Research results offer insight into core system modernization perspectives and preferences of midsize P&C insurers
Montreal, QC (Sept. 29, 2015) – Oceanwide, an Insurity company and developer of industry-leading, completely configurable, SaaS insurance software, today announced the results of its recently sponsored research project on property and casualty core system modernization.
Conducted by Novarica Research Partners Program and documented in the Core System Modernization: Approaches and Options report, the research effort focused on a survey of midsize P&C insurers to gain their perspectives and preferences on approaches and options for core system modernization. CIOs were asked for their perspective on modernization process, key drivers for vendor and approach selection, how their choice of approach impacted the project, and the value and impact of the effort.
Jeff Goldberg, Novarica’s senior vice president of Research and Consulting and author of the research report, noted, “It’s no surprise that the research found fewer than half of insurers are enthusiastic about their current core systems, resulting in the ongoing push for modernization or replacement. Key capability drivers for insurers are access to new distribution channels, speed-to-market, operational efficiency, and better business insight.”
Goldberg added, “While insurers will employ a variety of modernization approaches, we found 70% of those surveyed plan for a gradual rollout to reduce project risk, even if it means a longer overall timeline. Also interesting, those opting for a slower rollout typically pair it with a ‘surround and modernize’ approach, integrating modern components–such as a portal or underwriting workbench–with the legacy system.”
Other highlights of the research findings include:
- CIOs see configurable systems as a major factor in reducing project time and cost.
- Even when not a factor in vendor selection, insurers feel SaaS has offered value through lower upfront capital costs and, after project completion, formalizing an upgrade path.
- Insurers ranked speed-to-market for production modifications and data accessibility as the top two positive impacts of core modernization projects.
- The most important criteria when selecting a vendor, as well as having the biggest positive impact on implementation, were the design and usability of the system as well as its configurability.
“We are pleased that the research results are consistent with what we are seeing within our own customer base. The slower rollout combined with a surround and replace strategy has proven to be a great approach for midsize P&C insurers to ensure a successful transformation and modernization effort,” commented Mark Adessky, president, Oceanwide. “Whether leveraging our offering as a modern portal or deploying as a solution for new or niche lines of business, our customers have taken full advantage of our SaaS applications delivered in the cloud to minimize cost and risk, while enabling the desired modern processing environment.”
Download a copy of the report from Oceanwide: Core System Modernization: Approached and Options.
Oceanwide, an Insurity company, delivers SaaS core processing solutions to property and casualty (P&C) insurers of all sizes to enable faster reactions to market changes, easy configuration and management of new and existing products for increased speed and lower costs across all lines of business, virtually eliminating professional service fees. Web-enabled and fully-configurable by end users without custom programming, Oceanwide’s insurance software solutions automate core administration (policy, billing, and claims), as well as underwriting, document generation, agent/consumer portals and reporting. Globally, Oceanwide’s software fills gaps in existing legacy systems and provides a modern, end-to-end solution for insurers.
For additional information, please visit the Oceanwide website at www.oceanwide.com, or call (888) 289-7744.