everest group peak matrix™ for insurance third party ......⚫mike lawrie, president & chief...

Copyright © 2019 Everest Global, Inc.

This document has been licensed for exclusive use and distribution by DXC Technology

®

™

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EGR-2019-28-E-3023

Everest Group PEAK Matrix™ for Insurance

Third Party Administrators (TPAs)

Focus on DXC Technology

January 2019

2® Copyright © 2019, Everest Global, Inc.

EGR-2019-28-E-3023

Introduction and scope

Source: Everest Group (2019) unless cited otherwise

Everest Group recently released its report titled “Insurance Third Party Administrator (TPA) – Service Provider Landscape with

Services PEAK MatrixTM Assessment 2018.” This report examines the global insurance TPA market and its service provider

landscape. It provides detailed analysis of the capabilities and market impact of TPAs and their relative positions on the Everest

Group PEAK Matrix.

As a part of this report, Everest Group classified 29 TPAs on the Everest Group PEAK Matrix into Leaders, Major Contenders,

and Aspirants. The PEAK Matrix is a framework that provides an objective, data-driven, and comparative assessment of

Insurance TPA service provider landscape based on their absolute market impact and vision & delivery capability

Based on the analysis, DXC Technology emerged as a Leader. This document focuses on DXC Technology’s Insurance TPA

experience and capabilities and includes:

⚫ DXC Technology’s position on the Insurance TPA PEAK Matrix

⚫ Detailed Insurance TPA profile of DXC Technology

Buyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understand the service

providers’ relative strengths and gaps. However, it is also important to note that while the PEAK Matrix is a useful starting point,

the results from the assessment may not be directly prescriptive for each buyer. Buyers will have to consider their unique

situations and requirements, and match them against service provider capability for an ideal fit.

https://www2.everestgrp.com/reportaction/EGR-2018-28-R-2692/Toc


EGR-2019-28-E-3023

Everest Group’s segmentation of TPA services for the

insurance industry includes the following four segments

P&C insurance

⚫ Property insurers

– Motor, home, commercial

property, crop, and other assets

⚫ Casualty insurers

– Third-party or liability and

catastrophe

⚫ Specialty insurers

– Marine, aviation, cyber liability,

surety, crime, financial liability,

museums, body parts, personal

antiques, etc.

L&P insurance

⚫ Life insurers

(individual and group life)

⚫ Providers of annuities and

pensions

Health insurance

⚫ Commercial health insurers

⚫ Blue Cross Blue Shield (BCBS)

insurers

⚫ Government

Notes

⚫ There are multiple operating-model alternatives, ranging from internal shared services / Global In-house Centers (GICs) to third-party outsourcing. This

report focuses primarily on the third-party models

⚫ This report covers industry-specific BPO within the insurance space. It does not include a coverage of horizontal business processes such as F&A, HR,

procurement, and contact centers

Insurance TPA services

Workers’ compensation1

⚫ Self-insured employers

⚫ Insurers

⚫ Excess insurance model

1 Workers’ Compensation is generally considered a part of the P&C Insurance space. Due to aspects of Workers’ Compensation spanning across P&C, Life, and Health Insurance, and its

large proportions of TPAs’ business portfolio, it has been considered as a separate LOB in the insurance industry


EGR-2019-28-E-3023

™

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Everest Group PEAK Matrix™Insurance Third Party Administrator (TPA) – Service Provider Landscape with

Services PEAK Matrix™ Assessment 2018 | DXC Technology positioned as Leader

Everest Group Insurance Third Party Administrator (TPA) – Service Provider Landscape with Services PEAK Matrix™ Assessment 2018

Leaders

Major Contenders

Aspirants

Vision & capability

(Measures ability to deliver services successfully)

Mark

et

imp

act

(Measure

s im

pact cre

ate

d in t

he m

ark

et)

High

Low

Low High

NTT Data

CognizantEXL

DXC Technology

Corvel

Crawford

Sedgwick

York Gallagher Bassett

UMR

Meritain HealthMcLarens

One Call

WNS

CoreSource

Helmsman

Barnett Waddingham Infosys

Capgemini

Concentrix

HealthSmart

ESIS Charles Taylor

SE2

Zenith American

Athens Administrators

PMA Companies

AIMS1

AdminSure

LeadersMajor Contenders

Aspirants

1 Acclamation Insurance Management Services (AIMS)

Notes: Assessment for traditional TPAs, except for Crawford, excludes their inputs on this particular study and is based on Everest Group’s estimates, which leverage Everest Group’s

proprietary Transaction Intelligence (TI) database, ongoing coverage of these TPAs, their public disclosures, and interaction with buyers


EGR-2019-28-E-3023

DXC Technology | Insurance TPA profile (page 1 of 7)

Overview

Insurance TPA 2015 2016 2017

Revenue (US$ million) Not disclosed

Number of FTEs 3,653 3,653 4,923

Number of clients 34 36 40

Recent acquisitions and partnerships

2016: Acquired Xchanging Plc. to strengthen technology and business process

services for the global insurance industry

2017: DXC Technology was formed by the merger of CSC and the Enterprise

Services business of Hewlett Packard Enterprise in April 2017

Recent developments:

⚫ 2017: Expanded the BPS framework to include digital technologies

⚫ 2015: Developed in-house process to offer insured access and operations

support and staff augmentation on carrier's in-house system

⚫ 2014: Added new offerings for startup carriers for the residential property

market

⚫ 2013: Enhanced BPS infrastructure, productivity tools, and software

⚫ 2013: Expanded mobility capabilities

Company overviewDXC is a provider of next-generation IT services, solutions, and BPO services. As a leading independent, end-to-end IT services company, it is well-positioned to lead digital transformations, creating greater value for clients, partners, and shareholders. It has 130,000+ employees in more than 70 countries, serving nearly 6,000 clients. It uses global talent, next-generation IT solutions, and extensive partner relationships to help clients. Its extensive partner network helps it drive collaboration and leverage technology independence. It has established more than 250 industry-leading global partner network relationships, including 14 strategic partners – Amazon Web Services, AT&T, Dell/EMC, HCL, HPE, HP, IBM, Lenovo, Micro Focus, Microsoft, Oracle, PwC, SAP, ServiceNow, and insurance-specific partners such as Scope Technologies, Milliman, and 360Globalnet.

Key leaders

⚫ Mike Lawrie, President & Chief Executive Officer

⚫ Phil Ratcliff, Vice President and General Manager

⚫ Kevin Murray, General Manager, Life & Annuity BPS

Headquarter: Tysons, Virginia, the United States

Website: www.dxc.technology

Suite of services:

⚫ Policy administration including intermediary services

⚫ New business management

⚫ Delegated underwriting

⚫ Market wordings library

⚫ Claims management

⚫ Customer services

⚫ Business analytics

⚫ Incentive management

⚫ Reinsurance

⚫ Digital extensions – robotics, self-service, and cognitive computing

http://www.dxc.technology/


EGR-2019-28-E-3023


Key delivery locations – Life & Wealth

Irving

Vadodara

JacksonvilleNashville

East Hartford

Cape Town

Indore

Blythewood

Manila

Noida


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Capabilities and key clients

1 Buyer size is defined as large (>US$10 billion in revenue), medium (US$5-10 billion in revenue), and small (<US$5 billion in revenue)

Note: Based on contractual and operational information as on December, 2017

Key Insurance TPA engagements

Client name Region Client since year

Brighthouse Financial North America 2017

Leading Insurer C North America 2016

MetLife (closed block) North America 2016

Leading insurer A North America 2015

MetLife (direct) North America 2013

Leading insurer B North America 2007

Swiss Re North America 1995

Insurance TPA FTE split by

delivery location

FTEs in numbers

100% = 4,923

Insurance TPA revenue by buyer

size1

Revenue in US$ million

100% = Not disclosed

25%

35%

40%

Large

Small

Medium

Insurance TPA revenue mix by service

lines covered


Insurance TPA revenue mix by

geography


100% = Not disclosed100% = Not disclosed

Not disclosed Not disclosed42%

54%

4%

Offshore

Onshore

Other


EGR-2019-28-E-3023

Tools Processes covered Year launched Solution description No. of TPA clients

OmniChannel

Digital Insurance

Engagement

Platform

Product development & business

acquisition, policy servicing &

reporting, and claims processing

2017 DXC Technology’s Configurable OmniChannel Digital Insurance

Engagement Platform addresses insurers’ needs for this kind of persona-

designed User Experience (UX) across all channels - including web, tablet

and mobile form factors, voice assistant engagement, and chabot

interaction

3

DXC Assure Policy Product development & business



2017 DXC Assure Policy for Life and Wealth is DXC’s new cloud-based policy

administration platform which is focused on next-generation insurance

products. It is built from the ground up to support fully digital, straight-

through insurance processing from policy acquisition through claims

1

CyberLife Product development & business



1998 CyberLife® is a web-enabled, real-time system that supports both

traditional and non-traditional North American life and annuity products. It

offers full processing, regulatory support, correspondence, billing and

collections, commissions, and financial reporting

36

Wealth

Management

Accelerator

Product development & business



2005 Wealth Management Accelerator is a comprehensive life and annuity

administration system that manages both asset accumulation and asset

disbursement in a single system

25

Customer Service

Accelerator (csA)Policy servicing and reporting 2005 Customer Service Accelerator® is a Web 2.0 software application that

manages increasingly diverse communication channels for consistent

service regardless of the method of contact. All interactions – including

emails, phone calls, web chats, correspondence, and interactive voice

response – are centralized and displayed in a single view, making it easy

to understand the servicing needs at any point of contact

15

New Business

Accelerator (nbA)New business management 2002 DXC's nbAccelerator® streamlines new business capture and submission,

speeds up risk assessment, and automates underwriting decisions

14

PerformancePlus Distribution management and

commissions

2000 PerformancePlus® manages broker arrangements, agent sales channels

and hierarchy complexities, as well as the full range of product offerings. It

gives insurers the ability to accurately and efficiently calculate

commissions, offer easy adjustment processing, and provide full audit

trails documenting all transactions

19

Note: The above list is only illustrative and not exhaustive


Technology solutions/tools


EGR-2019-28-E-3023



Automation solutions/tools


Cognitive

automation

solutions in

partnership with

IBM Watson

Policy servicing & reporting and

claims processing

2016 Cognitive automation 4

Automation

solutions in

partnership with

Blue Prism

Policy servicing and reporting 2016 Robotic process automation 6


EGR-2019-28-E-3023


Analytics solutions/tools


STARS Policy servicing and reporting 1999 DXC's Life and Wealth TPA third-party workflow system (AWD) feeds a

DXC-developed Service Level Reporting System (STARS) to produce

accurate metrics on quality performance. STARS monitors and reports

BPO processing progress against established service levels. STARS

measures work items to defined quality SLAs and then calculates service

attainment levels. Service level reports are generated and used to monitor

and proactively manage the status of all work on a real-time basis

37



EGR-2019-28-E-3023


Everest Group assessment – Leader

Market impact Vision & capability

Market adoption

Portfolio

mix Overall

Scope of services

offered

Innovation and

investments Delivery footprint

Vision and

strategy Overall

Measure of capability: High Low

Strengths Areas of improvement

⚫ DXC, a TPA entity arising out mergers and acquisitions between CSC,

HPE, and Xchanging, is the only BPS-heritage TPA to feature amongst

the Leaders on the TPA PEAK Matrix. Owing to its large clientele across

buyer sizes and across P&C, L&P, and Healthcare, it is positioned very

robustly in the market

⚫ It has very strong technology capabilities with platforms for each of the

insurance segments it caters to – CyberLife for L&P, Xuber for P&C, and

Xuber Health for the Health Insurance segment. It also has a robust suite

of augmentation solutions to aid the delivery of TPA services

⚫ It has a well-balanced delivery mix, with adequate onshore presence to

deliver judgment-intensive work and substantial offshore presence to

manage transactional pieces

⚫ Its current focus is on the markets in North America and the United

Kingdom. It should explore the possibility of expanding its presence in

some of the emerging geographies such as Europe, Australia, and Asia,

beyond just focusing on the legacy ones

⚫ Given the fact that it has capabilities in L&P,P&C, and Health Insurance

management, Workers’ Compensation, which can be viewed as a

combination of liability, health, and life, is one of the logical adjacencies

to foray into

⚫ It should further strengthen its capabilities on the RPA, AI, and analytics

front to be able to position itself as a strong digital-transformation

partner


EGR-2019-28-E-3023

Appendix


EGR-2019-28-E-3023

™

®

Everest Group PEAK Matrix

Vision & capability

Measures ability to deliver services successfully

High

Low

Low High

Leaders

Aspirants

Ma

rke

t im

pa

ct

Measure

s im

pact cre

ate

d in t

he m

ark

et

Everest Group PEAK Matrix™ is a proprietary framework

for assessment of market impact and vision & capability

Major Contenders


EGR-2019-28-E-3023

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Services PEAK Matrix™ evaluation dimensions

Measures impact created in the market –

captured through three subdimensions

Market adoption

No. of clients, revenue base, and

YOY growth, deal value/volume

Portfolio mix

Diversity of client/revenue base

across geos and type of

engagements

Value delivered

Value delivered to the client

based on customer feedback and

transformational impact

Vision and strategy

Vision for the client and itself;

future roadmap and strategy

Scope of services offered

Depth and breadth of services

portfolio across service sub-

segments / processes

Innovation and investments

Innovation and investment in the

enabling areas, e.g., technology

IP, industry/domain knowledge,

innovative commercial

constructs, alliances, M&A, etc.

Delivery footprint

Delivery footprint and global

sourcing mix

Measures ability to deliver services successfully.

This is captured through four subdimensions

Mark

et

imp

act

Vision & capability

Major Contenders

Leaders

Aspirants


EGR-2019-28-E-3023

FAQs

Does the PEAK Matrix™ assessment incorporate any subjective criteria?

Everest Group’s PEAK Matrix assessment adopts an unbiased and fact-based approach (leveraging service provider / technology vendor RFIs and

Everest Group’s proprietary databases containing providers’ deals and operational capability information). In addition, these results are validated /

fine-tuned based on our market experience, buyer interaction, and provider/vendor briefings

Is being a “Major Contender” or “Aspirant” on the PEAK Matrix, an unfavorable outcome?

No. The PEAK Matrix highlights and positions only the best-in-class service providers / technology vendors in a particular space. There are a number of

providers from the broader universe that are assessed and do not make it to the PEAK Matrix at all. Therefore, being represented on the PEAK Matrix is

itself a favorable recognition

What other aspects of PEAK Matrix assessment are relevant to buyers and providers besides the “PEAK Matrix position”?

A PEAK Matrix position is only one aspect of Everest Group’s overall assessment. In addition to assigning a “Leader”, “Major Contender,” or “Aspirant” title,

Everest Group highlights the distinctive capabilities and unique attributes of all the PEAK Matrix providers assessed in its report. The detailed metric-level

assessment and associated commentary is helpful for buyers in selecting particular providers/vendors for their specific requirements. It also helps

providers/vendors showcase their strengths in specific areas

What are the incentives for buyers and providers to participate/provide input to PEAK Matrix research?

⚫ Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment

⚫ Participation incentives for providers/vendors include adequate representation and recognition of their capabilities/success in the market place,

and a copy of their own “profile” that is published by Everest Group as part of the “compendium of PEAK Matrix providers” profiles

What is the process for a service provider / technology vendor to leverage their PEAK Matrix positioning and/or “Star Performer” status ?

⚫ Providers/vendors can use their PEAK Matrix positioning or “Star Performer” rating in multiple ways including:

– Issue a press release declaring their positioning. See citation policies

– Customized PEAK Matrix profile for circulation (with clients, prospects, etc.)

– Quotes from Everest Group analysts could be disseminated to the media

– Leverage PEAK Matrix branding across communications (e-mail signatures, marketing brochures, credential packs, client presentations, etc.)

⚫ The provider must obtain the requisite licensing and distribution rights for the above activities through an agreement with the designated POC at

Everest Group.

Does the PEAK Matrix evaluation criteria change over a period of time?

PEAK Matrix assessments are designed to serve present and future needs of the enterprises. Given the dynamic nature of the global services market and

rampant disruption, the assessment criteria are realigned as and when needed to reflect the current market reality as well as serve the future expectations

of enterprises

https://www.everestgrp.com/research/peak-matrix/peak-matrix-citation-policy/

About Everest Group

Everest Group is a consulting and research firm focused on strategic IT, business

services, and sourcing. We are trusted advisors to senior executives of leading

enterprises, providers, and investors. Our firm helps clients improve operational

and financial performance through a hands-on process that supports them in making

well-informed decisions that deliver high-impact results and achieve sustained value.

Our insight and guidance empower clients to improve organizational efficiency,

effectiveness, agility, and responsiveness. What sets Everest Group apart is the

integration of deep sourcing knowledge, problem-solving skills and original research.

Details and in-depth content are available at www.everestgrp.com.

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everest group peak matrix™ for insurance third party ......⚫mike lawrie, president & chief...

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