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SIFM 2019Addressing the Tactical & Thinking About the Strategic45 Minutes

•

Charles MattsonSeptember, 2019

What Happened To Closing The Books?

Business Recap: Our Understanding Of Insurance Overall Goals, Problem, Needs.

• Decentralized Structures (+)

• Specialized Niche Knowledge

• Concern for unforeseen risks

• Conservative balance sheets

• Strategic in Cycle Mgt

• Looking at new businesses

• Operate where knowledge is competitive advantage

• Industries/economies w strong margins

• Attractive Global Markets

Business Recap: Our Understanding Overall Goals, Problem, Needs

• Write as much good business as possible.

• Slower growth/ selective underwriting

• Focus on Retention/ maintain disciplined underwriting

• Sacrifice volume for profitability

• Capitalize on market dislocations, create new units for market turn

• Accelerate growth as price adequacy returns

So How?

Decentralization= Silos = Bad #’s, Speed

Growth Pressure = Aggressive Underwriting

New Markets = Increased Regulations & Competition

Trends: Top Priorities for Insurance CFO.

• Better Business Partner

• Performance Driven Culture Based

• Better Analytics Looking Forward

• Regulations

• Interest Rate Environment

• Tax & International

Actuaries See/Acknowledge Problems But Keep Taking On More Responsibility (Source: PWC)

By 2020, automation will

replace 40% of

transactional accounting workAccenture

70% of FP&A are more able

to create robust insights if they have predictive analytics Aberdeen

Only 10% of executives feel

teams have the skills to support the organization’s digital ambitionsAICPA

57% of CFOs say delivery of

data and advanced analytics is a critical capability of tomorrow’s financeEY

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“In today’s highly competitive business environment, companies need more from Finance than accurate financial statements and reports.

They need forward-looking, predictive insights that can help shape tomorrow’s business strategy and improve day-to-day decision-making in real-time.”

Deloitte.

Being Truly Data-Driven Leads to Otherwise Inaccessible Business Opportunities

Now All Companies Can Be Google Fast and Apple Simple and

Millenials demand it.

• Growth & Customer Retention

• Modernization For Operational Efficiency

• Legal & Regulatory

• Talent

But You haven’t retooled…. Hard to Complete, Operate or Deliver Business Value

Look Into Current State

of Your Analytics and

Improvements

• Does your team have specific examples of area’s to improve?

• Performance?

• Accurate Data?

• Flexibility of the system?

• Are current dashboards reflexing the KPI’s you want from the data?

Copyright © 2019 Oracle and/or its affiliates. All rights reserved. |

Being a Better Business Partner

• A comprehensive, integrated suite of financial services analytical applications

• Leverages a common physical data model (=WORK OFF SAME #s)

• Brings Applications and Data together

• Enables consistency and reusability

• Accelerates solution

• Enables agility

Confidential – Oracle Internal/Restricted/Highly Restricted 11

IFRS 17

Agent orCustomer

360

CECL / IFRS 9

Long Duration

Asset/Liability

Mgt

PolicyLevel

Profitability

Anti-MoneyLaunderingFinancial

Crime

UnderwritingNew Markets

Tax &TransferPricing

Advanced FP&A

Analytics

AutomatedRecon

Improved Hedging &Cash Flow

Road Map, Pace Layered, Data Reuse

Common Data Foundation


Working off the Same Number: Breaking Silos of Data and Automating Reconciliation for Data Accuracy


Insurance Data

Foundation

Pre-Built Insurance Data Model Analytics and Reporting

• Reliable and consistent regulatory and operational reporting.

• Reduction and/or elimination of data silos

• Agility

• Data Quality

• Metadata Management

Pre-Built GL Reconciliation

• Ensures consistency between financial (i.e. GL) and analytical data

• Configurable reconciliation between any source and target dataset

• Maker/checker ability for tracing manual adjustments

• Audit Trails

• Automation


IDEA: Customer 360/ Agent Efficiency Driven by Finance

• Understanding, communicating and building relationships with customers has become paramount in insurance

• It all starts with a customer 360

• On a shared date foundation, OFSAA provides solutions for

– Customer/agent insight across the customer lifecycle

– Customer profitability and lifetime value

– Marketing efficiency optimization and profitability

– Enhancement of customer engagements across key products

– Enable successful and informed decisions

– Enable timely customer engagement


Concentric 360-degree views are the new clutch play


Insurance Analytics– Customer 360

Oracle Confidential – Internal/Restricted/Highly Restricted 14

Corporate Performance Analysis

Summary

Quote Performance Analysis

Policy Performance Analysis

Claim Analysis

PerformanceOverview

Line of Business Product Region Producer

Summary Key Facts Line of Business RegionProducer

Performance

Summary

Line of Business Overview

Line of Business

Performance

Product Overview

Product Performance

Key Facts

Claim Handling

Line of Business Product CatastropheSummary

Product

Subject Areas Dashboards

Customer Central –Retail

Customer Central- Retail Policy Central Retail

Customer Central –Commercial

Customer Central- Commercial corporate Policy Central Commercial Corporate


IDEA: Quote Monitoring/Coverage through Geography

IDEA: Better Cash Management


IDEA: Policy Level Profitability & Policy Performance• Trend Reports help in monitoring policy performance through time periods and help to track changes and have a deep dive into focus areas like

growth and attritions


IDEA: Claims Performance Monitoring• Claims dashboards allow to see how claims efficiency against key performance parameters, line of Business, Products, Producers and Regions

• Monitor impacts, extent of loss, damages due to a catastrophe on lines of businesses and products

Copyright © 2019, Oracle and/or its affiliates. All rights reserved. |

IDEA: Anti Money Laundering/ Financial Crime:Transparent, Auditable and Effective Solution

Traceability & Audit360 Degree View of Customer , Account , Transaction & Alert History with Audit log

in a single window

Effectiveness & Efficiency User intuitive Dash Board outlining

effectiveness & Efficiency of transaction monitoring , to reduce False positive

Scenario TransparencyScenario Parameters & Configured values

are Visible with Complete Audit Trail


IDEA: Prepayments and Behavior Modeling

Features:• Use best practice prepayment models,

Create your own matrices, or Integrate with Andrew Davidson (Adco LDM™) model.

• Tune customer behavior for prepayments, price sensitivity and product selection to economic circumstances

• Model indeterminate maturity products with behavior patterns

Benefits:• Accurately reflect how customer behavior

changes in different environments and the influence to your bottom line

• Measure your exposures and test methods of mitigating excessive risks

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IDEA: Market Rate and Economic Scenarios

Features:• Maintain economic assumptions separately to

quickly develop alternative forecasts

• Use exchange rate, interest rate, and economic indices in creating forecasts

• Use industry best practice Term structure models

Benefits:• Stress testing the balance sheet under

alternative environments is an easy process to execute

• The impact of all economic circumstances (not just market rates) can be readily understood

• Use Term structure modeling to quickly and easily develop thousands of alternative rate paths



IDEA: Prepayments and Behavior Modeling

Features:• Use best practice prepayment models,

Create your own matrices, or Integrate with Andrew Davidson (Adco LDM™) model.

• Tune customer behavior for prepayments, price sensitivity and product selection to economic circumstances

• Model indeterminate maturity products with behavior patterns

Benefits:• Accurately reflect how customer behavior

changes in different environments and the influence to your bottom line

• Measure your exposures and test methods of mitigating excessive risks



IDEA: Cash Flow Engine Features:• Generate customer relationship level cash flows

taking into account caps, floors, lags, discounts, embedded options, and any other unique payment or repricing characteristics

• Accurately model all financial instruments both on and off the balance sheet

• Generate both liquidity and rate risk sensitivity and mismatches

Benefits:• Use all the contractual details of each individual

customer relationship to generate the most accurate gap reports and forecasts as possible

• Sophisticated and exotic financial instruments are modeled accurately and consistently with their behavior

• Liquidity risk is measured consistently with market risk exposures


oracle meeting: addressing the tactical & thinking about ... · idea: customer 360/ agent...

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