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THE INSURANCE SUPPLY CHAIN

Today’s dynamic and interconnected insurance business landscape has led to complex supply chains spanning across continents, increasing the number of potential points of failure as global threat vectors such as cyber risks become more and more sophisticated.

SUPPLY CHAINS ARE AT THE FOREFRONT OF REGULATORY AGENDA

CONTACT US AND LEARN MOREMohit Manchanda (Head of Insurance, UK and EU) mohit.manchanda@exlservice.com +44.7958.400.440

Prashant Chaturvedi (VP and Leader, Finance Transformation) prashant.chaturvedi@exlservice.com +44.7899.022.926

Prakhar Agrawal CIPT, CISM,CISA (Practice Director, GRC) prakhar.agrawal@exlservice.com +44.7913.123.672

EXLSERVICE.COM | ©2020 EXLSERVICE HOLDINGS, INC. ALL RIGHTS RESERVED

Managing Third Parties from Risk to Resilience

DO YOUR THIRD PARTIES STRENGTHEN OR WEAKEN YOU?

Whether you are a carrier, broker, or any other party in the insurance value chain, supply chain resilience is a critical element of overall operational resilience.

What can firms learn from this current situation and ensure

they are better prepared for future disruptions?

MANY INSURANCE FIRMS LACK CONTROL OVER THEIR SUPPLY CHAIN

There is no centralised view or visibility into third

and fourth parties

Current processes are fragmented, manual, and rely

on complex spreadsheets

Limited insights and analytics are available around supplier

risk and performance

Citing that supply chains are among the leading causes of operational disruptions, regulators are enforcing rules and guidelines for insurance firms to effectively manage risks posed by third and fourth parties

Standardised information

gathering questionnaires

Automatically build third-party

inventory via smart data harvestin

g

from survey questionnaires

Rich library of assessment

questionnaires based on

leading standards

Automatic response

evaluation and risk scorin

g

Centrally monitor all

issues and collaborate on

remediation or risk acceptance

Pre-populate information fro

m

past assessments and review

only what’s changed

Rapid deployment:

showcase ROI, then scale

up for your wider needs

Accessible to third

parties with no loss of

information in emails

Dynamic workflows to

mimic (or enhance) your

existing processes

Assess inherent risk,

residual risk and overall

supplier criticality

Initiate one-tim

e or

a recurring schedule

assessments

Follow up with onsite

or remote audits

Pre-contract due diligence and onboarding

Inventory creation and maintenance

Risk assessments and due diligence

Issue management and remediation

Ongoing monitoring and audits

OUR RISK & COMPLIANCE CENTER OF EXCELLENCE

• Over 3 million hours delivered

BEST-IN-CLASS TECHNOLOGY • Deep automation, analytics

and ease of use

INSURANCE DOMAIN EXPERTISE WITH 650+ CLIENTS GLOBALLY

• Leader & Star Performer (“Everest Group PEAK Matrix® 2020)

OUR TPRM* SOLUTION

This results in lack of confidence in a supplier’s continued ability to support firms’ critical business services

OUR SOLUTION DIFFERENTIATORS

[ [

Retail brokers Aggregators

MGAs and delegated

authorities CarriersReinsurance

brokers ReinsurersLost

adjusters TPAs

Cloud and hosting providers

Outsourcing partners

Technology partners

Facilities suppliers

InsurTech firms

List goes on...

The PRA1 and the FCA2 expect insurance firms to comply with a wide range of requirements throughout the lifecycle of their third party arrangements. EIOPA3 and EBA4 bring much needed rigor to outsourcing, cloud and data security.

The implications of not doing the adequate due diligence for supply chain are massive. Whether there is a disruption or a data breach, BIG BRANDS PAY THE BIG BUCKS.

COVID-19 is acting as a catalyst for insurance firms to exercise more control over their third and fourth parties and enhance overall resilience.

EXL brings together risk and compliance expertise, deep insurance domain knowledge and best-in-class technology to provide clients with a HOLISTIC SOLUTION to effectively manage this transition.

SUBJECT MATTER EXPERTISE

OUR THIRD PARTY RISK MANAGEMENT SOLUTION

Seamless collaboration and audit trails

BEST-IN-CLASS TECHNOLOGY PLATFORM

Real-time reporting and MI

Measurable risk insights at vendor,

product, or portfolio levels

Analyse trends and

performance and do peer

comparisons

EFFECTIVE THIRD-PARTY GOVERNANCE IS A COLLABORATIVE EFFORT

Our solution brings together all relevant parties on a common platform to provide for an integrated effort and allow the seamless exchange of information

MAKE SUPPLY CHAIN YOUR STRENGTH. SCHEDULE A DEMO TODAY.

Governance and

accountability

Record-keeping (outsourcing and cloud

registers)Pre-contract due diligence

Contractual agreements and clauses

Risk assessments and audits

Specific risk mitigation (concentration risk and

vendor lock-in)

Exit planning Sub-outsourcing and intra-group

outsourcing

K E Y R E Q U I R E M E N T S F O R I N S U R A N C E F I R M S

Third parties

Procurement and third- party risk

BCP/DR and resilience

Business operations

Data protection and legal

Information security

Risk and compliance

audit

Supplier relationship

managers

• Enterprise-level control and visibility: no more silos

• Tremendous efficiencies and reduced costs of managing third-party risk

• Granular risk intelligence to drive decision making

• Better compliance preparedness

• Powerful UI for third parties to share information

KEY BENEFITS

1. PRA - Prudential Regulatory Authority 2. FCA - Financial Conduct Authority 3. EIOPA - European Insurance and Occupational Pensions Authority 4. EBA - European Banking Authority

* Third Party Risk Management

RAPID AND MODULAR• Preloaded content libraries

and modular constructs

COVID-19 is already highlighting the widespread uncertainties caused by supply chains and the reactive approach firms usually take towards them.