There is nothing more challenging for insurance carriers than undergoing
a core systems replacement project. Better tools don’t alleviate all the
risk, but they make the rewards that much sweeter.
By Robert Regis Hyle
There has never really been a debate over whether insurance carriers in the 21st century should re- place legacy systems that were installed in the 20th century. Today’s technology offers more bargain for
the (big) bucks it takes to conduct such a project.
Debates rage on, though, on how to advance such projects: Suite solutions? Best of breed? Replace the entire core?
One system at a time?
These questions have to be answered individually by carriers as they examine their own operations and discover that
there may be similarities between carriers of a certain size,
but there are just as many differences.
Millers Mutual Group, for example, is in the midst of
replacing its policy, claims, billing, and reinsurance systems
and even though recent patterns have shown carriers are
getting more comfortable with a suite of products from one
vendor, they instead chose a best-of-breed approach.
“It really was all about following a best-of-breed environ-
ment,” says Lawrence Fortin,
CIO of Millers Mutual. The
has already used a rating
system from Accenture’s and
Fortin explains the plan was
to eventually convert to the
Accenture policy system.
Millers Mutual also purchased the Accenture billing
system, but went with the
solution provider Systema for
its claims solution. The insurer
is collaborating with another
vendor to build its own reinsurance system.
“Unless we found a good reason not to go with Accenture,
that is where we were going,” says Fortin. “The rest of the