BI’s Article search uses Boolean search capabilities. If you are not familiar with these principles, here are some quick tips.

To search specifically for more than one word, put the search term in quotation marks. For example, “workers compensation”. This will limit your search to that combination of words.

To search for a combination of terms, use quotations and the & symbol. For example, “hurricane” & “loss”.

Login Register Subscribe

Property/casualty insurers' policy administration systems improving: Study


Property/casualty insurers that have implemented new policy administration systems are realizing gains in business-user satisfaction and distributor service, according a study released Thursday by research and advisory firm Novarica, a division of New York-based Novantas L.L.C.

The report, “U.S. P&C Policy Administration Systems Projects: Averages and Metrics,” is based on information from 37 large and midsize insurers. It found that insurers that have updated their policy administration systems report improvements of more than 25% in speed to market and data accessibility. Moreover, Novarica found that 25% of large P/C insurers and 40% of midsize P/C insurers are either in the middle of a policy administration system replacement project or are planning to begin one in 2012.

“P&C insurers are replacing their core policy administration systems at an unparalleled rate, and these findings underscore why,” Chad Hersh, partner at Novarica, said in a statement. “All of insurers’ core business issues—speed to market, distributor service, efficiency, and data analytics—eventually come back to core policy administration systems.”

The report notes, however, that these efforts consume a considerable amount of time and money. According to the report, the average total cost for upgrading or replacing a policy administration system at a midsize insurer was $8.7 million. At a large insurer, the average total cost was $23.5 million.

Most large P/C insurer policy administration systems projects completed their initial rollouts in less than 20 months, and their full projects within 40 months, the report noted.