TPAs may choose a CMIS or an IIS, depending on whether they also provide program management services. If a TPA were supporting a pool's underwriting, accounting, loss control, and marketing functions, an IIS would be the only reasonable choice. CMISs are typically selected by TPAs, self-administered public entities, corporations with large retentions to administer, and pools that administer members' claims but do not underwrite the business. IISs are typically found at TPAs that provide program management, including underwriting, policy issuance, loss control, etc. Managing general agents, insurers, large pools, and captives also will need the capabilities found in this type of system.
Prices vary widely between the systems and are affected by the amount of customization required.
Most buyers are misled by initial prices quoted for the various applications because they do not understand licensing arrangements and the need for customization or additional services. The need for adaptations to the application to accommodate specific business needs can considerably add to the delivered cost. ERPSs range substantially higher and typically include implementation and customizations costs in the site license. Conclusion Planning is everything. Buying the application that meets immediate needs but lacks scalability or the capability for future expansion can be a costly mistake.