LIFE AND ANNUITY POLICY ADMINISTRATION SYSTEMS

Transcription

1 CEB TOWERGROUP INSURANCE January 2015 LIFE AND ANNUITY POLICY ADMINISTRATION SYSTEMS Technology Analysis Abstract* Sam Stuckal Research Director, Insurance Vendor Assessment and Quantitative Insight Teams *For full copies please contact

2 INSURANCE Executive Director Matt Dixon Managing Director Jaime Roca Program Director Peter Delano VENDOR ASSESSMENT TEAM Senior Director Anne Marie Houston Senior Analyst Atit Amin Specialist Rachel Griffin Research Director Sam Stuckal QUANTITATIVE INSIGHT TEAM Director Jasleen Sindhu Research Analyst Edward MacDonald COPIES AND COPYRIGHT As always, members are welcome to an unlimited number of copies of the materials contained within this handout. Furthermore, members may copy any graphic herein for their own internal purpose. The Corporate Executive Board Company requests only that members retain the copyright mark on all pages produced. Please contact your Member Support Center at for any help we may provide. The pages herein are the property of The Corporate Executive Board Company. Beyond the membership, no copyrighted materials of The Corporate Executive Board may be reproduced without prior approval. LEGAL CAVEAT CEB TowerGroup has worked to ensure the accuracy of the information it provides to its members. This report relies upon data obtained from many sources, however, and CEB TowerGroup cannot guarantee the accuracy of the information or its analysis in all cases. Furthermore, CEB TowerGroup is not engaged in rendering legal, accounting, or other professional services. Its reports should not be construed as professional advice on any particular set of facts or circumstances. Members requiring such services are advised to consult an appropriate professional. Neither The Corporate Executive Board Company nor its programs are responsible for any claims or losses that may arise from a) any errors or omissions in their reports, whether caused by CEB TowerGroup or its sources, or b) reliance upon any recommendation made by CEB TowerGroup. 2

3 EXECUTIVE SUMMARY TECHNOLOGY ANALYSIS SCOPE and METHODOLOGY In response to feedback from our membership, we developed this technology analysis product to identify key components of a policy administration investment decision and effectively compare vendor technology products. Our methodology comes from the knowledge that investment decisions center around the benefit to the individual and enterprise of a technology rather than the feature set alone. This analysis is tailored to reflect the needs of end users, to diagnose the technology attributes particular to a firm, and to effectively identify policy administration systems (PASs) that align with a firm s needs. To that end, we conducted a series of interviews and surveys with financial services executives, industry experts, and vendors regarding PASs. The results of this research formed the basis of our diagnostic anatomy and informed the five-point rating system on which we scored individual products. CURRENT MARKET and FUTURE INVESTMENT Out With the Old, In With the New. Within the life and annuity technology space, modernizing PASs has become a pressing priority for many insurers to ensure their tools and capabilities remain up-to-date. As insurance companies depend on PASs to service the entire policy lifecycle, outdated technology can negatively affect customer satisfaction, employee productivity, and ultimately raise costs for insurers. With 46% of policy systems installed almost a decade or more ago, it makes sense that nearly half of insurers now plan to adopt or replace their technology systems by Our survey results also showed that the value drivers for this wave of investment focused on both base functionality and process improvement. Given the diverse range of life and annuity products offered by insurers, using a structured model to evaluate these core systems is essential to buying the right PASs. Doubling Down on Operational Efficiency and Analytics. Legacy platforms hinder insurers ability to improve front-end service quality, which is highly dependent on back-office operations. As carriers seek to improve both customer satisfaction and operational efficiency, the inability to capture back-office synergies is a top challenge among insurance executives. This is evidenced by the 56% of firms that reported a lack of confidence in their ability to integrate data across the enterprise. However, upgrading a PAS can effectively boost insurers confidence in their ability to integrate data, as this is a key capability of new systems. In turn, data-intensive operational tools, such as predictive analytics, are growing in value and rapidly evolving to meet the needs of PASs. Show, Don t Tell, With Illustration Access. Illustration technology is an increasingly dynamic component within a PASs, showing how policies can build investment value and financial security. While older solutions contain key functions like illustrations and underwriting internally, current practice is to work with a third-party solution that an insurer prefers. Illustration and underwriting integration ensures policies are issued with the same features sold and the same risks accepted regardless of whether the illustration and underwriting data comes from desktops, laptops, tablets, or smartphones. 3

4 EXECUTIVE SUMMARY VENDOR LANDSCAPE AND RANKINGS Life and annuity policy administration systems provide transaction processing, recordkeeping, and valuation for the policy lifecycle including policy issuance, in-force transactions, claims and withdrawals, and policy termination. Furthermore, the profiled solutions support a range of complexity and interface with investment management systems for variable, indexed, and interest-sensitive products. This technology analysis profiles and quantitatively evaluates policy administration systems from Accenture, Andesa Services, EXL, Infosys McCamish Systems, MajescoMastek, Management Data, Oracle, Sapiens, StoneRiver, SunGard, and Vitech Systems Group. This selection focuses on recommendations from our customer base for products that are agile, well-priced, and move away from traditional, old-line solutions. By combining our qualitative and quantitative data from interviews with industry experts, financial institutions, and vendors, we identified 22 attributes that define a best-in-class system. These attributes are grouped into four categories that highlight a firm s user and enterprise needs. Vendor rankings are based on our five-point rating scores on each of the 22 best-in-class attributes. The top vendors were designated as best-in-class performers based on their composite scores in each of the technology categories below. BEST-IN-CLASS TECHNOLOGY CATEGORIES Insurance executives investing in policy administration systems should use the Diagnostic Anatomy to select the vendor that best aligns with their firm s needs and business objectives. POLICY LIFECYCLE includes those attributes that that manage the lifecycle of customer policies from data input to ongoing processing. Leaders include Oracle Insurance Policy Administration and two other products. OPERATIONAL SUPPORT includes those attributes that support adjacent functions including underwriting, product management, and distribution. Leaders include three products. USER EXPERIENCE includes those attributes that evaluate the system s usability and its alignment to an insurer s workflow and reporting needs. Leaders include three products. ENTERPRISE SUPPORT includes those attributes that influence the enterprise s tactical fit, segment focus, and strategic alignment with the vendor. Leaders include Oracle Insurance Policy Administration and two other products. 4

5 DEVELOPING A TECHNOLOGY ANALYSIS Mission Statement: Our technology analysis process provides a customer-driven, transparent, and unbiased review designed to drive informed business decisions. Current Market: Provides a view of industry and customer changes, and best practices for technology investment and implementation. Future Investment: Identifies emerging technologies and innovations. Vendor Landscape: Provides an overview of key vendors, product features, and market position. Product Rankings: Highlights Best-in-Class attributes and shows a comparative perspective of leading products. Technology Analysis Presentation Roadmap Current Market Market Drivers: Assess changes in the industry and customer behavior Future Investment Spending Forecast: Benchmark global and regional policy administration technology spending Emerging Technology Landscape: Pinpoint emerging technologies and innovations Vendor Landscape List of Players: Identify key technology firms and their products Diagnostic Anatomy: Choose your investment priorities with our proprietary framework Feature Audit: Compare the relative feature offerings by vendors Product Ranking Best-in-Class Products: See the top products based on our anatomy categories Ranking Methodology: Review the key components of an investment decision Vendor Profiles: Understand the key differentiators between products 5

6 ROADMAP FOR THE PRESENTATION Current Market Future Investment Vendor Landscape Product Rankings 6

7 MULTICHANNEL SERVICE HINGES ON INTEGRATION To keep up with customer demands, organizations are adding channels and providing more options within existing ones. Across the insurance lifecycle, customers will move across various channels to suit their needs. Personal channels such as the agent or contact center, are preferred for complex activities, while digital channels are preferred for simple insurance interactions. Leading insurers make multichannel service a reality by designing policy administration systems capable of handling policy creation, transitions, and communications across any preferred channel. Channel Preference Across the Policy Lifecycle Percentage of North American Insurance Customers by Channel Preference for Specific Activity, 2013 In-person Online Phone Mobile Mail 2% 3% 2% 9% 3% 3% 22% 30% 37% 23% 20% 35% Policy Issue and Onboarding 25% 38% Policy Transactions 23% 2% 2% 46% Policy Inquiry and Problem Resolution 16% 27% Learn About a Product or Service Purchase Use or Access Receive Customer Support n = 527. Source: CEB 2013 Customer Experience Survey. 7

8 CAPABILITY GAPS LIMIT CUSTOMER RESPONSES Effective provision of multichannel service requires addressing factors that contribute toward inefficiencies and manual work for operations. A majority of executives report legacy systems and business environment collectively drive the creation of manual work in operations processes. In addition, 88% of executives report concern about the effect of manual work on their ability to drive efficiency. Drivers of Manual Work in Operations Processes Percentage of Operations Executives, % Legacy Systems Environment 59% n = 61. Source: CEB 2012 FS Operations Leadership Council Automation Survey. Negative Consequences of the Level of Manual Work Percentage of Operations Executives, % 15% Business Environment Regulatory Environment Customer Demands Ability to Drive Efficiency 88% Ability to Respond to Change 69% Ability to Meet Customer Demand 62% Ability to Manage Risk 57% Ability to Keep Up With Competitors 53% n = 58. Source: CEB 2012 FS Operations Leadership Council Automation Survey. 8

9 ROADMAP FOR THE PRESENTATION Current Market Future Investment Vendor Landscape Product Rankings 9

10 FORECASTING GLOBAL TECHNOLOGY SPEND In response to the ineffectiveness of outdated core systems, insurers are planning to upgrade their PAS. Global Policy Administration Systems Technology Spend In Millions USD, 2014(E)-2019(P) $5,000 Development in the PAS market centers on user enhancements, operational efficiency, and analytics. The market is also seeing particular growth toward flexibility and usability tools that enhance the experience of end users and configuration analysts. $4,800 $4,600 $4,400 $4,200 $4,000 $3,846 $4,092 $4,436 $3,800 $3,672 $3,600 $3,400 $3,414 $3,532 $3,200 $3, E 2015P 2016P 2017P 2018P 2019P Source: CEB Analysis 10

11 ROI Potential EMERGING TECHNOLOGIES IN POLICY ADMINISTRATION Emerging Technology Matrix Low High Cloud and Virtualized Application Platforms Early Stage Real-time Processing Predictive Operational Analytics Enterprise Collaboration Process Management Technology State Data Integration Mobility Interactive Visualizations In Development Workflow Impact Minimal Medium High DEFINITIONS ROI Potential: The relative returns an institution can expect to receive from an investment in the technology Technology State: The technology s level of development Workflow Impact: The level of change the technology will have on current operations and processes Usability and Workflow Process Management: Configurable workflows that automate onboarding, investment actions, and standardize data capture for regulatory compliance (e.g., KYC, AML, etc.). Data Integration: Function that connects disparate recordkeeping applications, core systems, and external data to provide a complete customer view. Enterprise Collaboration: Set of productivity tools that allows internal staff and agents to collaborate on policy files in real-time. Real-time Processing: Feature that integrates external data sources and policy administration through collaborative technologies, including CRM and ECM. Source: CEB Analysis. Emerging Operational Capabilities Interactive Visualizations: Capability that allows for real-time and user-driven selection and representation of data for analysis, decisioning, and workflow improvements. Predictive Operational Analytics: Tools that analyze current and historical client data to predict future outcomes and enable delivery of customized policy services. Mobility: Technology that equips users to interact with the system at all times to eliminate the need for co-location of knowledge workers. Cloud and Virtualized Application Platforms: Flexible software delivery frameworks that include various models of hosted applications, SaaS-based deployments, and virtual platforms. 11

12 ROADMAP FOR THE PRESENTATION Current Market Future Investment Vendor Landscape Product Rankings 12

13 MAPPING THE VENDOR LANDSCAPE Life and Annuity Policy Administration Systems By Date of Initial System Release ID 3 Policy Administration AFAS LifePro ALIP ALIS OIPA FIMMAS V3 System VPAS Elixir North America iworks Compass Selecting Featured PAS Vendors We identified vendors for this analysis based on expert opinion, product maturity, size of installations, and technological innovation. Sources: CEB Analysis, Technology Vendors. 13

14 Operational Support L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY 1 Data Input 2 Underwriting 3 Illustration Access 4 Product Management 5 Issue and Invest 6 Ongoing Processing 7 Data Accessibility The system supports manual, online, and automated input of policy setup data including features and investments. The system supports underwriting functions and systems with data needed for policy decisions. The system can access historical policy illustration data and premium quotes from external tools. The system supports new and updated products with common and innovative features. The system supports policy issuance with common product guarantees and investments. The system supports policy processing (premiums, claims, policy changes, and investment functions). The system makes data easily accessible to functional stakeholders, including employees, agents, and auditors Product Maturity The product is mature in the market and has a steady or growing market share and client base. Vendor Stability The vendor has an established presence, sound financials, and can provide long-term, secure support. Tech Innovation The vendor has a proven innovation track record, a market-leading roadmap, and resources for longterm support. Product Pricing The vendor offers flexible pricing for ongoing support and price discounts for additional purchases. Policy Lifecycle User Experience Security Compliance Deployment Support Geographic Support Analytics Reporting The system provides audit trails, information controls, compliance tools, and roles-based access. Enterprise Support Attribute Grading Current Effectiveness 5 = Superior Capability We or our vendor offer this regularly, systematically, and at the highest standard. 4 = Strong Capability We or our vendor offer this regularly and systematically. 3 = Adequate Capability We or our vendor offer this regularly but in an ad hoc manner. 2 = Marginal Capability We or our vendor offer this irregularly and in an ad hoc manner. The vendor offers on-site, hosted, or cloud options with support during and after implementation. The system provides support for multiple currencies, languages, and other geographic variations. HOW TO USE THIS ANATOMY The anatomy is designed to assist insurance executives to better assess and prioritize components of their technology investment. As you use this anatomy, please consider your firm s business strategy and current technology maturity. 1. Rate the impact of each attribute to your business and your firm s effectiveness on a 1-5 scale using the grading scale below and tally the results using the scorecard. 2. Map the results on the scorecard to identify areas that are most important, but where your firm is least effective. The system collects and analyzes policy data to produce meaningful operational insights to improve processing. Potential Impact 5 = Very High Impact Our firm considers this attribute mission critical when performed at the highest standard. 4 = High Impact Our firm considers this attribute highly important when performed at the highest standard. 3 = Moderate Impact Our firm considers this attribute moderately important when performed at the highest standard. 2 = Low Impact Our firm considers this attribute somewhat important when performed at the highest standard. 1 = Weak or not at all We or our vendor do not do this at all. 1 = No Impact Our firm does not consider this attribute important when performed at the highest standard. The system supports bulk or ad-hoc reporting capabilities for financial, operational, or compliance needs. Dashboards The system presents users with role-specific dashboards displaying key metrics and allowing process actions. 8 Distribution The system supports multiple distribution channels and data interchange with external producer systems. 9 Documents and Forms The system can input, manage, and produce policy documents and forms in hardcopy and digital formats. 10 External Data The system integrates third-party data including investments and financial data supporting features and guarantees. 11 Workflow The system has advanced workflow management to model, automate, monitor, and adjust policies. 12 User Interface The UI is intuitive and configurable with views of transaction entry screens, current, and historical data. 14

15 DIAGNOSTIC ANATOMY SCORECARD Insurance executives should complete this scorecard using the Policy Administration Diagnostic Anatomy tool. Attribute Categories Alignment Attributes Potential Impact 1. Data Input 2. Underwriting Policy 3. Illustration Access Lifecycle 4. Product Management 5. Issue and Invest 6. Ongoing Processing 7. Data Accessibility 8. Distribution Operational 9. Documents and Forms Support 10. External Data 11. Workflow Importance of Improvement User Experience 12. User Interface 13. Dashboards 14. Reporting 15. Analytics 16. Geographic Support Enterprise Support 17. Deployment Support 18. Security Compliance 19. Product Pricing 20. Technology Innovation 21. Vendor Stability 22. Product Maturity 15

16 Potential Impact DIAGNOSTIC ANATOMY SCORECARD Insurance executives should map their attribute scores from rating their impact and effectiveness on the previous page on this matrix to identify the most important areas to their vendor selection. 5 = Very High 4 = High Areas of Focus 3 = Moderate 2 = Low 1 = No Impact 5 = Superior 4 = Strong 3 = Adequate 2 = Marginal 1 = Weak Current Effectiveness 16

17 FEATURE AUDIT DEFINITIONS Feature Definition Line of Business Support Life Insurance Term Life The solution provides support for term life insurance. Life Insurance Universal Life The solution provides support for universal life insurance. Life Insurance Whole Life The solution provides support for whole life insurance. Life Insurance Variable Life Life Insurance Interest-Bearing Cash Value Products Life Insurance Variable Cash Value Products Annuities Deferred Fixed Accumulation Annuities Deferred Variable Accumulation Annuities Fixed Payout The solution provides support for variable life insurance. The solution provides support for interest-bearing cash value products. The solution provides support for variable cash value products. The solution provides support for deferred fixed accumulation insurance products. The system provides support for deferred variable accumulation insurance products. The solution provides support for term fixed payout insurance products. Annuities Variable Payout Life Riders Long-Term Care, Accidental, Death, and Dismemberment Core Policy Lifecycle Dynamic Questions for Data Input The solution provides support for term variable payout insurance products. The solution provides support for long-term care and accidental, death, and dismemberment insurance products. The system supports manual, online, and automated input of policy setup data, including features and investments. Premium Quoting The system supports and automates using policy illustration data and premium quotes for prospective customers. Issue and Invest The system supports policy issuance, investment choices (if applicable), and policy document output. 17

18 FEATURE AUDIT DEFINITIONS Feature Definition Core Policy Lifecycle (continued) Ongoing Processing Data Accessibility Product Management Underwriting The system supports policy processing (e.g., premiums, claims, policy changes, and investment functions). The system makes data accessible to functional stakeholders, including employees, agents, and auditors. The system supports new and updated products with common and innovative features and guarantees. The system supports underwriting functions and systems with data needed for policy decisions. Operational Support Distribution Forms/Document Library Forms/Document Generation Customer Information Search Historical Customer Data Storage Rules Engine Internal Process Management External Process Management Audit Trails Pre-Integration with Third-Party Data Providers The system supports multiple distribution channels and data interchange with external producer systems. The system has a library of common forms and documents, including industry standards (e.g., ACORD) and data exchange standards (e.g., XML). The system has capabilities to enable generation of standard or custom documents and forms. The system allows authorized users to search for current and historical customer information, including as-of searches. The system stores historical customer information to allow carriers to track changes over time. The system has a built-in rules engine that allows rules creation, editing, testing, and analysis. The system has built-in BPM (or links to external BPM) capabilities that allow creation, editing, testing, and analysis of process automation. The system uses an external BPM solution with capabilities that allow creation, editing, testing, and analysis of policy administration process automation. The system keeps a record of the sequence of activities that have affected each policy file in the system. The system is pre-built with interfaces to load in data from common third-party data providers, including MIB or credit rating agencies. Feature Definitions: Native Feature: Contained in the base package of the solution provided solely by the firm Premium Feature: Only available at an additional cost or as an addition to the base package of the solution, and is provided solely by the firm. Partner Feature: Only available at an additional cost or as an addition to the base package of the solution, and is provided by a third-party firm. 18

19 FEATURE AUDIT Feature Audit for Oracle Oracle Insurance Policy Administration Line of Business Support Core Policy Lifecycle Operational Support Life Insurance Term Life Dynamic Questions for Data Input Distribution Life Insurance Universal Life Premium Quoting Forms/Document Library Life Insurance Whole Life Issue and Invest Forms/Document Generation Life Insurance Variable Life Ongoing Processing Customer Information Search Life Insurance Interest-Bearing Cash Value Products Data Accessibility Historical Customer Data Storage Life Insurance Variable Cash Value Products Product Management Rules Engine Annuities Deferred Fixed Accumulation Underwriting Internal Process Management Annuities Deferred Variable Accumulation External Process Management Annuities Fixed Payout Audit Trails Annuities Variable Payout Pre-Integration with Third-Party Data Providers Life Riders LTC, Accidental, Death, and Dismemberment Offered Native To Be Offered in Next 12 Months Offered Premium Offered Partner To Be Offered in Next 24 Months Not Currently Offered and No Plans 19

20 ORACLE INSURANCE POLICY ADMINISTRATION ORACLE Company Overview <$100 Million Key Statistics Company Type: Public Year Founded: 1977 Headquarters: San Francisco, CA Number of FTEs: 115,000+ Distribution of Clients by Net Premiums Written $ Million $ Billion Sources: Oracle, CEB Analysis. >$10 Billion N/A N/A N/A N/A Distribution of Clients by Region 0-4% 20-39% 60-79% 5-19% 40-59% % Oracle is a global supplier of software, hardware, engineered systems, and related consulting and support services for more than 380,000 customers in 145 countries. Within the Financial Services Global Business Unit, the company s insurance suite, Oracle Insurance, serves over 1,000 insurance companies worldwide through its integrated set of applications, all of which are rules-based, adaptive, open, and secure. Product Overview Acquired in 2008 from Adminserver, the rebranded Oracle Insurance Policy Administration (OIPA) is a fully configurable modularized solution for group, individual, and new business needs, serving Tier 1 and 2 life and annuity and pension carriers. Recent upgrades have been made to OIPA including a new release of the Oracle Insurance Calculation Engine, entry into multiple lines of business through the release of Group Insurance and Worksite products, and further integration of OIPA into the Oracle Insurance ecosystem through Oracle BPM and Oracle Documaker. While OIPA is currently a predominant on-premise solution, roadmap initiatives are underway to make it a cloud-enabled product for all customers by its next upgrade. Product Highlights Rules Palette: OIPA does not require any programmatic changes as all the rules and logic are built using the Pallete, a GUI configuration tool that uses drag-and-drop functionality, allowing the user to define and customize rules. The same logic can be applied to underwriting, product management, audit trail, and other components of OIPA. This means that coding is required to implement various regulations and their local specificities, so that carriers can maintain the platform independently or through a partner of their choice. Oracle Documaker: Native integration with Oracle Documaker enhances the ability to deliver out-of-thebox reporting. By automating the document lifecycle, Documaker creates, manages, and delivers adaptive communications. With its fully configurable integration and migration tools, Documaker also eases conversions from legacy systems to address the design, production, and multi-channel delivery of a broad spectrum of documents. Oracle Business Intelligence: That OIPA comes fully integrated with any BI solution provides the user with analytical tools to further generate on-demand reports. In particular, Oracle Business Intelligence is a standards-based platform that enables building enterprise-wide BI solutions. It features a unified and highly scalable architecture that provides intelligence and analytics from data spanning sources and applications. CEB TowerGroup View Oracle s talent for enterprise application development and support is strongly evident in the transformation of the Oracle Insurance Policy Administration solution. Most evident is the expansion of features, particularly across the policy lifecycle category that displays Oracle s ability to listen to the insurance market and respond effectively. Initiatives are already underway in the Current Release +1 product roadmap to strengthen areas like dashboards and analytics that were identified as gaps. 20

21 ROADMAP FOR THE PRESENTATION Current Market Future Investment Vendor Landscape Product Rankings 21

22 Differentiator ATTRIBUTES Strong Priority Mission Critical CATEGORIES CREATING OUR BEST-IN-CLASS PRODUCT RANKINGS Phase 1 Utilizing qualitative and quantitative data, we identified 22 attributes that define a Best-in- Class Policy Administration System, which are grouped into four categories. Policy Lifecycle Those attributes that manage the lifecycle of customer policies from data input to ongoing processing. Operational Support Those attributes that support adjacent functions including underwriting, product management, and distribution. User Experience Those attributes that evaluate the system s usability and its alignment to an insurer s workflow and reporting needs. Enterprise Support Those attributes that influence the enterprise s tactical fit, segment focus, and strategic alignment with the vendor. Phase 2 Recognizing that all attributes are not equally important, we divide them into tiers to reflect their level of importance as mission critical, strong priority, or differentiators. Data Input Data Accessibility Illustration Access Product Management Underwriting Ongoing Processing Distribution Document and Forms External Data Geographic Support Reporting Product Pricing Vendor Stability Deployment Support Technology Innovation Phase 3 Certain products are recognized as Best-in-Class after scoring each product based on its performance at an attribute level. Issue and Invest Workflow Analytics Dashboards User Interface Product Maturity Security Compliance Best-in-Class Policy Lifecycle Best-in-Class Operational Support Best-in-Class User Experience Best-in-Class Enterprise Support Source: CEB Analysis. 22

23 PRODUCT RANKING MATRIX Insurance executives should use the ranking matrix in combination with the PAS Diagnostic Anatomy to select the provider that best aligns with their firm s needs. Vendor rankings are based on our five-point rating system for each of the 22 attributes in our Policy Administration Systems Diagnostic Anatomy. Listed Alphabetically by Vendor, Scale Vendor Oracle Product Oracle Insurance Policy Administration Policy Lifecycle = Best-in-Class in Anatomy Category Operational Support User Experience Enterprise Support Vendor A Product A Vendor B Product B Vendor C Product C Vendor D Product D Vendor E Product E Vendor F Product F Vendor G Product G Vendor H Product H Vendor I Product I Vendor J Product J This graphic was published by CEB as part of a larger research report and should be evaluated in the context of the entire report. CEB Technology Assessment research is a qualitative evaluation of a set of vendors in a specific market; it is NOT a stack ranking. Source: CEB Analysis. CEB does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to select only those vendors with the highest ratings. CEB and CEB TowerGroup research publications consist of the opinions of its research analysts and should not be construed as statements of fact. CEB Disclaims all warranties of commercial viability or fitness for a particular purpose.

24 BEST-IN-CLASS ACHIEVEMENTS FOR ORACLE Oracle received Best-in- Class achievements in the Policy Lifecycle and Enterprise Support categories. Policy Lifecycle includes those attributes that that manage the lifecycle of customer policies from data input to ongoing processing. Enterprise Support includes those attributes that influence the enterprise s tactical fit, segment focus, and strategic alignment with the vendor. Category Policy Lifecycle Enterprise Support Scoring Analysis As an off-the-shelf, fully configurable PAS, OIPA provides full recordkeeping and support for all policy lifecycle transactions, including policy issue, billing, collections, policy processing, and claims. In particular, Oracle Insurance Data Capture, which can be embedded within OIPA or utilized as a portal in the client s environment of choice, is a customizable tool that provides reflective questioning for data input. OIPA integrates into the current workflow solution of the client. All the rules and logic for the PAS are built using drag-and-drop functionality in the Rules Palette. If the client does not have an existing workflow tool in place, OIPA is offered with Oracle Business Process Management to provide the workflow aspect of underwriting and case management. On top of being an industry leader in terms of features and technology, OIPA possesses a significant market share and a growing client base scattered across multiple regions, backed by a company whose long-term prospects are financially sound. With insurance regulations, such as KYC, AML, and Suitability Standards, having a material effect on operations, the ability for a PAS to provides audit trails, information controls, compliance tools, and roles-based access is critically important. OIPA meets this demand perfectly as security access is both rolebased and defined by configuration, and can be as secure or open as desired. Security behavior can also be configured to restrict access and processing capabilities of a security group. Source: CEB Analysis. 24

25 Operational Support L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY 1 Data Input 2 Underwriting 3 Illustration Access 4 Product Management 5 Issue and Invest 6 Ongoing Processing 7 Data Accessibility The system supports manual, online, and automated input of policy setup data including features and investments. The system supports underwriting functions and systems with data needed for policy decisions. The system can access historical policy illustration data and premium quotes from external tools. The system supports new and updated products with common and innovative features. The system supports policy issuance with common product guarantees and investments. The system supports policy processing (premiums, claims, policy changes, and investment functions). The system makes data easily accessible to functional stakeholders, including employees, agents, and auditors Product Maturity The product is mature in the market and has a steady or growing market share and client base. Vendor Stability The vendor has an established presence, sound financials, and can provide long-term, secure support. Tech Innovation The vendor has a proven innovation track record, a market-leading roadmap, and resources for longterm support Product Pricing The vendor offers flexible pricing for ongoing support and price discounts for additional purchases. Policy Lifecycle User Experience Security Compliance Deployment Support Geographic Support Analytics Reporting The system provides audit trails, information controls, compliance tools, and roles-based access. Enterprise Support The vendor offers on-site, hosted, or cloud options with support during and after implementation. The system provides support for multiple currencies, languages, and other geographic variations. Scoring Methodology To arrive at a vendor ranking, we developed a proprietary scoring metric outlined by the attributes within this anatomy that highlights the major elements of an enterprise investment decision. This metric assumes that every element is not equally important, and therefore assigns a higher level of importance to those attributes critical to a policy administration system. The remaining attributes are then divided further into three tiers to reflect their level of importance, highlighted below. Tier 1 Attributes Mission Critical Data Input Illustration Access Product Management Data Accessibility Distribution Product Pricing Vendor Stability Tier 2 Attributes Strong Priority Underwriting Ongoing Processing Documents and Forms External Data Reporting Geographic Support Deployment Support Technology Innovation The system collects and analyzes policy data to produce meaningful operational insights to improve processing. Tier 3 Attributes Product Differentiators Issue and Invest Workflow User Interface Dashboards Analytics Security Compliance Product Maturity The system supports bulk or ad-hoc reporting capabilities for financial, operational, or compliance needs. Dashboards The system presents users with role-specific dashboards displaying key metrics and allowing process actions. 8 Distribution The system supports multiple distribution channels and data interchange with external producer systems. 9 Documents and Forms The system can input, manage, and produce policy documents and forms in hardcopy and digital formats. 10 External Data The system integrates third-party data including investments and financial data supporting features and guarantees. 11 Workflow The system has advanced workflow management to model, automate, monitor, and adjust policies. 12 User Interface The UI is intuitive and configurable with views of transaction entry screens, current, and historical data. 25

26 Scoring Metric Anatomy UNDERSTANDING OUR SCORING METHODOLOGY We developed a unique scoring methodology that highlights the key priorities for an executive s investment decision. Every vendor product featured in this report is scored against each of the 22 attributes outlined in the diagnostic anatomy on a standardized 1-5 scale. We calculate the weighted average of a product s attribute scores in each of the four categories of the anatomy to arrive at an overall category score. Policy Administration Systems Technology Analysis Internal Scoring Guide Illustrative Category Policy Lifecycle Operational Support Attribute Title Attribute Definition SCORE 5 Data Accessibility The system makes data easily accessible to functional stakeholders, including employees, agents, and auditors. The solution allows users to search and access policy information, and report on the search results. Workflow The system has advanced workflow management to model, automate, monitor, and adjust policies. The technology has workflow tools that vary for individual users based on their roles and permissions and is aligned to any external BPM solutions. 4 The solution stores and presents historical policy data to authorized users, but it does not require programmatic changes. The technology has workflow tools that vary for individual users based on their roles and permissions The solution stores and presents historical policy data to authorized users, but it requires programmatic changes. The solution makes data easily accessible to functional stakeholders, including employees, agents, and auditors. The solution does not make data easily accessible to functional stakeholders, including employees, agents, and auditors. The technology has tools that allow carriers to balance workloads and assign tasks to appropriate users. The technology has advanced workflow management to model, automate, monitor, and adjust policies. The technology does not have advanced workflow management to model, automate, monitor, and adjust policies. Source: CEB Analysis. Attribute Score:

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