oracle in insurance

8/2/2019 Oracle in Insurance

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Insurance SolutionsPresenter’s Name

Presenter’s Title



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



• Leadership in Insurance

• Innovation in Insurance Solutions

• Results Achieved by Oracle Customers

Agenda



Oracle in Insurance Did You Know?

20 of the top 20 insurance companies runOracle Applications

1,000+ insurance companies run Oracle

Applications

12 of the top 15 life insurers in the world run

Oracle Applications



The Challenges We’re Hearing

Grow Business &Optimize Distribution

Grow Business &Optimize Distribution

“How can I increase the effectiveness anddiversity of my distribution channels andpolicy service operations?”

“… the big challenge is now to double our effort and focus on operational excellenceand growth.” -- James Schiro, CEO, Zurich Financial Services, January 2006

Compliance &Regulatory Pressures

Compliance &Regulatory Pressures

“How can my organization meet increasingnational and regional insurance departmentregulatory compliance demands?”

“In early 2005, the four largest brokerage firms negotiated regulatory settlementsconcerning, among other things, their compensation practices. Following theirsettlements, some firms altered their long-standing practices and restructured theiroperations.” - HRH 2005 Annual Report



The Challenges We’re Hearing (cont’d)

Scale Costs & Price

Products to MarketOpportunity

Scale Costs & Price

Products to MarketOpportunity

“How can I improve combined ratios while

providing greater value to our customersand still achieve continuous growth?”

“A chasm is growing between insurers using state-of-the-art analytics and thosewho aren’t… The ‘haves’ will be able to write business at the margins they target.The ‘have nots’ will fall victim to adverse selection…the bar will rise continually ascompetition drives weaker players from the field.”

-- Frank J. Coyne, chairman, president and CEO, ISO - ISOtech, 2006



Industry Quotes

“Oracle’s Siebel Insurance Claims is an interesting choice for amid-size to large insurer. It represents a combination of basic andextended claims functionality-extended with Siebel and Oraclecomponents. It also brings a good deal of prepackagedfunctionality, with rules,scripting, and performance reporting

capabilities.” – Donald Light, Insurance Analyst

"They (Oracle) have been very acquisitive in the last couple years,It's a good move for Oracle, buying both PeopleSoft and Siebel,

in that it does give them that vertical presence.“– Marc Cecere , VP Insurance Practice

“Oracle’s PeopleSoft Enterprise General Ledger provides anestablished, well developed set of capabilities within a broadand deep family of other accounting, financial, human resource,and supply chain applications.”

– Donald Light, Insurance Analyst



Agenda






Oracle Insurance SolutionsBringing a comprehensive, end-to-end solution to the insurance industry

Increase Revenue through Distribution Management andCustomer Service

Enable Flexible and Efficient Policy Lifecycle Management

Improve Corporate Governance through BI and ERM

Provide Efficient and Effective Operational Support

Enable Next Generation Insurance Technology Platform

Business Intelligence

Technology & Architecture

Sales, Service,& Marketing

Core SystemsRisk, Compliance

& PerformanceHCM & Financials



Increasing Revenue through DistributionManagement and Customer ServiceRequirement Oracle Capability The Oracle Difference

Increase Insurers’Understanding of

Customers, Marketand Distribution

Oracle BusinessAnalytics and

Universal CustomerMaster for Insurance

Oracle Offers 140+Insurance-specific Dashboards, 200+

Reports and Objects toAnalyze Key Customer Data

Oracle Manages Agent,Broker, Customer and PolicyInformation Consistently and

Securely Cross Channel

Manage Multiple,Complex Distribution

Relationships

Oracle’s SiebelInsurance Partner

Management

Support Balanced MarketingCampaigns across Agent,

Broker, and Direct Channels,plus Streamline Lead Mgmt

Only Oracle Provides Multi-channel Campaign Support

with Integrated SFA andCustomer Analytics

Oracle’s SiebelMarketing & Siebel

Insurance CRM

Enable Multi-ChannelService for Distribution

Partners and Customers

Oracle’s SiebelCall Center for

Insurance Service

Oracle Enables CollaborationBet. Agents, Call Center andPolicyholders with Real-Time

Decisions for Cross-Sell / Upsell

Example



Example:

Distribution Management

OracleOracle

BusinessBusiness

IntelligenceIntelligence

• Sales Process Mgmt

• Rapid Product Rollout• Sales/Partner

Credentials• Book of Business

Comprehensive Distribution Insight and ManagementComprehensive Distribution Insight and Management

SiebelSiebel

MarketingMarketing

SiebelSiebel

InsuranceInsurance

CRM/PRMCRM/PRM

• Customer

Segmentation• ProgramManagement

• ChannelMarketing

• Results Tracking

• Customer Knowledge

• Channel Profitability• Product Profitability• Market Insight• Insurance

Dashboards

Oracle’s Siebel Marketing

Analytics

Oracle’s Siebel Insurance Oracle Siebel Call Center

Web Services

• Caller Profiles

• Automated ScreenPops

• Interaction Logging• Task-based UI• Manage Escalation• Managed Self-Service

SiebelSiebel

InsuranceInsurance

ServiceService



SOLUTIONS

• Oracle Siebel Insurance

CHALLENGES / OPPORTUNITIES

• Overwhelmed with paper

• Outmoded, paper-based salesprocesses hindered effective

management of sales opportunities• Wanted to improve consistency and

quality of customer service

CUSTOMER PERSPECTIVE

“One customer was delighted recently when,having submitted a claim online, he receiveda call from one of our agents a few hourslater to correct an error made on the form.

It is instances like this that seal ourreputation for outstanding customer service.”

― Johan Reyneke, Managing Director

RESULTS

• Reduced time to transfer leads from bankto brokerage from 3 days to seconds

• Increased penetration for homeinsurance from 15% to 65%

• Increased penetration for motor

insurance from 18% to 40%• Enabled accurate, near time forecasting

• Provided a single, 360-degree view ofcustomer relationships to 200 sales staffand 45 customer service reps

COMPANY OVERVIEW

• Johannesburg, South Africa

• Annual revenue: $10 B




Increase Revenue through Distribution Management andCustomer Service












Enable Flexible and Efficient PolicyLifecycle ManagementRequirement Oracle Capability The Oracle Difference

Support ComplexDirect and Agent Billing

Oracle InsuranceBilling, EBS

Financials, PSFTFinancials, FSAH

Oracle Uniquely IntegratesAccount Current InsuranceBilling, Configurable LapseProcessing, and Insurance-

Specific Accounting Rules

Only Oracle Provides CompletePolicy Lifecycle Component

Solutions Deployed on a

Modern, Enterprise Architecture

Rapidly Issue andAdminister Insurance

Policies

Oracle’s Policy AdminSystem for Life, P&C,

and Reinsurance

Reduce Claims Expensewhile Improving Customer

Interaction Experience

Only Oracle Personalizesthe Claims Process andReduces Cost throughProcess Improvement

OracleInsurance Claims,Content Services

Support Integrated,Auditable, PaperlessEnterprise Business

Processes

BPM, BEPL, BusinessProcess Analysis Suite,

Content Services,Identity Mgmt, App Server

Oracle Provides the MostComplete ACORD-Compliant

Toolkit to Deploy Secure, Stable,Business Oriented SOA ACORD

Architectures For Insurers

Example:



Example:

Policy Lifecycle Management

Oracle PolicyOracle Policy

AdministrationAdministration

• Sales Process Mgmt• Rapid Product Rollout• Sales/Partner Credentials• Book of Business

OracleOracle

InsuranceInsurance

BillingBilling

EndEnd--toto--End Insurance Policy Lifecycle ManagementEnd Insurance Policy Lifecycle Management

OracleOracle

Customer DataCustomer Data

ManagementManagementSiebel InsuranceSiebel Insurance

• Maintain hierarchies andcomplex relationships

• Centralize customer data• Scrub customer

information

• Individual & Group Bills• Account Current• Agency Bill• Rules-based lapse• Financial Integration

• New BusinessProcessing

• Policy Issue• Cycle Processing• Flexible policy rules• Financial Integration

Siebel Insurance

Oracle Insurance BillingOracle Customer Data Management

Web Services

Oracle Insurance Policy Administration

Example:



Example:

Enterprise Claims Management

PeopleSoftPeopleSoft

FinancialsFinancials

• First Notice of Loss• Process Management• Fraud Detection• Partner Integration• Claims Resolution

FinancialFinancial

ServicesServices

Acct HubAcct Hub

Relationship Driven, Integrated Claims ManagementRelationship Driven, Integrated Claims Management

Oracle ContentOracle Content

ManagementManagementSiebel InsuranceSiebel Insurance

ClaimsClaims

• Store/Manage Docs• Account Level Retrieval• Enterprise CM Strategy• Compliance Support

• Reserve Management• Detail Transactions• Support Legacy Claims

Systems• Multiple Ledger

Support

• Claims Reserve Accting• Financial Reporting• Claims Performance• Payment & Fulfillment

Web Services

Oracle Content Services

Financial Services Accounting HubFinancials & Performance Management

Oracle’s Siebel Insurance Claims

M t i t M t l



SOLUTIONS

• Oracle Siebel Claims

• Implemented in claims center with 250claims specialist and managers

• Used to manage end-to-end claims processfrom FNOL, to adjuster assignment tosubrogation and legal


• Information scattered across 28 appsresulting in lengthy claims resolution

• Consolidating data from disparatesystems - including claims, billing, andpolicy-management systems - wouldprovide claims unit with a single, real-time

view of customers’ claims file and enableincrease in process automation


“We have seen about $1 million in annualexpense reduction as a result of Oracle’sSiebel Claims Implementation. Some of thebenefits or our implementation are reduce

staff, leakage, paper and improve agent’sproductivity.”

― Dave Kaufman, Senior VP and CIO

RESULTS

• Realized substantial productivity gains

• Reducing process expense (ongoing)

• Closed a branch office and reducedfacilities expense

COMPANY OVERVIEW• Headquartered in Ohio• Revenue of US $1.5B

Motorists Mutual




Increase Revenue through Distribution Management and

Customer Service










C G



Improve Corporate Governance throughBusiness Intelligence & Enterprise Risk Mgmt

Requirement Oracle Capability The Oracle Difference

Provide ActionableCustomer & Product

Profitability Insight

Customer & ProductProfitability Engine

(EPM, OFSA)

Oracle Has a Fully ScalableSolution to Compute Individual

Customer Profitability

Delivered in Operational andExecutive Dashboards

Be the Foundation forRegulatory Complianceto Meet State & Federal

Regulator Needs

BPEL, BPM, InternalControls Manager, ICE,Stellent Content Mgt,

Financial ServicesAccounting Hub

Oracle Delivers the MostComprehensive Platform forDeployment of Transparent,Auditable and Bulletproof

Insurance Processes

Deliver Financial &Operational Business

Transparency

Oracle Business AnalyticsBalanced Scorecard with

Insurance Data Model

Only Oracle providesIntegrated Analytics

Dashboards to Monitor BothFinancials and Real-timeOperational Process withInsurance-Specific KPIs

Example:



p

Compliance, Enterprise Risk & PerformanceExtending business intelligence across the enterprise

Oracle GRCOracle GRC

ManagerManager

• Solvency II compliance• Operation Risk

Modeling• Risk & Compliance

Reporting platform

FinancialFinancial

ServicesServices

Acct HubAcct Hub

OFSAOFSA

ProfitabilityProfitability

ManagementManagement

ReveleusReveleus

Ops RiskOps Risk

• Next generationaccounting rulesengine

• Fully integrated withOracle GL

• Enterprise BusinessProcessManagement\Consolidated data repository

• Embedded internalcontrols

Analytics ServerBI Dashboards Analytic Engines

Databases

Data Warehouse

• Complete profitabilitysuite

• Integrated with risk andfinance solutions

• Multi dimensionalprofitability



SOLUTIONS

• Oracle Risk Manager• Oracle Database

• Deployed In 2003

CHALLENGES / OPPORTUNITIES• Has seen significant growth in the online

car insurance market and has respondedby expanding its range of products andservices

• Effective asset and liability administration

is essential in Korea’s fluctuatingbusiness environment


“Risk management encompasses more than just capital management; it is aboutmanaging overall company value. Thismeans companies need to shift their focus

from short-term profit maximization to long-term value. First Fire & Marine Insurancehas laid the groundwork for valuemanagement by implementing Oracle RiskManager on Oracle Database.“

― Dong-Young Lee, Team Mgr, Risk Mgmt

RESULTS

• Established a stable, secure market riskmanagement system

• Optimized business information and riskmanagement through property and debtanalysis

• Ensured quick response to oversightagencies

COMPANY OVERVIEW• Headquartered in Seoul, South Korea

• Revenue: Over US $100M

First Fire & Marine Insurance





Customer Service










Provide Efficient and Effective



23

Provide Efficient and EffectiveOperational Support

Requirement Oracle Capability The Oracle Difference

Increase Employee /Agent Knowledge and

Retention whileReducing Training Cost

PeopleSoft HumanCapital Mgmt, EBS Human

Resources Mgmt,Learning Management

Oracle’s Leadership andExperience in Learning Mgmt

Reduces Agent Training

Costs and IncreasesAgent Value and Retention

Manage MultipleFinancial Environments

for Multi-lineCompanies Globally

Oracle Financial ServicesAccounting Hub,

Consolidation Hub,Global Consolidations

Oracle’s Unique OfferingCan Help Insurers ManageMultiple Financial

Environments and Multi-PointAdmin System Integration

Manage Statutory and

GAAP Environments toSupport Global InsuranceReporting Requirements

PeopleSoft Financial

Management,EBS Financials

Only Oracle Has theMulti-GAAP/STAT and XBRL

Support Required to MeetGlobal Insurance IndustryReporting Requirements

Example:



24

Enterprise Financials ManagementApplications for the high-performance enterprise

EnterpriseEnterprise

AssetAsset

ManagementManagement

• Automated financialprocessing

• Account for multiple,heterogeneous sources

• Enhance internalcontrols and auditability

OracleOracle

ProcurementProcurement

OracleOracle

BusinessBusiness

IntelligenceIntelligence

EnterpriseEnterprise

Financial MgmtFinancial Mgmt

• Align Operations withCorporate Strategy

• Manage RiskProactively

• Collaborate Acrossthe Enterprise

• Reduce Spend onGoods and Services

• StreamlineProcurement

• Enforce Policy

Compliance

• Improve assetvisibility, tracking,and control

• Optimize assetportfolio management

Subledger

AccountingSubledgerubledger

Accountingccounting

Drr Crr

GeneraleneralLedgeredger Receivableseceivableseceivables Payablesayablesayables

ManualManualEntryEntry

OpenOpenInterfaces /Interfaces /

APIAPI

ExcelExcel(Web ADI)(Web ADI)

SubledgerSubledgerInvoices &Invoices &DocumentsDocuments

OnlineOnlineReconciliationReconciliation

ReportingReporting



25

SOLUTIONS

Oracle E-Business Suite• General Ledger

• Accounts Payable

• Fixed Assets


• Lacked an integrated financial package

• Required huge manual effort tocalculate asset depreciation and other

key financial measures that make upthe expense to premium ratio, critical toinsurance reporting and strategicmanagement planning


“We are examining our internal processesand developing new ways of thinking. Oracleis playing an important role in that process."

― Liz Catchpole, CFO, Life & Health Business

RESULTS

• Reduced manual process and increaseddirect process controls

• Instituted automated payment runs

• Automated expense reporting.

• Reduced training time and costs foraccounting staff

• Redeployed staff to more strategicactivities

COMPANY OVERVIEW

• Headquartered in Zurich, Switzerland

• Revenue: CHF 100 million

• Employees: 9,000

O l I S l ti



26



Customer Service










Enable Next Generation Insurance



Enable Next Generation InsuranceTechnology PlatformRequirement Oracle Capability The Oracle Difference

Secure Customer Dataand Access for Risk andCompliance Reporting

Enterprise Security andIdentity Management

Integrated Data and IdentityManagement for GLBA, Patriot

Act and SOX Compliance

Gain Real-time InsightAcross Channels

Integrated InsuranceKPIs and KRIs from

Multiple Legacy Sources

Business Intelligencefor Insurance

Integrated Service-OrientedArchitecture & ACORD-

based Models for Insurance

Enable New ServicesAcross Product Silos

Service EnabledProcesses andApplications

Selectively ConsolidateLegacy Systems onto

Open Standard Platform

Enterprise GridComputing and

Content Management

Manage Structured &Unstructured Data withScalable and Reliable

Grid Technology

O l F i Middl



28

Oracle Fusion Middleware

Farmer’s Mutual Hail



SOLUTIONS• Oracle Fusion Middleware-based

online portal

• Implemented with help from Cisco


• Needed to provide a more efficient,simplified process to grant policyholdersand insurance agents secure access topolicy information

• Manual transactions were time-intensiveand raised operational costs

CUSTOMER PERSPECTIVE“Cisco and Oracle Fusion Middlewareenabled us to automate business processesand increase security by providing our policyholders and agents with an automated self-

registration process.”― Ron Rutledge, VP, Information Services

RESULTS

• Provide agents and customers direct

access to policy information• Deliver self-service and customerprovisioning to users

• Consolidated existing businessprocesses

• Improved security, enhanced efficiency

and reduced cost through automatedaccess privilege management

• Integrated disparate workflows into asingle, visible and easily extensiblebusiness process

COMPANY OVERVIEW• Headquartered in West Des Moines, Iowa

• Revenue: $224 Million

• Employees: 207

Farmer’s Mutual Hail

Solutions Map – Overall View

Oracle Solution Footprint



ISV PartnersOracle

Corporate Administration

Indirect

ProcurementCPM

Facilities

Management

Human

ResourcesProjects CompensationFinancials

HR IT

Helpdesk

Front Office Support

Customer ServiceSales Force AutomationMarketing Automation

ClaimsProcessing

Analytics

Sales Marketing Channel

Enterprise Performance Mgmt

Financial & Risk Planning

Operations Procurement

Claims

Insurance Operations

Policy

Administration

Vendor Mgmt.

& Procurement

Reinsurance

Management

Product

Development

Distribution

Management

New Business

Regulatory

Reporting

Investment

Management

Payments

& Disbursements

Strategic

Planning

Billing &

Collections

Partner Management

Business Process Analytics

J2EE Services, ESB and Rules Engine

IT Infrastructure

Business Activity Monitoring Rich Client Framework (AJAX, Web 2.0)Analytic Services, Portal & Dashboards

Enterprise Content Management

Web Services Orchestration (BPEL)Web Services Management

Access MgmtDatabase [Grid, Memory, Embed] Identity Mgmt

Universal Customer Master (MDM)

Directory SvcsSystems Management

Oracle Solution Footprint

Top to Bottom Support for Insurance



Operating System

Database

FusionMiddleware

Tools / J2EE

Applications

Consulting

Top to Bottom Support for Insurance

#1 Enterprise Software Vendor• ERP, CRM, HR and more

• Most scalable, reliable, secure infrastructure

• Most complete range of on-demand and on-premise

deployment options

Built-In Insurance Capabilities• Customer focused claims management

• Real-time insurance fraud detection

• Insurance analytic dashboards and industry KPIs

• Closed-loop insurance distribution management

• End-to-end insurance process support

Largest Software Support Team• 3,000+ support engineers

• 145+ countries

The Oracle Difference



The Oracle Difference

• Is the leading provider of customer-centric Insurance solutions withcomplete front office agent / broker and customer management supportincluding real-time distribution analytics and book of business support

• Brings true customer-focus to the insurance claims process while providing acomplete front to back claims solution including predictive modeling, frauddetection and reserve/payment management

• Solves the most complex Insurance Billing problems throughintelligent bill reconciliation and rules-based bill management and regulatedarrears processing

• Enables insurers to regulate, audit and manage business processes and

information to meet global compliance regulation

• Provides the comprehensive toolset to deploy real Insurance SOAarchitectures today

Only Oracle…

Agenda



Agenda




What Customers are Achieving



What Customers are Achieving…

Enabled agents to secure 1300 incrementalappointments each week

Increased the percentage of requests closed thesame day by 20% in 12 months

Improved productivity in the claims area by 25%

Reduced costs by an estimated US$15.1 millionby automating manual tasks and eliminatingredundant processes

Oracle Insurance Solutions Summary



Oracle Insurance Solutions Summary

DistributionDistributionManagementManagementand Serviceand Service

GovernanceGovernanceand Complianceand Compliance

EffectiveEffective

OperationalOperationalSupportSupport

Policy LifecyclePolicy LifecycleManagementManagement

Next GenerationNext Generation

TechnologyTechnologyPlatformPlatform

• Manage internal and external distribution networks• Provide insight into distribution profitability

• Enable multi-channel customer service

• Support auditable, automated enterprise business processes

• Provide detailed financial & operational business insight

• Deliver actionable customer & product profitability insight

• Increase agent/broker knowledge & reduce overhead costs

• Deliver financial results in industry formats

• Connect Financials to better measure & monitor results

• Deliver end to end, customer-centric claims management

• Provide enterprise billing and commission managementwith vertical process functionality

• Enable comprehensive business process management

• Accelerate development of new services with a openstandards based insurance platform

• Improve agility with capability to create flexiblecomposite applications