In my last blog, I shared 4 things that a modern PAS needs. Insurance expertise, smaller parts to make up the whole, flexibility and easy, low risk upgrading. There are still 3 more things I have on my list:

  1. The potential to transform rides on APIs – Bold.  Yes.  100% true?  Yes.  APIs allow for faster innovation, open up markets insurers may not have considered, and reduce costly, time-consuming, outdated processes.  According to Forbes, forward thinking insurers are reducing costs and time spent by “building their solutions with best-of-breed components, which they access via APIs”.  
  2. Easy is as easy does – you need a system that is configurable.  The more you need to code, the longer time to market, the more difficult your upgrades (see #4).  You need to be ahead of the curve.  You need a configurable system and business user tools to help you achieve this.  Not every change should need an intervention by IT.   
  3. Think with your dollar – At the end of the day, you can’t help but think about the cost of a modern PAS.  All the above are game-changers for your return on investment. 

With these seven requirements as a guide, you now have the ideal smart, modern core system for end-to-end policy administration.

What comes next?

COVID-19 may have turned the world upside down, but insurers have been rising to the challenge. The trends of consumer change since COVID-19 will open thousands of opportunities for insurers to seize the day. As technologies increase, and online retail experiences simplify, consumer expectations for buying and managing insurance will continue to rise. Today’s customers say – “If I can do it online, I will.”  Insurers need to embrace that.  Digital isn’t entirely the answer here either.  If your core system can’t support exposing these transactions and connect the data back and forth, it won’t matter if you have the greatest portal in the world.  It’s just lipstick on a pig.

CIOs are looking to the future, where they should invest, and how it is wrapped in with your core system – however, some of it might look eerily similar.  

Back to the Future      


  • Digital transformation is still a necessity – The insurance industry will never go back.  Any insurer who was well advanced in digitization was able to respond to the pandemic with lighting speed.  An insurer will need to look across their priorities and identify where the best investments are to help support digitization.  It’s always recommended to look at your core to understand if it can support what you need for future innovation.   
  • What’s the value of your investments – If your organizational goals and business initiatives are focused on: selling more, managing risk better, and costing less to operate (as Novarica defines Three Levers of Valuedoes your infrastructure, your policy administration system, or any IT investments support achieving these goals?  
  • Can the cloud help you scale  The ability to meet the demands of your business is what makes the cloud so powerful.  Cut the ties that bind you to your physical infrastructure and let the cloud enable your ability to grow faster and easier and be agile they way you will need to be.   
  • Reinvigorate the old  Redefining outdated process and investing in technology to support automation, process simplification and user experience is key.  Identify areas that can be boosted with AI-driven automation to increase output and reduce error.  Think cost reduction! 
  •  Core replacement is not an IT project, rather it’s an overall business transformation.

A core system (PAS) is the life-blood of managing insurance for an insurer.  You simply do not have the luxury, in order to be competitive in today’s market, to continue with legacy core systems.  A modern, smart core system will bring you flexibility, agility, and innovation for today and tomorrow.  


  • Artificial intelligence
  • cloud
  • Customer Experience
  • digital
  • Digital transformation
  • digitilization
  • digitization program
  • insurance
  • insurers
  • Legacy Systems
  • policy administration system
Colleen Wells

Colleen Wells Colleen Wells is responsible for Product Strategy for Sapiens North America P&C, as well as Sapiens’ Digital Product Suite globally. She possesses expertise in professional services, customer success, running product teams and her true passion — understanding market trends and providing valuable solutions to carriers and customers.