Report Summary:

This report is designed to provide an overview of emerging property/casualty policy administration systems, and to assist property/casualty insurers in drawing up their shortlists of potential providers based on vendor market position and offering details. A companion report focuses on more established policy administration solutions.

A recent Novarica survey of P/C carrier CIOs indicates that a remarkable 38% ranked policy administration system enhancement or replacement as their top priority, and PAS replacement was the most commonly selected number one priority.

This is further evidence that the P/C policy administration market continues to flourish, and reflects a number of trends:

• The need to improve product development speed to pursue new opportunities (e.g., excess and surplus lines, workers? compensation, etc.), or to accommodate market demands (e.g., micro-rating, direct-to-consumer, etc.)
• The need to improve product development flexibility to enter new niches in a softening market that continues to push towards commoditization
• A desire to reduce dependence on vendors to maintain or enhance the system, or to make day to day changes to rates, underwriting rules, etc., thereby reducing long term total cost of ownership

Another key factor is the desire to attract and retain not just top producers, but also the new generation of producers who simply won't stand for the challenges presented by legacy solutions. This is critical for either attracting captive agents or for increasing wallet share with independent agents. For some carriers, being able to offer policies (or at least quotes) direct to the consumer is another driving factor.

Finally, the direct sellers have set a high bar for customer expectations of online self-service for quotes, policy changes, claims management, and much more. This has led to a "keeping up with the Joneses" push for customer-facing technology in personal lines. On the commercial side, the rise of online self-service across many consumer industries has raised the expectations of users in general, forcing carriers to provide certain online capabilities even for lines of business that just a few years ago seemed safe from such requirements.

Inflexible legacy policy administration systems can prevent insurers from being able to take advantage of new opportunities and being able to meet customer and agent expectations.

While there are a number of modern systems already making waves in both personal and commercial lines, the vendors behind those systems tend to be smaller and have limited bandwidth. Accordingly, a large percentage of systems are being retooled to be more modern and therefore more competitive, and new entrants - either completely new solutions or solutions that are new to the US market - are rapidly emerging. This report focuses on those solutions that have already reached ?critical mass,? while a companion report focuses on emerging solutions.

CONTENTS

Introduction…2
Market Overview…3
About the Profiles…4
Solution profiles…5-39
Conclusions…40
About Novarica…41