Controlling the Risk in Insurance Data Conversion

by Craig Beattie,  Michael Fitzgerald, November 29, 2010
Product Trends/ Reviews
Global, Asia-Pacific, EMEA, Latin America, North America

Abstract

Successful software implementations are key to the renewal of insurance processes. Such efforts often involve moving information from one system to another in a process called data conversion.

The work involved in data conversions is quite different from other software project activities and requires different resources, skill sets, and strategies. As a result, conversions are typically high-risk endeavors. A new report, Controlling the Risk in Insurance Data Conversion, offers tips and techniques for those faced with one or more data conversion projects.

"Innovation in business processes is a key area for many insurance companies, and data conversion is almost always part of the transition,” says Mike Fitzgerald, Senior Analyst with Celent’s Insurance Group and coauthor of the report.

“This report is designed to identify some of the pitfalls surrounding data conversion and to suggest actions to mitigate them,” adds Craig Beattie, Analyst with Celent’s Insurance Group and coauthor of the report.

This report examines the role of data conversion, the type of data being converted, and some typical dimensions of conversion projects. The unique challenges of data conversion and some best practice approaches are also documented. Finally, the report presents a tool to quantify the risk involved and guide mitigation efforts.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

4

 

Method

4

A Method for Data Conversion

6

 

Know Your Data

6

 

Map Your Data

7

 

Move Your Data

7

Why Are Insurers Converting Data?

8

What Are Insurers Converting?

11

 

Classic Data

11

 

Supporting Data

11

 

In the Future

12

Considerations in Data Conversion Efforts

13

 

Integration

13

 

Migration

13

Issues

16

 

Data

16

 

Process

17

 

People

19

Remediation and Best Practice

20

 

Data

20

 

Process

21

 

People

21

 

Novel Approaches

24

Risk Identification and Quantification

25

 

Data

26

 

Process

27

 

People

27

Conclusion

30

Leveraging Celent’s Expertise

30

 

Support for Financial Institutions

30

 

Support for Vendors

30

Related Celent Research

31

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