A useful first budget for replatforming one mid-market insurance line is about $375,000 to $1.4 million before ongoing support. The number moves with policy data, claims logic, partner integrations, and the length of the parallel run.

If you need a first planning number, use $375,000 to $1.4 million for one mid-market line of business. That is wide on purpose. An insurer moving a clean policy system with a few connections is not buying the same project as an insurer untangling decades of claims rules, agent feeds, billing interfaces, and audit history.

This is a transparent planning model, not a published insurer average. It gives a finance and technology team a useful starting point before discovery turns each assumption into a scoped quote.

A mid-market insurance replatforming planning range

Working budget for one line of business

Workstream	Planning range	What changes the number
Application and dependency inventory	$25,000 - $75,000	Program count, documentation quality and hidden batch jobs
Policy and claims data conversion	$50,000 - $200,000	History retained, data quality and reconciliation rules
Partner and internal integrations	$50,000 - $250,000	Agents, payment networks, document systems and third-party data
Application refactor or replacement work	$75,000 - $300,000	Code retained, rewritten or replaced by package configuration
Parallel testing and business reconciliation	$75,000 - $250,000	Products, jurisdictions, claims states and audit evidence
Training, cutover and contingency	$50,000 - $150,000	User groups, cutover window and fallback requirements
Software and infrastructure allowance	$50,000 - $175,000	Target platform, HA/DR design and required tools
Planning total	$375,000 - $1,400,000	One mid-market line of business before ongoing support

This model adds named workstreams rather than pretending an insurer has one standard migration price. It is a planning range, not a vendor quote. Multi-line conversions and replacement of a full policy administration suite can exceed it.

Insurance data and claims rules push the project upward

Policy history must still reconcile

A converted balance is not enough. Coverage, riders, premiums, commissions and effective dates must still produce the same policy result after the move.

Claims cannot disappear during cutover

Open claims keep changing while the new environment is tested. The budget needs repeated reconciliation and a controlled final move, not one export at the end.

Partner connections multiply quietly

Agent portals, payment services, document generation and outside data feeds can cost more to rebuild than the core application move.

Audit evidence has to survive

The new environment must preserve who changed a record, when it changed and which business rule produced the result. That turns testing into a business control.

Choose what actually moves before pricing AS/400 replatforming

Three different projects that are often called replatforming

Project choice	What stays	Cost effect
Move IBM i to hosted IBM Power	Applications and business logic stay on IBM i	Usually the smallest change because the application is not replaced
Modernize the application on IBM i	Core logic and data stay while interfaces, code and development practices change	Cost follows the amount of code and integration work selected
Replace or move off IBM i	Only validated data and selected business rules carry forward	Usually the largest project because software, data and operations all change together

The word replatforming is often used for all three choices. A quote is not comparable until it says which choice it prices.

A credible insurer estimate starts with the current system

IBM's insurance case studies show why the inventory matters. MUDUM had to untangle partner integrations and data spread across several internal tools. BHSF needed two replicated IBM Power environments because claims service could not tolerate downtime. PPS treated regulatory controls as part of the application design rather than a check added at the end.

Those examples do not publish a universal price. They do identify the work that belongs in the price.

Count production programs, batch jobs and scheduled dependencies.
List every policy, billing, claims and commission data store.
Name each outside partner connection and its owner.
Set the history that must remain searchable after cutover.
Define the parallel-run period and the reconciliation rules.
Price the target software, HA/DR and ongoing support separately.

How Much Does AS/400 Replatforming Cost for a Mid-Market Insurer?

A mid-market insurance replatforming planning range

Working budget for one line of business

Insurance data and claims rules push the project upward

Policy history must still reconcile

Claims cannot disappear during cutover

Partner connections multiply quietly

Audit evidence has to survive

Choose what actually moves before pricing AS/400 replatforming

Three different projects that are often called replatforming

A credible insurer estimate starts with the current system

Use the detailed IBM i implementation guides

Data migration scenarios

Customization scenarios

Training and change costs

IBM i HA/DR cost comparison