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ERPResearch
Financial Services ERP

ERP Software for Insurance

Insurance companies must manage complex policy lifecycles, actuarial reserving, claims processing, reinsurance accounting, and regulatory reporting across multiple lines of business. Modern insurance ERP platforms integrate policy administration, billing, claims management, and financial accounting in a single system, while supporting IFRS 17 insurance contract accounting, Solvency II capital requirements, and state-level regulatory filings.

Compare ERP Systems for Insurance

Select up to 4 ERP vendors to compare side by side. Filtered to show systems with strong insurance capabilities.

Key Challenges for Insurance

1

Implementing IFRS 17 insurance contract accounting including measurement models (GMM, PAA, VFA) and reconciliation to prior IFRS 4 results

2

Managing complex reinsurance arrangements (quota share, excess-of-loss, facultative) and automating ceded premium and loss calculations

3

Consolidating financial results across multiple lines of business, legal entities, and currencies with accurate segment reporting

4

Maintaining actuarial reserve accuracy through dynamic loss development factors and IBNR (incurred but not reported) reserve calculations

5

Automating high-volume claims intake, adjudication, and settlement workflows while detecting and preventing claims fraud

6

Meeting Solvency II (EU) and state RBC (US) capital adequacy requirements with real-time solvency ratio monitoring

7

Integrating disparate legacy policy administration, billing, and claims systems that accumulate technical debt and impede digital transformation

Best Insurance ERP for SMBs

Recommended for companies with $10M–$250M revenue and 10–200 employees.

Applied Epic

mid-range

Leading agency management system for independent insurance agencies and brokers, covering policy management, accounting, and client servicing

Best for: Independent insurance agencies and brokerages

Vertafore AMS360

mid-range

Cloud-based agency management platform for mid-size personal and commercial lines agencies with strong carrier connectivity and commission accounting

Best for: Mid-size insurance agencies with multi-line books

Sage Intacct

mid-range

Best-in-class cloud financial management for back-office finance at small-to-mid insurance carriers, agencies, and managing general agents

Best for: Small carriers and MGAs needing robust financial consolidation

Duck Creek Technologies

mid-range

SaaS policy administration, billing, and claims platform purpose-built for P&C insurers with configurable product engines and state regulatory compliance

Best for: Regional and specialty P&C insurers

Majesco

mid-range

Cloud-native insurance platform covering policy, billing, claims, and analytics for mid-size P&C and life insurers pursuing digital modernization

Best for: Mid-size insurers replacing legacy administration systems

NetSuite

mid-range

Cloud ERP providing multi-entity financial management, revenue recognition, and statutory reporting for small carriers and insurance holding companies

Best for: Small insurance holding companies and MGAs

Best Insurance ERP for Enterprise

Recommended for companies with $250M+ revenue and complex multi-site operations.

Guidewire InsuranceSuite

enterprise

Industry-standard enterprise platform combining PolicyCenter, BillingCenter, and ClaimCenter for large P&C insurers with proven global deployment track record

Best for: Large P&C insurers and global specialty carriers

SAP S/4HANA for Insurance

enterprise

Enterprise ERP with insurance-specific IFRS 17 accounting, reinsurance management, and multi-entity consolidation via SAP Group Reporting for large carriers

Best for: Global multi-line insurers requiring integrated ERP and regulatory reporting

Oracle Insurance Policy Administration

enterprise

Comprehensive life and annuity policy administration platform from Oracle with strong IFRS 17 and actuarial integration capabilities for large life insurers

Best for: Large life insurers and annuity writers

FIS Insurance Risk Suite

enterprise

Actuarial modeling, capital management, and regulatory reporting platform for Solvency II and IFRS 17 compliance at large insurance groups

Best for: Large insurers and reinsurers with complex capital requirements

Essential ERP Capabilities for Insurance

Policy lifecycle management including quoting, binding, endorsement, and renewal across multiple lines of business

IFRS 17 insurance contract accounting with support for GMM, PAA, and VFA measurement models

Reinsurance accounting automation for treaty and facultative arrangements including ceded premium and loss calculations

Actuarial reserving integration with IBNR calculation, loss development triangles, and reserve adequacy reporting

Claims intake, adjudication, settlement, and subrogation workflow automation

Solvency II and NAIC RBC capital adequacy calculation and regulatory submission

Commission accounting and producer compensation management across agency networks

Multi-entity general ledger with statutory and GAAP reporting for multiple legal entities

Fraud detection and analytics integration across claims and underwriting workflows

Regulatory filing automation for state insurance department submissions and NAIC annual statements

Insurance ERP Cost Ranges

SMB

$50,000–$300,000

10–50 users

Implementation: $100,000–$500,000

Mid-Market

$300,000–$2,000,000

50–300 users

Implementation: $500,000–$5,000,000

Enterprise

$2,000,000–$20,000,000+

300+ users

Implementation: $5,000,000–$60,000,000+

Implementation Considerations

1

IFRS 17 implementation requires close collaboration between actuarial, finance, and IT teams to align measurement models with system configuration; this workstream alone can take 12–18 months

2

Policy administration system replacements involve migrating legacy policy data that may span decades of historical records; data quality remediation is consistently the most time-consuming activity

3

Integration between the policy administration system, claims system, billing system, and general ledger must be architected carefully to avoid data discrepancies in financial reporting

4

State regulatory compliance requires the policy administration system to maintain rate, rule, and form filings for each state of operation; verify vendor update cadence for regulatory changes

5

Change management for underwriters and claims adjusters transitioning from legacy workflows is a primary adoption risk and requires dedicated training and process re-engineering investment

Frequently Asked Questions

What is IFRS 17 and how does it affect insurance ERP selection?

IFRS 17 is the international accounting standard for insurance contracts that replaced IFRS 4 in January 2023. It requires insurers to measure insurance liabilities using current estimates, a risk adjustment, and a contractual service margin (CSM). ERP systems must support all three measurement models (GMM, PAA, VFA), calculate and amortize the CSM, and produce IFRS 17-compliant financial statements. Vendors like SAP, Oracle, and FIS have built dedicated IFRS 17 modules.

Should an insurer choose a best-of-breed policy administration system or an integrated ERP suite?

Most mid-to-large insurers use a best-of-breed policy administration platform (Guidewire, Duck Creek, Majesco) integrated with a financial ERP (SAP, Oracle, or Sage Intacct) for accounting and consolidation. This approach provides deeper insurance-domain functionality than an all-in-one suite but requires careful integration architecture. Smaller carriers and agencies often find an integrated platform more cost-effective.

How do insurance ERP systems handle reinsurance accounting?

Insurance ERP platforms with reinsurance modules automate the calculation of ceded premiums, ceded losses, and reinstatement premiums based on treaty terms. They maintain a treaty register, allocate gross losses to reinsurance structures, and generate settlements statements for reinsurers. Oracle Insurance, SAP FS-RI, and specialist platforms like Sapiens ReinsurancePro provide enterprise-grade reinsurance accounting.

What is Solvency II and which ERP systems support it?

Solvency II is the EU regulatory framework for insurance companies that sets capital requirements, governance standards, and reporting obligations. ERP platforms must calculate the Solvency Capital Requirement (SCR), Minimum Capital Requirement (MCR), and produce Quantitative Reporting Templates (QRTs) for the relevant supervisory authority. SAP S/4HANA, Oracle Financial Services, and FIS Insurance Risk Suite are leading platforms for Solvency II compliance.

How are claims fraud detection capabilities integrated with insurance ERP?

Modern insurance ERP platforms integrate with specialist fraud detection engines such as FRISS, Shift Technology, and SAS Fraud Management via API or native connectors. These engines apply machine learning models to flag suspicious claims during intake and adjudication. The ERP workflow routes flagged claims to a Special Investigations Unit (SIU) for manual review before payment approval.

What actuarial integration capabilities should an insurance ERP provide?

An insurance ERP should accept actuarial loss reserve inputs from systems like ResQ, Milliman ARIUS, or Excel-based actuarial models and post IBNR and IBNER reserves to the general ledger automatically. For IFRS 17, the ERP must consume CSM and risk-adjustment outputs from the actuarial system and manage the contractual service margin roll-forward each period.

How long does a Guidewire InsuranceSuite implementation take?

A single-line Guidewire PolicyCenter, BillingCenter, or ClaimCenter implementation for a mid-size insurer typically takes 18–30 months. A full InsuranceSuite implementation across multiple lines of business at a large carrier commonly spans 3–5 years with phased rollouts by product line or geography. Guidewire Cloud deployments on AWS typically have faster go-live timelines than on-premise deployments.

Can small insurance agencies use an ERP system effectively?

Yes. Small agencies benefit most from agency management systems (AMS) like Applied Epic, Vertafore AMS360, or EZLynx combined with a cloud accounting platform like Sage Intacct or QuickBooks Online. These systems handle policy records, commission tracking, client management, and financial reporting without the cost and complexity of enterprise insurance suites designed for carriers.

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