For insurance carriers paying substantial amounts annually to maintain legacy policy administration systems
Calculate TCO of legacy policy admin systems versus modern cloud platforms. Understand how modernization can deliver substantial maintenance cost savings, reduce technical debt, dramatically accelerate product launch velocity, and provide significant total annual value.
Total Annual Value
$2,032,000
Annual Cost Savings
$682,000
Revenue Acceleration
$1,350,000
Legacy policy admin system costs $850,000 annually in maintenance plus $360,000 in customization (2400 hours at $150/hour), totaling $1,210,000. Modern platform at $420,000 annually reduces customization by 70% to 720 hours, saving $682,000 in costs. Additionally, reducing product launch time from 18 to 7 months accelerates 32 months of revenue across 3 products, worth $1,350,000 annually for $2,032,000 total value.
Legacy policy admin system at $1,210,000 annually includes $850,000 in maintenance and 2,400 hours of customization work costing $360,000. Modern platforms reduce total costs to $528,000 through lower platform fees and 70% less customization effort, saving $682,000 annually while reducing product launch time from 18 to 7 months.
Beyond cost savings, modern policy admin platforms enable API-first architecture, real-time rating, configurable products without code, and seamless integrations. Organizations benefit from faster regulatory compliance updates, improved data quality, mobile-first policyholder experiences, and the ability to rapidly test new products in market. The 32 months accelerated across 3 product launches annually represents $1,350,000 in early revenue recognition, demonstrating clear competitive advantage from modern infrastructure.
Total Annual Value
$2,032,000
Annual Cost Savings
$682,000
Revenue Acceleration
$1,350,000
Legacy policy admin system costs $850,000 annually in maintenance plus $360,000 in customization (2400 hours at $150/hour), totaling $1,210,000. Modern platform at $420,000 annually reduces customization by 70% to 720 hours, saving $682,000 in costs. Additionally, reducing product launch time from 18 to 7 months accelerates 32 months of revenue across 3 products, worth $1,350,000 annually for $2,032,000 total value.
Legacy policy admin system at $1,210,000 annually includes $850,000 in maintenance and 2,400 hours of customization work costing $360,000. Modern platforms reduce total costs to $528,000 through lower platform fees and 70% less customization effort, saving $682,000 annually while reducing product launch time from 18 to 7 months.
Beyond cost savings, modern policy admin platforms enable API-first architecture, real-time rating, configurable products without code, and seamless integrations. Organizations benefit from faster regulatory compliance updates, improved data quality, mobile-first policyholder experiences, and the ability to rapidly test new products in market. The 32 months accelerated across 3 product launches annually represents $1,350,000 in early revenue recognition, demonstrating clear competitive advantage from modern infrastructure.
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Book a MeetingLegacy policy administration systems can cost carriers substantial amounts annually in maintenance fees, infrastructure, customization costs, and IT support. Product launches can take considerable time due to system complexity. This technical debt prevents carriers from responding to market opportunities, launching digital products, or meeting customer expectations for modern experiences.
Modern cloud-based PAS platforms can substantially reduce TCO through SaaS pricing eliminating infrastructure costs, pre-built functionality reducing customization, automated updates replacing manual upgrades, and API-first architectures enabling rapid integration. Product launch velocity can improve dramatically. Organizations may save significantly annually while gaining agility to launch products much faster.
Strategic benefits extend beyond cost savings: ability to launch usage-based insurance and embedded insurance products, real-time data access for underwriting and claims, improved customer experience, reduced risk from vendor-independent cloud architecture, and talent attraction through modern technology. Modernization transforms carriers from technology-constrained to digitally competitive.
Regional insurer with 20-year-old mainframe system
Mid-market insurer seeking digital transformation
National carrier replacing multiple legacy systems
Specialty insurer constrained by inflexible legacy platform
Modernization means replacing mainframe or client-server policy admin systems with cloud-native, API-first platforms. Modern systems use microservices architecture, support real-time data access, enable low-code product configuration, and integrate easily with digital channels, AI, and third-party services.
Most carriers buy commercial platforms due to significantly faster implementation, lower risk, continuous vendor innovation, and pre-built insurance functionality. Custom development only makes sense for unique business models where commercial solutions cannot fit requirements.
Migration strategies include big-bang cutover, gradual migration (new business first, renewals migrate over time), or coexistence (modern PAS for new products, legacy for existing book). Most carriers choose gradual migration to reduce risk while capturing benefits faster.
Data conversion is complex but manageable with proper planning. Modern platforms include migration tools, carriers can clean data during migration, and phased approaches reduce risk. Budget meaningful time within the project timeline for data assessment, cleansing, mapping, and validation.
Commercial platform implementations vary in duration depending on carrier size, product complexity, and integration requirements. MVP launches for single product can happen relatively quickly. Custom development takes substantially longer and carries substantially higher risk.
Cloud platforms offer flexible pricing including pay-per-policy models that align costs with premium growth. Phased approaches allow budget spreading over time. ROI from maintenance savings and growth enablement can fund investment relatively quickly.
Calculate savings from automated claims intake, triage, and adjudication versus manual processing. See cost per claim reduction, cycle time improvement, and total operational savings from claims automation
Calculate time and cost savings from automated underwriting for simple policies. See underwriter capacity increase, faster quote-to-bind time, improved conversion rates, and revenue impact from underwriting automation
Calculate ROI of implementing telematics and usage-based insurance pricing. See loss ratio improvements, competitive advantages from attracting safer drivers, and total annual value from UBI programs versus traditional fixed pricing
Calculate revenue impact and ROI of improving insurance customer retention rates. See annual revenue preserved, acquisition cost savings, and lifetime value from reducing churn through retention programs and customer experience improvements
Calculate revenue lost from insurance quote abandonment and recovery potential. See how automated follow-up, remarketing, and nurture campaigns can convert abandoned quotes into policies and increase overall conversion rates
Calculate savings and revenue impact from automated policy renewals. See processing cost reductions, improved renewal rates from better customer experience, staff time freed, and total ROI from renewal automation platforms