Gain insight into the varying levels of performance across open or closed products in your portfolio. FutureFirst Product Scorecard is a powerful analytics tool that sheds light on the risk, cost, value, and complexity of each product–determining the most beneficial direction for you to take going forward. Get to the heart of the most critical factors in deciding block disposition.
“The NEOS product-based scoring method informed us to adjust our strategy for centralizing all of our products. Instead of investing millions in accommodating closed products, we used their ‘surgical approach’ to execute cost effective strategies, taking the burden off the core modernization teams and allowing them to succeed. Their approach saved us tens of millions in expense.”
— SVP/CIO, U.S. Life Division, Global Life Insurance Company
Insurance portfolio modernization begins with legacy product evaluation, and not every product is befitting of a single modernization solution. The FutureFirst Product Scorecard digs into the objective metrics of individual product blocks and provides a holistic view with actionable insights to answer the question of what to do with each block. Usually achieved in a matter of weeks vs. months (or years), the process is efficient, effective, and yet flexible to your strategic business mandates.
We take a surgical approach to collecting intensive product data–from the number of products and policy counts, to the types and quantities of service requirements and requests. We prioritize objective data over subjective information. We understand that not all decisions are made by numbers alone, so the scorecard allows for lens-based weighting, which accommodates for corporate product, market, and sales strategy. The product inventory also considers technology and operational risks associated to the block–for a truly holistic view.
We apply our proprietary method and focus on the objective metrics of an insurance block, which include actuarial, service, and technology characteristics. Scoring is reached based on risk, cost, value, and complexity per product. We use a score to both measure the product performance against what it was anticipated to do and to benchmark the product against others in the portfolio.
The score can be used to determine a viable disposition for each product–whether to divest or outsource the products to a third party, roll up and/or redesign, sunset, migrate to a new platform, etc. We have helped our clients by doing this product analysis first, before spending millions on technology modernization to accommodate products that should not move to a new platform. With this data, you can direct any or all activities, control the spend on modernization, and get the results your business needs.
Gain a more accurate financial estimate before a large investment is made in moving a product to a new IT system–and determine the ROI of not migrating.
Understand service impacts on a block basis–bring clarity into operational and service efficiencies when moving a block to a new platform, BPO, or divestiture.
Base your decisions–for the most cost-effective and viable method of consolidating the business and IT portfolio–on insights gained by analysis of extensive data often hidden in legacy systems.
Establish priority for a block of business, and if deemed worth converting, begin a modernization roadmap. Determine dependencies between blocks, systems, interfaces, and operations to create a likely conversion roadmap based on priority and desired impact. Provide a better chance of successful conversion by simplifying custom mods.
The method should be consistently repeated and become a given component of governance going forward, to assess the health of your evolving portfolio.