This is an exciting time in the insurance industry, with several factors leading carriers to make key technology decisions in 2007. There is pent-up demand for more-efficient systems; and insurer profitability has improved, allowing for increased investment.
Next-generation solutions for policy administration have emerged that can help insurers better adapt to changing business priorities. The power of these solutions has retired the buy-or-build question -- it's now a "buy" world.
Carriers choosing to implement new solutions should recognize the critical need for flexible integration architecture. Companies aren't likely to replace every system at once, so it's imperative that new solutions be carefully integrated with remaining legacy infrastructure. Integration solutions must accommodate changes in data structure and help ensure that the benefits of the new-breed solutions are not lost. Finally, companies should get the support they need for successful deployment from individuals and firms that have proven records of system innovation success.