Gartner Research

Projecting the Full Costs of Replacing Life Insurance Policy Administration Systems

Published: 04 September 2015

ID: G00279092

Analyst(s): Juergen Weiss, Laurie Shotton

Summary

More than 50% of life insurance policy administration projects fail to deliver the original business case. CIOs fail to incorporate all factors that influence the full cost. Understanding the factors that influence the budget is paramount to achieving a successful delivery.

Table Of Contents
  • Impacts

Analysis

Impacts and Recommendations

  • The failure of life insurance CIOs to account for all cost drivers is resulting in overly optimistic business cases for policy administration system implementations
  • Life insurance CIOs are typically presented with a broad range of licensing models for policy administration systems, which makes the comparison of different vendor options and cost assessments difficult
  • Life insurance CIOs quantifying the labor required to deliver a successful policy administration implementation are underestimating the resource requirements, resulting in budget overruns and even project failures
    • Business Roles
    • IT Roles

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