Ram Sundaram, principal of X by 2, believes there are several factors that favor—and some that discourage—insurers who are looking at a suite strategy

The size of the insurer and its geographic footprint: The smaller the company and the narrower the footprint, a suite strategy is more appealing. The larger the direct written premium and the more widespread the geography, a suite is less appealing.
Carrier business model: Is there a holding company and many business units or divisions that are decentralized? If so, a suite strategy is more appealing because the technology is not widely intertwined.
The simplicity of products, lines of business, and business processes: If a carrier is not interested in complex product innovation but rather looking at attractiveness of price point or some convenience factors, a suite strategy is appealing. Carrier that write one or two lines of business might find it more attractive as well. Those insures writing non-standard products or a combination of personal, commercial or specialty lines, a suite is less appealing.
The maturity and footprint of the IT organization: The more mature the IT organization is and the larger the footprint, as daunting as integration is they still feel they have the resources to tackle best of breed. If not, then a suite is hugely favored.
Vendor strategy: If the vendor has an integrated suite and brought it to market from the ground up, there is a more favorable view on that as opposed to a vendor strategy that gets to a suite by way of acquisition. Those vendors have their own headaches from putting things together.
Timeline to implementation: The more you go best of breed, the longer it will take for integration and conversion. If you are looking at a more aggressive timeline for implementation, a suite might be preferred.
Appetite for risk: Going to a suite strategy is less risky in terms of project success, but more risky in terms of vendor concentration. If you put all your core systems in the hands of one vendor that adds a dimension of risk.

Special Reports /

For Core Solutions, Some Insurers Opt for the Suite Life

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