable innovation and growth, make new product development simple and facilitate exponential growth.
In addition to selecting a suitable PAS, the carrier needed to migrate its existing blocks of business off the legacy systems so they could be retired. And so that the existing policies could be serviced on the new PAS.
Key Impacts of a Successful Migration
A successful migration would enable the carrier to retire their legacy PAS and realize the full benefits of their modernization strategy. They needed to consolidate their data in order to reduce resource needs and costs. The carrier was looking for a modern policy administration system that would allow for streamlined workflows and increase overall efficiency.
The carrier's reasons for modernization and the need for migration were obvious. But with more than 400,000 policies to be migrated from the legacy PAS to the new target system, the potential risk to the business of a failed conversion was significant.
In order to ensure a smooth and successful data migration, it was important for the carrier to partner with a company that had a demonstrated history of successful migration projects in order to ensure quick and successful project completion.
Check out this case study to find out how this Tier 1 North American carrier solved their data migration challenges in collaboration with UCT and Equisoft