Ten Questions to Ask Cloud Life Insurance Policy Admin Vendors

An increasing number of life insurance and annuity carriers are leveraging modern software as a service technology for their core systems.

The insurance industry is undergoing a significant transformation as more carriers embrace cloud-based policy administration systems. This shift towards SaaS technology brings a host of benefits, including increased efficiency, enhanced organizational agility, and reduced costs. However, the landscape of cloud-based policy administration vendors is diverse, and selecting the right partner is critical for ensuring optimal carrier performance and robust information security.

Choosing the right vendor requires a thorough vetting process to avoid potential pitfalls and maximize the advantages of cloud technology. Here are ten crucial questions to ask potential vendors to guide your decision-making process.

1. Do you offer a true private cloud?

Some vendors offer a true “private cloud,” which is fully controlled by the outsource policy administration vendor, rather than the cloud provider itself. Understanding the nature of the cloud environment provided by the vendor is essential. True private clouds, like Andesa’s, offer greater protection against security breaches and data loss, while delivering significant performance benefits. This dedicated control allows for customized security measures tailored specifically to the needs of life insurance and annuities administration.

2. What is your disaster recovery plan?

A cloud policy vendor should have the necessary technologies and strategy in place to mitigate disruption if a catastrophic event were to occur. For example, at Andesa, we have fully redundant monitored data centers in multiple locations – different time zones, power grids and internet backbones. This way, if a disaster occurred, the integrity of our systems would not be compromised and functions would be cut over to a new location – essentially invisible to the user. Potential vendors should have comprehensive strategies and technologies in place to mitigate disruptions.

3. What is your experience level?

Some vendors offering cloud-based policy admin solutions are either IT firms that are relatively new to the life insurance space, or traditional outsource life insurance service providers that are new to SaaS. Experience in both SaaS technology and the life insurance industry is crucial for a smooth transition to the cloud. Some vendors may excel in IT but lack industry-specific knowledge, while others may have deep industry roots but are new to SaaS. Finding a vendor like Andesa, which combines advanced SaaS technology with extensive experience in life insurance and annuities, is essential. Our history as a pioneer in group administration translates into comprehensive expertise across individual and group products, ensuring confidence in exploring new markets, innovating offerings, and enhancing customer experience.

4. How do you handle data conversion?

Converting data from old legacy systems into a cloud setting can cause substantial risk and headache for most cloud policy admin solutions. Andesa, equipped with established technology and methodology, can create custom data maps and perform accurate, validated conversions both efficiently and securely. Data conversion from legacy systems to a cloud environment can be complex and fraught with risk. It is essential to partner with a vendor who can perform these conversions accurately and securely. Andesa employs established technology and proven methodologies to create custom data maps, ensuring efficient and validated data conversions. Our meticulous approach minimizes risks and headaches associated with data migration, providing a seamless transition to the cloud.

5. Can you handle complex or unusual situations?

Andesa has a fully integrated SaaS solution set, which is capable of handling products as simple as whole or term life, or as complex as multi-life corporate- and bank-owned policies. We have a highly configurable system that can scale to meet the needs of any size insurer. The ability to manage a wide range of products, from simple to highly complex, is a key consideration. Andesa’s fully integrated SaaS solution set is designed to handle products as straightforward as whole or term life, and as intricate as multi-life corporate- and bank-owned policies. Our highly configurable system can scale to meet the needs of insurers of all sizes, offering flexibility and adaptability for various policy types and administrative requirements.

6. What level of client support do you provide?

Understanding the vendor’s support structure is crucial for ongoing operations. Inquire about the availability of support (24/7 or during business hours), the expertise of the support team, and the channels through which support can be accessed (phone, email, live chat). Andesa offers comprehensive customer support tailored to your needs, ensuring you have access to expert assistance whenever required, helping to resolve issues promptly and maintain smooth operations.

7. Can you provide references or case studies?

Requesting references or case studies allows you to gain insights into the vendor’s track record and how they have successfully implemented their solutions for other clients. Andesa can provide detailed case studies and references from satisfied clients, demonstrating our proven ability to deliver effective solutions and support successful transitions to the cloud.

8. How do you ensure compliance with industry regulations?

Given the stringent regulatory environment in the insurance industry, it is vital to know how the vendor ensures compliance with relevant regulations and standards. Andesa has robust processes in place for maintaining compliance, including regular audits and adherence to industry standards. Our commitment to compliance ensures that your operations remain within legal and regulatory frameworks.

9. What is your approach to system updates and maintenance?

Understanding the vendor’s policy regarding system updates, maintenance schedules, and how they handle potential downtime is essential. Andesa employs a proactive approach to system updates and maintenance, ensuring that our software remains up-to-date and functional without significant disruptions to your operations. This approach helps maintain the reliability and performance of your policy administration system.

10. How scalable is your solution?

As your company grows, your policy administration needs may change. It is important to choose a vendor whose solutions can easily scale to accommodate increased workloads and additional users. Andesa’s solutions are designed to be highly scalable, ensuring that they can grow with your business and adapt to evolving requirements, providing long-term value and flexibility.

Conclusion

Regardless of the potential benefits of moving life insurance policy administration to the cloud, not committing the necessary time and focus to choosing the right vendor can have negative consequences. By asking these ten questions, you can ensure a well-informed decision that aligns with your strategic goals and operational needs.

Contact us to learn more about how Andesa Services can help you navigate the complexities of cloud-based life insurance policy administration with confidence.