Many insurers launched new Policy Administration Systems (PAS) in
the late 90's, and the industry noise level is indicating that it may
be time for many to upgrade. Replacing your core Policy Administration
System (PAS) can be an overwhelming undertaking. Preparing your company
for the review and selection process of a new system is an important
first step in managing the project successfully. Ten tips to include in
the preparation phase include:
1. Secure executive support and
involvement in the selection of a project team. It is okay to feel you
need the help of an outside expert to assist the team in identifying the
vendor short list, just don't relinquish charge to select the best
choice to meet your needs.
2. Identify and assemble project team
members that include both subject matter experts and business users. The
team needs to represent all products, states, ratings and rules that
will be required. Don't leave an experienced agent, actuary and legal
counsel representative off the team. Err on the side of involving more
people than less.
3. Provide an agenda before each meeting and ask
one team member to transcribe notes that will be distributed before the
next meeting.
4. Assign responsibility to one team member to spearhead the creation of a comprehensive RFP document.
5.
Ask one or more team members to detail the current system technology
and capabilities and Identify needs (must have's) and wants (wish list)
in defining the system qualifications.
6. Prepare documentation of product information for the vendor and Identify how data migration will be managed.
7.
Establish early and often communication with all departments and
support functions in an effort to reduce employee anxiety about change.
Request that one or more team members create a communication and
training plan will occur from start to launch.
8. Define who needs to be involved in user acceptance testing and when/how it will occur.
9.
Identify and select only vendors who can demonstrate that they have
successfully completed at least three Policy Administration System
replacement implementations. The vendors selected to submit a Request
for Proposal (RFP) should be asked to undergo an RFP qualifying step to
show product, rate, and compliance knowledge before even completing an
RFP.
10. Once you have narrowed the vendor field to those who
will be asked to prepare a detailed RFP, clearly communicate the process
and timeline. Welcome specific questions and input from the vendors
throughout the RFP submission process.
Summary
Outsourcing
the job of selecting the vendor short list to an "industry expert"
should not replace the internal team's involvement. Selecting a vendor
that has a track record for replacing Policy Administration Systems is
critical. You don't want to pay for a vendor's business learning curve -
the risk is far too great. Be sure to dig deep into the system
functionality and not just examine the surface. There is a big
difference between "yes, we can meet that requirement" from "yes, we
have done met that requirement before and it's in our product set".
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