Majesco TL
Follow Us



Common Lessons for Insurers in Modernizing Policy Systems

Karen Furtado | February 10, 2015

Modern core systems are essential to an insurer’s ability to compete effectively in today’s increasingly complex and dynamic market. Policy administration systems (PAS) in particular are ripe for modernization—the PAS is the heart of an insurer’s operations, and it provides the information that feeds other core systems as well as most of the secondary systems like document management and agent portals.

Insurers know that modernization is an inevitable step on the journey forward. The exciting news is that the industry as a whole has reached a tipping point where nearly two out of three insurers are engaged in some stage of PAS modernization, whether in the evaluation stage of a new solution or in the actual implementation.

SMA’s recent study, Policy Administration: P&C Plans and Priorities  reveals that all insurers know they must take the modernization journey and most are already on the way, although in different phases and at their own pace. Fully 78 percent are planning to replace at least one core system (policy, billing, or claims), and more than half are planning to replace all three. With so many insurers working toward the same goal, there are certain commonalities and lessons to be learned that can be used to make a company’s PAS modernization projects more efficient and effective.

One of the most alarming findings from the research is the substantial challenges that insurers are still experiencing as they work with their systems’ configuration tools. This is the number one feature insurers require in a new PAS, but it is also one of the top challenges they cite in working with the solutions on the market, including issues of handling the work internally.

Our observation is twofold: Evolving PAS solutions are adding and enhancing configuration capabilities, but their usability aspects are still maturing. The second insight is that insurers are coming to realize they must reorganize to some degree to improve their maintenance processes.

The skills and resources that a configuration specialist needs are often assumed to exist but are not always present. Resources that could be trained for this role are typically isolated in the business or IT organizations. There needs to be recognition that there are specialized skills to be learned for configuration and maintenance, and decisions to be made about where this work will be performed.

Core systems modernization is inevitable, and although PAS replacement, the biggest component of that process, demands significant investments of time, resources, and money, most insurers have already begun their adoption of modern core systems.

With so many companies engaged in PAS replacement, we can learn a lot about what makes these projects successful, both before and after implementation. There are challenges ahead, but they are not insurmountable, and the benefits of core systems modernization will be realized for years to come.

For more information on Insurer’s Strategic Initiatives, read SMA’s new research report, Policy Administration: P&C Plans and Priorities. Contact Karen Furtado for further information at

Featured articles

Majesco RH

MT 160x600


The Email Chat is a regular feature of the ITA Pro magazine and website. We send a series of questions to an insurance IT leader in search of thought-provoking responses on important issues facing the insurance industry.


The tide is up! It's time to register for ITA LIVE 2019, our annual educational and networking conference! Our theme is "The InsurTech Revolution: Cutting Through the Hype." and we'll be bringing in a torrent of industry thought leaders, amazing insight and wonderful perspectives on the world of insurtech and its impact on the insurance landscape.

ITA LIVE 2019 will present real-life examples of true startup technologies that are helping insurers gain real advantage -- and a competitive edge -- in the marketplace. We’ll highlight the more successful InsurTech partnerships, while offering case studies that demonstrate exciting innovation and cutting-edge techniques impacting all aspects of the insurance ecosystem.

Ride the wave to LIVE 2019. Sign up today! We look forward to seeing you in May, 2019!


only online

Only Online Archive

ITA Pro Buyers' Guide

Vendor Views

Partner News