ibm 2010-04-11 insurance framework detailed-v4
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Integrated Solution Offerings for Insurance
IBM Insurance Framework
Detailed Overview
April 2010
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I t s t h e HOW !
Insurance Solution Delivery1
Session Objectives
A p p r o a c h
IBM Insurance Framework2
I n s u ra n c e F ram ew o r k S o lu t i o n s Componentized, Extensible, Configurable3
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Insurers are finding new business models
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.as business challenges become more dynamic
Speed-to-market issues delaying competitive responses
Inflexible and expensive core legacy systems
Increased partnership and col laboration across stakeholders
Customers desire increased product / service differentiation
Emergence of new players and distribution channels
Issues of regionalization, specialization & standardization
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Insurers know WHAT to do.need help with the HOW
Enable LOB to execute businessstrategies and decisions
Make it easy & quick to solve current
business problems
Reduce the volatility of risk withdynamic control points
Consistent & cohesive businesspolicies, processes & decisions
Complex Agile
Unstructured Aligned
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I t s t h e HOW !
Insurance Solution Delivery1
Session Objectives
A p p r o a c h
IBM Insurance Framework2
I n s u ra n c e F ram ew o r k S o lu t i o n s Componentized, Extensible, Configurable3
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An Integrated Approach to address Insurance NeedsIBM Insurance Industry Framework
IBM Software
Insurance Solutions / Applications
Insurance Methods, Archi tecture, Patterns
Insurance Accelerators & Assets
Solution for a specific pain-point, implemented by IBM andbusiness partners
Improve time-to-value Make standards consumable
Reduce implementation risk
Ease of interoperability with
legacy & 3rd party apps
Servers, Networking, Storage,Cloud Computing
IBM Dynamic Infrastructure
Integration, Collaboration,Information, Software Delivery,Analytics, Service Management
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Insurance Framework SolutionsIBM Insurance Industry Framework
Integrated Risk
Management
Customer
Care and
Insight
IBM
Insurance
Industry
Framework
Core Insurance
Transformation
Distribution
Customer Retention &
Growth
Single View of Customer
Insurance Financial Planning &
Performance
Insurance Fraud Analysis &
Prevention
Solvency II Compliance
Insurance Operational & IT Risk
Smart Claims
Agile Policy Admin istration
Insurance Product
Development
Insurance Executi ve Insight
Insurance Work Optimization
Insurance LegacyTransformation
Underwriting Optimization
Agency Collaborat ion
Insurance Self-Service
Insurance New Bus iness
Streamlining
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How does an Insurer use the Insurance Framework
Insurance-specificpatterns to provideconsistency acrosssolutionsLeverage insurancestandards basedassets, methodologiesand architecture topromote reuse acrosssolutions
Consistency & Reuse
Pre-built insurance assetsreduce cost of developmentCommon reference architectureand proven methodologies ensurereduced risk in solution delivery
Reduced Risks & Costs
Never start from scratch,with pre-built acceleratorsAssets certified and
tested on IBMs industry-strength software
Improved Time-to-Value
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Smarter Business Outcomes
Reduced time to provide new products to the market Increased sales by allowing agents faster access to information Improved information access for all the stakeholders through multiple channels Improved customer service by enabling end users to utilize self-service options Increased internal efficiencies through redesigned workflows
Client Challenges
Globalization has led to the entry of newcompetitors into the Indian market; this Indianinsurer needed greater flexibility in theiroperations and processes to be able to
compete
Solution
Created an insurance virtual office and self-service infrastructure that provides electronicaccess to policy information to customers,employees, and agents
Case Study:
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Smarter Business Outcomes
Brought 9 new products to market in < one year Reduced application development costs by 50 percent Decreased audit findings by 80 percent Eliminated more than 90 percent of system code
Client Challenges
PPS wanted to improve its ability to respond tochanging customer demands and stiffeningcompetition
The inherent nature of legacy systems had made
application and product development verycomplex, costly and fraught with risk
Solution
Replaced legacy systems with a modularapplication infrastructure and unified disparatepolicy systems
Case Study: Professional Provident Society
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Accelerate SOAsolution delivery withintegrated process,service & data models
Reduce manualintervention to provideefficient XML datamanagement usingACORD standards
DB2 pureXML forACORD templates
Integrate ACORDelectronic forms toreduce manualprocessing
WebSphere InsuranceContent Pack
Implement WebSphereBPM solutions fasterwith pre-built assets
WebSphereTransformation
Extender ACORDPack
Reduce manualintervention and transformdata to ACORD standards
Build components onlegacy systems faster byusing IAA models in anintegrated and agiledelivery platform
Insurance TransformationWorkbench
IAA/IIW
ACORD eForms
(ACORD produc t)
MDM IIWAsset
Integrate standard dataservices with customer datawarehousing capabilities
Insurance Framework Accelerators & Assets
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Physical(Aimed at developers)
Focus on business-IT alignmentIBM Insurance Industry Framework
Logical(Aimed at architects)
Conceptual(Aimed at solution / process owners)
Contextual
(Aimed at LOB, Executives)
Insurance Framework Architecture
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Agent / Br oker
Customer
Partner
Employee
Electronic Business
Gateway
Electronic Business
Gateway
Prospect
Regulator
TextMessage
PhonePDA
Forms
Email
Browser
Process
Services
Visibility
Services
Optimization
Services
Information
Services
Create Quote
Pay Bill
Record FNOL
Process Claim
Pay Claim
Party
Policy
Underwriting
Billing
Claims
Marketing
Package
Legacy
Custom
External
Self-Service
Portal
Contact
Center
AgentPortal
Employee
Portal
Partner
Portal
Analyti csAnal yti cs
PartyParty
ProductProduct
PolicyPolicy
Accoun tAcc oun t
ClaimsClaims
New Business
Policy Servicing
Underwriting
Claim Intake
Claim Servicing
PaymentsBusiness Rule
Services
Vendor / Partner
Systems
Integration Platform
Security
Services
Virtualization
Services
Systems Mgmt
Services
Data
Services
Pre
sentation
Pr
ocesses
S
ervices
Components
Data
Technical Services
Participants
Insurance Framework spans entire solution lifecycle
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Insurance Framework Architecture PatternsExample Content Aggregation
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Insurance Framework Key Facts
Serves Global Needs
Common structure but the
content to be extensible toGeo-specific needs
LOB Focused
LOB-specific defini tions
needed for P&C, Life, Health& Retirement segments
Standards Driven
All insurance frameworkaccelerators and assetsbased on standards
Ecosystem Oriented
Insurers & partnersparticipate in frameworkdevelopment & delivery
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Standards supported by Insurance Framework
The ACORD Framework is the next evolution of standardsdevelopment and a new era in what ACORD delivers to the
insurance industry. The industry is becoming more
diverse and the marketplace more global. The ACORD
Framework represents a single streamlined business
model for standards creation that is flexible enough to
cross lines of business and geographic borders.
IBM Insurance Application
Architecture (IAA)The Insurance
App licat ion Architecture (IAA) is
a comprehensive set of insurance
specific models that represents
best practices in insurance and is
a natural extension to the
Component Business Model.
Under its new vision, IRI will be the authoritative
source of knowledge pertaining to annuities,
insured retirement produc ts and retirement
planning.
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BusinessDictionary
InformationModel
DataModel
CapabilityModel
ProcessMaps
ServiceMaps
Component
Model
Standards (e.g. ACORD) define the WHATIBMs significant contribution to ACORD
Leverages IAAbusiness terms
Leverages IAAprocess maps
Leverages IAAbusiness object
model
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IAA defines the HOWFocus on leveraging models to build new solutions
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Achieve a
simplified
and agile
infrastructure
3
Pick a Framework-based solution
project and implement to deliver a
quick ROI
1
Build on the value of
previous solution
projects and reuse
assets
2
Incremental Transformation with the Insurance Framework
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I t s t h e HOW !
Insurance Solution Delivery1
Session Objectives
A p p r o a c h
IBM Insurance Framework2
I n s u ra n c e F ram ew o r k S o lu t i o n s Componentized, Extensible, Configurable3
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Insurance Framework SolutionsIBM Insurance Industry Framework
Integrated Risk
Management
Customer
Care and
Insight
IBM
Software
Foundation
Core Insurance
Transformation
Distribution
Customer Retention &
Growth
Single View of Customer
Insurance Financial Planning &
Performance
Insurance Fraud Analysis &
Prevention
Solvency II Compliance
Insurance Operational & IT Risk
Smart Claims
Agile Policy Admin istration
Insurance Product
Development
Insurance Executi ve Insight
Insurance Work Optimization
Insurance SolutionTransformation
Underwriting Optimization
Agency Collaborat ion
Insurance Self-Service
Insurance New Bus iness
Streamlining
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Agency CollaborationInsurance Framework Solution, Make-It-Easy-To-Do-Business-With
Any-time, Any-where, Any-way agent / brokers and other intermediarydistribution channels access to insurance carrier
Objectives are to reduce sales and service cycle times by effectively collaboratingwith the distribution channels
Insurance Framework asset
Based on IBM software
Portal and collaborationtechnologies
Benefits
Consistent & reusable set of
assets for Auto & HomeQuote tasks for agencychannel (Process & Servicemodels, Components)
Based on IAA standards
Rich agency tool-kit
Distribution
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Insurance Self-ServiceInsurance Framework Solution, Improve Customer Stickiness
Enables insurers to bring functionally reach portal and websites on linesubstantially faster, with less risk and cost
Objectives are to use online self-service capabilities to help differentiate aninsurers offerings in the marketplace
Insurance Framework assets
Based on IBM software
Portal and Collaborationtechnologies
Integrate & expose legacysystem functions & data(Websphere)
Benefits Consistent & reusable set ofassets for Auto Quote andClaim tasks for consumer self-service (Process & Servicemodels, Components)
Based on IAA standards
Rich consumer interface
Distribution
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Customer Retention & GrowthInsurance Framework Solution, Retain-Create-Grow More Loyal Customers
Focused on increased customer profitability though predictive analytics
By analyzing the results from historical campaigns and products, build models thataccurately predict how likely each individual customer is to accept each offer.
Insurance Framework asset
Based on IBM software
Benefits
Grow profitable revenue and
control underwriting risk. Grow the value of each individualcustomer by reducing/Stabilizinglevels of churn & retaining existingcustomers by providing added valueproducts
Cross-sell and up-sell
Customer Care & Insight
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Single View of CustomerInsurance Framework Solution, Greater insight & market effectiveness
Provides the insurers an integrated view of their customers acrossmultiple business units and information silos
Reduced errors improve efficiency of customer data integration
Based on IBM software
Benefits
Achieve a comprehensive, singleview of the customer to maximizebusiness
Use enterprise-wide mastercustomer data to manage customerprivacy and to manage customerpreferences
Easily handle High ValueCustomer across lines of business
Customer Care & Insight
Single view of
CUSTOMER
ProductAccountLocation
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Smart ClaimsInsurance Framework Solution, Improves Customer Loyalty
Focuses on improving customer retention by providing satisfying, transparent,collaborative and rich claims experience
Objectives are to use self-service tools to lower the cost of managing claims
Insurance Framework asset
Based on IBM software
Benefits
SOA methodology and
architecture modernizes claimsprocessing to over-come inefficientand costly manual claimsmanagement
Process, Service, UI assets(based on IAA models)
Web 2.0 experience
Notify Record Claim Automatic Processing Adjuster Investigation Settlement
Core Insurance Transformation
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Underwriting OptimizationInsurance Framework Solution, Improved operational efficiency & productivity
Focuses on improving the speed, efficiency and quality of decision making whilecreating an optimal underwriting environment for policy issuance
Objectives are to enable underwriters to write policys with the least possibleamount of risk
Based on IBM softwareand ISV applications
Benefits
More accurateprocessing andenhanced decision-
making, Improved underwritingcollaboration andcustomer responsiveness
Simple managementof exceptions (e.g.auditing).
Core Insurance Transformation
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Agile Policy AdministrationInsurance Framework Solution, Componentized policy administration solution
Focuses on end-to-end policy administration for Life, Health, Annuity with aflexible rules-driven approach and simpler integration
Objectives are to significantly improve speed-to-react to business changes
Based on IBMs industry-strength application server,database and rulestechnologies
Benefits
Access anytime andanyplace
Reusable functions andservices reduces cost for andtime for customization
Based on historicalbusiness logic & experiencesfrom existing customers ofthis solution
Core Insurance Transformation
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Insurance Executive InsightInsurance Framework Solution, Blueprint for executive business control
Focuses on timely effective insight into the operational and financial success inthe areas of Underwriting (New & Renewal Policy Activity), Claims (Incurred,Reserved, Paid / Large), Production (Region, Agency)
Objectives are to provide executives to self-serve their reporting/analyses needs
Insurance Framework asset
Based on IBMs analyticsand information software
Benefits
Ties PerformanceMeasurement to Corporate
Goals & Objectives
Automates MS OfficeExecutive BriefingGeneration & Distribution
Leverages InsuranceInformation Warehousemodels
Core Insurance Transformation
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Insurance Work OptimizationInsurance Framework Solution, Automate Processing of Work Requests
Automate of work tasks which aims at processing of inbound documents andservice requests, combined with optimization of human interactions
Objectives are improve customer responsiveness in case of unstructured input
Insurance Framework asset
Based on IBM software
Benefits
Ability to achieve automated real
time processing thus reducing bothcycle times and operationalexpense
Create a paperless process andreduce the cost of manual handlingand filing
Improved customer response
Input Management Dynamic Work Folder Work Management Automated TaskProcessing Output Management Process Management
Core Insurance Transformation
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Insurance Legacy TransformationInsurance Framework Solution, Meet-In-The-Middle Approach
Collaborative, integrated solution development platform for core insurance that integratesinvolved methods, tools, and assets (IAA, IIW)
Enables a model driven development approach to semi automatically derive andtransform SOA runtime artifacts from CBM insurance maps and IAA models
Leverages InsuranceTransformation Workbench that isan Insurance Framework asset
Based on IBM software , modelsand research assets.
Benefits Engagement Governance Method and Assets Guidance
Automation and assistance in creation/ transformation of engagementartifacts
Discovery / binding with relevantexisting legacy applications
Core Insurance Transformation
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Insurance Fraud Prevention & AnalysisInsurance Framework Solution, Reduce Fraud & Improve Claims Ratio
Provides an agile, fast, effective way to analyze health claims with preciseerror reporting when potential errors are identified
Seamlessly integrates with insurance / TPA applications
Insurance Framework asset*
Based on IBM software
Business Rules and Collaborationtechnologies make it easy toconfigure and extend
Benefits Extensive library of rules and pre-built service models
Based on insurance standards
Collaborative tools for knowledgemanagement around frauds
The error is reported by the
completeness check rule
Integrated Risk Management
* Under development
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Solvency II ComplianceInsurance Framework Solution, Integrated compliance offering
Focuses on achieving compliance with minimal required effort while gaining higherefficiency in risk & finance reporting and rationalization of information systems
Objectives are improve pricing and lead to more value-creating products
Insurance Framework assets
Based on IBM software andpartner applications
Benefits
Fully compliant with the principlesrequired by governance bodies
Provides end-to-end coverage ofall aspects of Solvency II solution
Model & analyze financial riskswith partner applications
Leverages Insurance Information
Warehouse models
Underwri ting Risk Market Risk Credit Risk Asset/Liabili ty Management RiskOperational Risk Liquidi ty Risk
Integrated Risk Management
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Financial Planning & PerformanceInsurance Framework Solution, Improved internal reporting costs & efficiencies
Focuses on eliminating manual, inaccurate and costly internal controls usingconsistent reporting and analysis to support a faster closing process
Objectives are to ensure alignment of performance goals using standard analysis
Packaged analyticalapplication
Based on IBM Software
Benefits Consistent reporting andanalysis from multiple systems
Analysis dimensions includechart of accounts, department,customer, product, vendor,organization, business unit
General Ledger Accounts Receivables Account Payables
Integrated Risk Management
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Insurance Operational & IT RiskInsurance Framework Solution, Improved internal reporting costs & efficiencies
Focuses on increased staff productivity, better operational cost control andimproved quality of service
Objectives are to simplify and streamline operational and IT processes
Based on IBM Software
Benefits
Improve the trustworthiness ofthe processes and technologiesthat make up identity systems
Enhanced ability to deploy newservices and service changesfaster and with fewer errors
Better understanding ofdependencies and relationships
Access & Roles Change Management IT Operat ions
Integrated Risk Management
Service Management PlatformService Management Platform
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