Fast Insurance Data Migration: 350,000 UL and VUL records converted in 14 months
The Business Challenge
350,000 UL and VUL policies converted to a new policy administration system with minimal impact on customer service.
The company was looking for a turnkey data conversion solution that included modifications, interfaces and conversion services. After more than two years and several iterations, their own in-house study concluded that the job required a three-phase effort totaling 30 months and millions of dollars.
When three major consulting companies were called in, two stated that the timeline was too short and the budget too small. The third simply refused to bid. Then UCT stepped in, with a bid of 14 months and only 75% of the provider's own projected budget.
The first and most difficult phase of the project was converting some 180,000 Variable Universal Life policies from the legacy system over a weekend, with a total of 17 transaction errors out of an excess of two million transactions. That's an acceptance rate of 99.9998 per cent! With 3.9 billion dollars of cash accumulation values converted for 18 variable accounts and one fixed account, the total out-of-balance figure was $1,500, which is within rounding error!
On the basis of this outstanding success, the provider agreed with UCT to combine the second and third phases of the data conversion, allowing them to complete the project even further ahead of schedule, and at a total cost about 35% lower than the original budget projections.
How did it go? The second phase converted over 150,000 policies in a weekend (3,000,000 transactions), of which only 14 processed with errors (5 actual policies). That's a transaction error percentage of .00047.
What's more, the UCT staff accomplished most of their conversion effort off-site, with less than 6% of the total time onsite tying up the provider's resources. That's another hidden savings in the UCT methodology.