In today's environment, carriers have an opportunity to transform their business and gain competitive advantage leading into an upcoming market upturn. In a marketplace that continues to be dictated by ever-changing customer needs and their buying behaviors, success for insurers is based on their ability to create more business agility from top to bottom, reduce total cost of ownership (TCO), improve time to market, and increase flexibility across operations.

To address this, insurers have sought to transform one of their most important business capabilities, policy administration (PA).  According to Capgemini and Efma's 2012 World Insurance Report, 67 percent of North American insurers say policy administration transformation is their top priority over the next two years.

Historically, insurers have been tied to a variety of legacy business practices, several involving the PA function limiting their capacity to create business agility resulting in higher TCO and inhibited ability to compete in the marketplace. However, according to the 2012 World Insurance Report, by making investments in core, back-office levers of PA, insurers could potentially improve their business and technology efficiencies by up to 30 percent, lower total cost of ownership by up to 40 percent, and lower cost-per-policy by up to 30 percent.