ibm 2010-04-11 insurance framework detailed-v4

7/29/2019 IBM 2010-04-11 Insurance Framework Detailed-V4

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2009 IBM Corporation

Integrated Solution Offerings for Insurance

IBM Insurance Framework

Detailed Overview

April 2010


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IBM Insurance Industry Framework

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 !


Session Objectives

A p p r o a c h




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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 !


Session Objectives

A p p r o a c h




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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


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.



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


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



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).



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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



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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


Based on IBMs analyticsand information software

Benefits

Ties PerformanceMeasurement to Corporate

Goals & Objectives

Automates MS OfficeExecutive BriefingGeneration & Distribution

Leverages InsuranceInformation Warehousemodels



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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



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



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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



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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*


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



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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



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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


Service Management PlatformService Management Platform


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Copyright IBM Corporation 2009 All rights reserved.The information contained in these materials is provided for informational purposes only, and is provided ASIS without warranty of any kind, express or implied. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, these materials.Nothing contained in these materials is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, oraltering the terms and conditions of the applicable license agreement governing the use of IBM software. References in these materials to IBM products, programs, orservices do not imply that they will be available in all countries in which IBM operates. Product release dates and/or capabilit ies referenced in these materials maychange at any time at IBMs sole discretion based on market opportunities or other factors, and are not intended to be a commitment to future product or featureavailability in any way. IBM, the IBM logo, Cognos, the Cognos logo, and other IBM products and services are trademarks of the International Business MachinesCorporation, in the United States, other countries or both. Other company, product, or service names may be trademarks or service marks of others.

ibm 2010-04-11 insurance framework detailed-v4

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