Need for a Smart Solution: Developing a Sourcing Strategy for a Policy System at a German Insurance Company

Abstract

The direct insurer Gothaer Insurance Group is among the largest insurance companies in Germany. A project started during the 1990s is still facing the task to introduce a policy system for the commercial sector. The project had its origin in a merger with another German insurer and the system has since evolved over about 18 years. The project team encounters manifold technical and organisational issues as well as external factors which have led the project to a state which requires a decision about its continuance. Driven by a new political agenda that fosters the replacement of mainframe solutions and the use of standard rather than in-house solutions, decisions needed to be made concerning the sourcing strategy: should the system be implemented in-house or with the help of an external partner? Should it be realised by standard software or custom development? A steering committee meeting is set up to decide how to proceed. This case chronicles the series of events leading to that upcoming steering committee and the status quo of the system.