Providers of insurance policy administration systems have recently undergone significant consolidation. Some of the most familiar names have merged with, or been acquired by, other players during the last two years. As a result scattered older systems are being integrated onto modern single one-dimensional platforms.Choosing a provider for an insurance policy administration outsourcing can be a complex task. Companies must scrutinize their own strategic processes before starting to evaluate vendors. Technical questions such as the feasibility of assimilation with other systems-including customer relationship management or enterprise resource planning must be considered. Concerns over integration of IT enabled systems may also be present.Yet as intimidating as outsourcing of insurance policy administration systems may seem, the potential benefits far any legitimate concerns. The modernization of core legacy systems can give companies access to a far more flexible and integrated modern data base design than before. Advances in service-oriented architecture and other component-based technology have enabled cost-effective, compliant and exceedingly sophisticated infrastructures.