Date of Conferral

2015

Degree

Doctor of Business Administration (D.B.A.)

School

Business Administration

Advisor

Ronald McFarland

Abstract

Enterprise system replacement projects within the property and casualty insurance industry are costly, high-risk undertakings that carry a significant risk of project failure. The decision to replace policy administration systems for companies with over $250 million in direct written premium is a multimillion dollar investment for corporate strategic decision makers. This study examined the financial impact of enterprise policy administration system replacement in the property and casualty insurance industry by comparing financial performance results for companies that performed policy administration system replacements with those that did not. Insurance industry financial results for the years 2009 through 2014 were used for the analysis and examined in a quantitative quasi-experimental study using repeated measures MANOVA with 6 levels for US companies with over $250 million in 2009 direct written premiums. This analysis showed that enterprise system replacement was not financially significant for revenue growth or operational efficiency. This finding suggests that system replacement should not be used as a financial growth strategy for organizations, although other justifications for system replacement may make replacement beneficial. Additional research is recommended to determine whether financial performance gains seen in 2014 for companies performing system replacements carry into future years, or whether particular companies with positive performance results following system replacement employed strategies that could be generalized across the industry. This study promotes positive social change by informing sound financial decision making and investment by insurance companies, thereby improving their financial health and stability.

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