making a difference in driving optimal insurance results · documaker server oracle documaker...
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Copyright © 2012, Oracle. All rights reserved.
Making a difference in
driving optimal Insurance
results
21st May 2013
Glenn Lottering – Senior Director
Copyright © 2012, Oracle. All rights reserved. 2
The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.
Safe Harbor Statement
Copyright © 2012, Oracle. All rights reserved.
Agenda
• Top level commitment through the
organisation to the customers
• Insurance products complementing the
core banking products
• Specialised sales force for more complex
advised solutions
Copyright © 2012, Oracle. All rights reserved.
Top Business Drivers for Insurance Industry
Underwriting Gain (Loss), 1975–2011*
Source: LIMRA
Underwriting losses in
2011 is the largest since
2001
* Includes mortgage and financial guaranty insurers.
Sources: A.M. Best, ISO, Insurance Information Institute
Q: In what ways could you offer more value to your clients if you were
not limited by your current IT systems?
Source: Oracle Insurance
Industry Survey, 2011
Source: Deloitte Solvency II Survey, 2011
-$55
-$45
-$35
-$25
-$15
-$5
$5
$15
$25
$35
75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 1011*
Copyright © 2012, Oracle. All rights reserved.
• Banks will spend in excess of US$50B to address the risk management platforms
• Insurers will spend in excess of US$30B to address the risk management platforms
• New capital and liquidity regulations will take 10-15% of annual IT spend
• Regulatory Requirements will force a rebalancing of business focus
• Reserve risk management continues to dominate the conversation in Insurance
• Few insurers have instituted climate change models
Enterprise Risk
Financial Services Trends
• Fewer of the Top 100 banks have cost to income ratios under 50%
• Banks with streamlined back-office “factories” at 25-50% of original unit costs
• While increasing revenue is the number one primary goal for all insurers, they expect to be able to reduce expenses at the same time
Operational Efficiency
• E7 countries drive revenue growth for Tier 1 Institutions
• Deposits to grow in excess of US$100T • Revenue in NA for P/C and Life will be
relatively flat • Insurers are looking for alternative markets • Commercial insurance leading property
insurance in US
Revenue Growth
• Social media is playing a key role in profiling and enabling intelligence for customer interactions
• Embedding the services in the Financial Supply Chain
• Ovum predicted online banking, and it turned out to be, the fastest growing segment in 2012 rising 5.3% to reach US$8.3B by end of the year
Customer Experience
• ICB Ring Fencing of UK Banks • The Dodd-Frank Act • Account Portability • Solvency II • Basel III • FATCA • IFRS 4 and GAAP • Data Protection Act • Retail Package – Consumer protection
regulations affecting
Compliance to Regulations
• In an effort to fight flat industry revenues, insurers are investing in distribution management to enable growth
• 2009 FinTech study estimated customer acquisition costs between US$140 (online) to US$350 (in branch)
• Multi-channel is being embraced with cross channel management as essential
Distribution Management
5 | © 2012 Oracle Corporation. Confidential. Not for Circulation.
Copyright © 2012, Oracle. All rights reserved.
Insurance Market Dynamics
OPERATIONAL EFFICIENCY
• Rapidly develop and deliver profitable and compliant products
• Expand and align distribution channels to serve new and existing profitable markets
• Streamline policy life cycle to reduce operational costs while increasing customer satisfaction
• Regulatory capital and risk requirements (Regulators implementing Solvency II)
• Global accounting standards (IASB, IFRS 4, GAAP)
• Managing catastrophes and market turmoil
• Retail Distribution Review (RDR)
• Data Protection
• “Retail Package” – Consumer Protection
• IT simplification & system consolidation
• Legacy modernization & process simplicity
• 360° views of customer and business
Life, P&C,
Benefits & Health
Insurance
Copyright © 2012, Oracle. All rights reserved.
Leveraging the opportunity Deploying an adaptive enterprise
Manage your business effectively, transparently, and securely
Proactively manage efficiency and distribution
Improve transparency and
embed risk management
Accelerate go to market
<Insert Picture Here>
Challenges for Insurance
Changing customer
expectations due to the real
time world
8
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
What Happens in an Internet Minute?
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
Source: Intel, http://www.intel.com/content/www/us/en/communications/internet-minute-infographic.html
9
Multi Channel Communications P
UB
LIS
HIN
G T
RE
ND
S
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
10
Two-Way
Old World was One Way and Slow
New World is Two Way and Real Time
RE
AL T
IME
DA
TA
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
11
Social and Real Time Alerts R
EA
L T
IME
PU
BL
ISH
ING
For example:
Customer
satisfaction
Closer
relations
Lower cost to
serve
12
Analytics and BI Required Everywhere
FO
CU
S
For example:
Customer usage
Demand
mapping
Troubleshooting
Lifetime value
TCO
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
13
Blurring of EDA, ECM and Collaboration E
DA
& E
CM
TR
EN
DS
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
14
Managing the Customer Experience C
US
TO
ME
R E
XP
ER
IEN
CE
For example:
Inform Customers
e.g. Regulatory
Changes
Offer Self Service
for usage
eSignature
For example:
Identify Abnormal
activity
Offer Alerts
Solvency and
Churn
For example:
Analytics to
support customer
profiling
Guided problem
resolution
Solve Problems
© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.
15
Copyright © 2012, Oracle. All rights reserved.
About Oracle Insurance
• Dedicated Insurance team
• End-to-end Insurance solutions • Sales and service
• Administration and claims
• Financials and Human Capital Management
• Enterprise infrastructure
• Deep Insurance domain expertise
20 of the top 20
Fortune 500 insurers use Oracle applications
Copyright © 2012, Oracle. All rights reserved.
Key Insurance Technology Drivers
• Insurance product innovation drives Core Systems
replacement projects across Life & General
Insurance sectors
• P&C projects have a strong rating and underwriting
transformation focus
• Globally, the need to cut operational costs drives
platform consolidation initiatives and data center
consolidation initiatives
• Strong regulatory focus on Solvency II and Retail
Distribution drives investments in core and
analytical platforms
Why Transform?
Copyright © 2012, Oracle. All rights reserved.
Oracle’s Response Investment and Product Innovation for Insurance
Copyright © 2012, Oracle. All rights reserved.
ESTABLISHING ORACLE
INSURANCE AS A GLOBAL
INDUSTRY MARKET LEADER IN
CORE SOLUTIONS
Our Mission Statement
Copyright © 2012, Oracle. All rights reserved.
Oracle Solutions for Insurance Industry
Policy Administration for Life & Wealth Products
Rating for General Insurance Products
Health Insurance Suite
Risk and Performance Management
CRM & Distribution Management
Enterprise Resource Planning
Enterprise Performance Management
Enterprise Document Automation
Operational Business Intelligence
Oracle Billing & Revenue Management
Insurance Data Exchange
Database
Application Server
SOA Suite
Security, Privacy & Identity Management
Business Process Management
Business Rules Management
Enterprise Content Management
Master Data Management
Business Intelligence
Self-Service Portals
Operating Systems
Virtualization
Servers
Storage
Copyright © 2012, Oracle. All rights reserved.
Oracle Insurance in the Marketplace
Leveraging its investments in acquisitions, plus the widespread partner network, Oracle is expected to grow its presence in the insurance application market in the coming years.
Kimberly Harris Ferrante, Gartner Analyst
The Insurance Megavendor: New Hopes for Insurance, February 28, 2008
Select Oracle Insurance Customers
Copyright © 2012, Oracle. All rights reserved.
Ora
cle
Healt
h In
su
ran
ce
Pla
tfo
rm f
or
Tra
nsfo
rma
tio
n
Core Solutions
Product Configuration
Claims Pricing
Claims Ajudication
Alternative Reimbursement
Analytics
Supporting Solutions
• Rating
• Billing
• Document Management
Application Architecture for Distribution Management
Partner
Relationship
Management
Rating and
Underwriting
Policy Issue Marketing
Master Data Management
Collaborative Straight Through Processing
Enterprise Service Bus / BPM
Market Segmentation & Lead Generation
Policy Renewal
Sales Force
Automation
Document
Automation Fraud Detection
Real Time
Decisioning
Business
Intelligence Compliance
Integrated Quoting
Regulatory Compliance & Fraud Detection
Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 26 #OracleFSI
Analytical Repository
Analytical Data & Reporting Architecture
Data Dictionary/ Meta Data
Source Systems
Policy Admin
Market Data
Claims
Asset Data
Data Staging
Area
Policy Risk ESG Assets Liabilities Actuarial
Tables
Processing Area
Results Area
Assumptions Data
Analytics
Solvency II
Regulatory
Reporting
Financial
Reporting &
Disclosure
Mgmt.
External Engines/Models
External Calculation Engines
Actuarial
Finance
EL
T
Dashboards
:
Risk
Actuarial
Investment
Manageme
nt
Ad-hoc
Analysis
Financial Adjustments
GL
Balances
Operational Data Bases
Financial Consolidation Engine & QMR
General Ledger
Data Quality
Checks
Manual
Adjustments
Internal Calculation Engine
Calculations
Stresses
Aggregations
Reporting
Results
Asset
Risk
Insbridge RateManager
Oracle Insurance Insbridge
Build and Manage Rates Execute Present
Impact Analysis
Insbridge SoftRater Custom Interfaces
Mainframe
Midrange
UNIX
Agents
Consumers
CSRs
Web/App
Servers
DB2 Oracle
SQL Server ANSI
Supports all major operating systems and databases
Actuaries
Product Managers
Analysts
Quality Assurance
Change Management
Documaker Server
Oracle Documaker Enterprise How it all fits together for next generation document automation
Customer Service Archive
/ retrieval
Business Application Documents
Interactive
Correspondence
End User Web-based Applets
Universal Content Management (UCM)
Oracle Fusion Middleware
SOA Suite: ESB, WS ADF Identity Suite
Systems Mgmt Oracle BPM
ODBC / JDBC
System Management
Dashboard
Analytics,
Reports:
Publishing Job Tracker
Ad
min
istra
tive
To
ols
Word-Based Authoring
Documaker
Studio
Au
tho
rin
g /
Des
ign
To
ols
Oracle 11G Database
Transactional Applications
(Dynamic Data)
App. Server
Pre-built Industry Content
Copyright © 2012, Oracle. All rights reserved.
Revenue Management and Billing for Insurance at a Glance
Insurance Source
Systems
Enrollment /
Eligibility
Policy
Admin
System(s)
Calculation Billing Receivables and
Collections
Journal
Creation
Payment
Applications
Billing
Engine
Invoice
Presentment
Products
Price Lists
Complete Integration and Auditability
Policy
Information
Complete
Invoicing Manage
Receivables
and
Collections
Add’l Billing
Information
(Commissions,
Fees, Taxes,
etc.) Internal
pricing
engines
Record
Accounting
3rd Party Billing feeds
Multi-Currency, Multi-Language
Copyright © 2012, Oracle. All rights reserved.
Consistent Service
Rapid Deployment
Effective Business
Management
Conclusion
• Adapt to new products/channels instantly
• Continuous, real-time audit
• Information access, when and where your channel needs it
• New products with no compromises
• Configurable content
• Business stability and growth in the face of change
Accelerate go to market
Improve transparency
and embed risk management
Proactively manage
efficiency and distribution
Copyright © 2012, Oracle. All rights reserved.
We Invite You to Join the Conversation Connect and Interact with Oracle Insurance
• All Year Long • Follow Us on Twitter – www.twitter.com/oracleinsurance
• Like Us on Facebook – www.facebook.com/oracleinsurance
• Join Our Group on Linked In – www.linkedin.com, and search
“Groups” for “Oracle Insurance.”
• Read our Blog – blogs.oracle.com/insurance
• Social networking provides an engaging way for customers and partners
to interact with Oracle, and offer a community for open discussion.