Armed Forces Insurance Exchange (AFI) is a personal lines carrier specializing in the military community spanning active duty, veterans, certain government agency personnel, and their immediate families. AFI needed to migrate off its legacy mainframe-based policy admin and claims system to a newer Platform supporting an updated set of products. That Migration Program was in year seven with minimal progress and extensive costs. AFI’s long-term strategy required migration of all lines of business from the legacy mainframe to the modern Platform at a supportable investment level.
Core Catalysts baselined the Migration Program with an eye towards implementation cycle time and cost optimization. A joint team (AFI and vendor) SDLC structure was defined including the creation of an AFI BA team, an AFI Forms & Rating development function (key cost areas), and an AFI Support team. Operational metrics and reporting were established to drive continuous improvement and SLAs. Hosting was negotiated to a long-term model effectively capping expense to volume which had been linear. Finally, an annual plan and management structure was created to accommodate annual filing workload, vendor resource management, and annual platform upgrades.
AFI commenced the GWIN Migration Program in 2011. By 2018, only four states had been implemented for the core Homeowners (HO) and Condo (CO) lines of business with each new state requiring 4-6 months and more than $300K to implement. In 2018, AFI invested $1.1M to implement three new HO and CO states with a total Program expense of $2.2M (including support and hosting). By 2021, AFI implemented eleven new HO and CO states at a cost of $440K along with a 200% increase in Support ticket volume at a total Program cost of $1.4M. Per state HO and CO implementation costs are below $40K and Support costs have been reduced by 300% to align with AFI’s strategic investment plan. Importantly, AFI now has a cost benefit framework to analyze each additional state as well as remaining lines of business. Moreover, total cost of ownership for the new platform fits within the annual IT budget.