Gartner Research

Projecting the Full Costs of Replacing Life Insurance Policy Administration Systems

Published: 10 March 2017

ID: G00326199

Analyst(s): Laurie Shotton , Juergen Weiss


More than 50% of life insurance policy administration projects fail to deliver the original business case. CIOs don't incorporate all factors that influence the full cost. Understanding the factors that influence the budget is paramount to achieving successful delivery.

Table Of Contents
  • Impacts


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

Gartner Recommended Reading

©2021 Gartner, Inc. and/or its affiliates. All rights reserved. Gartner is a registered trademark of Gartner, Inc. and its affiliates. This publication may not be reproduced or distributed in any form without Gartner’s prior written permission. It consists of the opinions of Gartner’s research organization, which should not be construed as statements of fact. While the information contained in this publication has been obtained from sources believed to be reliable, Gartner disclaims all warranties as to the accuracy, completeness or adequacy of such information. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. Your access and use of this publication are governed by Gartner’s Usage Policy. Gartner prides itself on its reputation for independence and objectivity. Its research is produced independently by its research organization without input or influence from any third party. For further information, see Guiding Principles on Independence and Objectivity.

Already have a Gartner Account?

Become a client

Learn how to access this content as a Gartner client.