Published: 01 April 2022
SaaS insurance core systems are becoming more commonplace, but, as most are not true SaaS offerings, they require a hybrid approach to contract price negotiation. Insurance CIOs can use this research to optimize their contract price negotiation.
Insurance SaaS platforms have significant variation in their software and service offerings, making benchmarking and price comparisons difficult to achieve.
Failure to unbundle software and service offerings, and create a clear linkage to business and IT value, will prevent insurance CIOs from developing an effective negotiation strategy.
Overbuying usage volumes and functionality, and underestimating the impact of the operational changes imposed by SaaS, are key failings in contract price negotiations.
Insurance CIOs tasked with financial services technology modernization and transformation should:
Create pricing scenarios that model the impact of changes in usage over a five-year term by using the calculation outlined
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