Steve Discher, executive vice president, Robert E. Nolan Co.

In this context, best-of-breed refers to a highly-regarded solution for a specific need--for example, a commission system--as compared to an all-in-one system that combines multiple solutions into one system, such as underwriting plus policy admin plus commissions. Carriers should know that selecting a best-of-breed system usually means they will be doing more system integration and platform maintenance, probably more training, and more vendor relationship management because they are dealing with multiple systems. However, they should also know that they will have a high degree of flexibility to assemble a set of solutions that meet their specific needs. They also gain the flexibility to discretely manage license costs, and to upgrade/replace portions of their systems portfolio as needs and technologies evolve. A carrier must decide what is best for them based on the uniqueness of their needs, their portfolio and integration management capabilities, and the amount of vendor support they require.