August 21, 2012 by Canadian Underwriter
Software as a Service (SaaS) has gained interest in the insurance world recently, with a growing number of insurance companies considering the SaaS model for core insurance systems, notes a new report from Celent.
Two years ago, Legal & General Netherlands decided to replace its policy administration system. The report, Leveraging SaaS to Tackle the Legacy Challenge: The Case of Legal & General Netherlands, analyzes how the Dutch insurer tackled this replacement with a specific focus on the decision to go for a SaaS model.
Legal & General selected the SaaS model from LeanApps, a technology vendor, to support its main objectives around flexibility enhancement, modern technology adoption, and continuous adaptation to legislation changes.
Celent’s report list the lessons derived from the Legal & General project as including the following:
Celent cites two additional main issues surrounding SaaS adoption for insurance, namely SaaS maturity and implementation complexity.
With regard to the first point, LeanApps is a leader in driving cloud adoption for core insurance applications across the Dutch insurance industry with 90% of its implementations hosted in a cloud environment today. However, it is not yet a complete SaaS solution.
The second issue revolves around the implementation complexity associated with integrating a core insurance solution on a SaaS model with other partners and solutions both inside and outside the organization.