Using SMF’s Vendor Intelligence™, Ohio-based insurer saves over $1M on new Policy Administration System
(Atlanta, Georgia – April 25, 2018) – SMF Advisors, the leading provider of Vendor Intelligence™ for the insurance industry, announced today that they reduced the cost of a new policy administration system for an Ohio-based personal and commercial lines insurance carrier by over one-million dollars.
SMF worked closely with Underwriting, IT and Procurement to ensure everyone was on the same page. Using vendor intelligence data from dozens of similar, recent PAS purchases, SMF helped this Ohio insurer secure a savings of over $130,000/year for a 5-year term on license costs for the Policy Module. SMF also helped negotiate an additional savings expected to be over half a million dollars in services on the implementation along with guarantees around the timeframe. The total savings is expected to be in the $1.1M range across the 1.5-year project.
“Our client had a budget but was helpless when it came to understanding Fair Market Value on leading insurance systems,” said Jim Stone, Partner with SMF. “In insurance, companies only acquire new policy systems every 10-15 years, so it is impossible for them to know what FMV really is. SMF tracks dozens of policy, billing and claims deals every year so we were critical in helping them reduce their costs as well as the risk around implementation.”
Insurance carriers are under more pressure to deliver products faster and in a more personalized manner for both personal and commercial lines of business. Replacing outdated legacy policy, billing and claims systems in order to keep up with these growing needs is critical to insurers. SMF is helping insurers reduce the risk of overspending on these systems.
SMF is a leading provider of vendor intelligence to the insurance, supply-chain and higher-education industries. Vendor intelligence is the data and methodology used by SMF to help companies ensure they do not overspend on technology purchases by using actionable intelligence from dozens of similar, recent purchases. For more information please visit: www.spendmanagementllc.com.
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