Woodridge, Ill. (PRWEB) May 7, 2008
Pekin Life Insurance Company Partners with LIDP Consulting (http://www.lidp.com), Inc. to Convert all Whole Life and Universal Life Contracts to The Administrator for a Fixed Price.
- Fixed Price Conversion Removes Unknowns
- Quantify ROI Prior to Start of Project
The consolidation of new business and contract administration systems has consistently been on the radar of every insurance company for years. However, there are hurdles that prevent the consolidation from happening.
The ROI gained from such a consolidation can never be quantified. The ROI is obviously there, but due to unknown costs and timeframes, an accurate return is difficult to measure. The other major hurdle is finding a single system that can process all your life, health and annuity products that currently reside on multiple legacy systems, while allowing you to bring advanced products to market.
Pekin Life Insurance Company chose to mitigate the risks by partnering with LIDP Consulting, Inc. on a fixed price conversion project.
Pekin chose The Administrator from LIDP as the replacement for their legacy assembler code-based system. They chose The Administrator for its online real-time architecture and wide support of even the most complex insurance products.
Pekin has been issuing new business and has already converted their Term product line to The Administrator. Pekin is also using The Administrator's Agency Management System (AMS) for agent contracting, licensing, compensation and reporting.
For the conversion of their Whole Life and Universal Life products to The Administrator Pekin selected LIDP's fixed price conversion pricing model. First, Pekin worked with LIDP to develop a detailed project plan. LIDP then provided Pekin with a fixed price quote for the entire project. The project plan included data mapping of contract and product information, all configuration of product and processing rules, conversion of data on LIDP hardware, establishment of a test region on LIDP hardware, running automated testing scripts and the execution of the test plan.
According to Scott Martin, President and COO at Pekin, "Our conversion team has completed successful implementation of AMS and conversion of our term business, which represents about one half of new applications processed. The next step, Whole Life and Universal Life, is a high hurdle. Adoption of a fixed price allows us to demonstrate our commitment to the project, and has given us a solid timeline that everyone from the project team to our board of directors can understand."
Continues Martin, "We are looking forward to introduction of 2001 CSO permanent life insurance products on LIDP. Once that occurs the flexibility of The Administrator will allow us to demonstrate the return on our investment."
"Carriers worry about the unknowns associated with a system conversion," said Bill Schnittker, LIDP's President and Founder. "LIDP's fixed price approach offers the insurance industry a way to migrate legacy systems to a modern, proven, technology neutral solution with very little risk. Carriers can quickly make a decision that will result in drastic reductions in operating expenses, and the ability to bring new, advanced products to market quickly. Only LIDP offers a flexible modern system with known conversion costs to help carriers nail down a justifiable return-on-investment. It's exactly what this industry has needed for a long time."
About Pekin Insurance
Pekin Insurance, located in Pekin Illinois, has been providing dependable insurance coverage to families throughout the Midwest since 1921. Pekin has grown into a company of more than 700 employees, 1,100 agencies, 7,000 independent agents and boasts almost 618,000 policyholders.
About LIDP Consulting, Inc.
LIDP Consulting, Inc. has provided software and consulting services to the life, health and annuity industry for over 25 years. LIDP specializes in comprehensive administration solutions and legacy system consolidation.
LIDP Consulting, Inc.