Policy Administration Systems Technology Analysis Abstract*

Transcription

1 CEB TOWERGROUP INSURANCE April 2014 Policy Administration Systems Technology Analysis Abstract* Karen Pauli Research Director, Insurance Vendor Assessment and Quantitative Teams *For full copies please contact Peggy Doss at CEB TowerGroup

2 INSURANCE PRACTICE Executive Director Matt Dixon Senior Director Peter Delano VENDOR ASSESSMENT TEAM Project Manager Magda Rolfes Senior Research Analyst Nate French Research Director Karen Pauli QUANTITATIVE INSIGHT TEAM Project Manager Carolina Valencia Data 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 & METHODOLOGY In response to feedback from our membership, CEB TowerGroup 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 that aligns with the firm s needs. To that end, CEB TowerGroup conducted a series of interviews and surveys with financial services executives, industry experts, and vendors regarding Policy Administration Systems. The results of this research formed the basis of our diagnostic anatomy and informed the proprietary five point rating system on which we scored individual products. CURRENT MARKET & FUTURE INVESTMENT Customer satisfaction with insurance has dropped markedly, as consumers express discontent about multichannel service. Global and North American consumer satisfaction dipped in Q3 of 2013 to the lowest levels since early Though this shift can be partially attributed to rate increases and catastrophes, it also reflects dissatisfaction towards the status quo of multichannel service. Consumer expectations of multichannel are significantly higher than what insurers deliver. Customers aren t getting the support they need through digital channels, and report that buying products online can be confusing and frustrating. Complicating this challenge for insurers is explosive data growth, which makes it harder to provide high standards of service. These trends are pushing insurers towards core transformation projects, with aging policy admin systems at the center of insurers plans, and a core replacement cycle brewing. Development in the PAS market is centering around user enhancements, operational efficiency, and analytics. The market is seeing particular growth towards flexibility and usability tools that enhance the experience of end users and configuration analysts. For example, product lifecycle management has undergone a major shift as insurers have demanded tools to allow them to meet rapidly changing customer needs. Operational tools, ranging from Software as a Service to more tightly packaged core systems suites, will see a growth in insurer adoption. Multi-source underwriting and risk analytical tools are in sharp demand, and will be benefited by the development of dashboards and other simple reporting tools for underwriters. These tools will shape the innovation landscape as the tightly competitive PAS vendors contend for differentiation. Customer demand for digital channels is driving spending. In response to customer preferences shifting towards digital channels, carriers are planning core transformation projects, with policy administration systems at the center of insurers plans to enable stronger multichannel service. As carries continue to continue to focus on back office modernization, investments in policy administration systems will increase 3.8% a year globally until

4 EXECUTIVE SUMMARY VENDOR LANDSCAPE AND RANKINGS Policy Administration Systems house policy-level information that facilitates sales and service, and are a hub for core system integration and distributor and customer information access. The selection process centered around those vendors with mature products, globally recognized innovation, and multiple largescale installations with major P&C insurance carriers. This report looks at both standalone Policy Administration Systems and policy components of end-to-end Insurance Management suites. Several vendors featured in this report have significant experience supporting Policy Administration for life and annuities carriers; however, for inclusion, all solutions must have active P&C carrier clients. This technology analysis includes Accenture, Adaptik, CCS, CodeObjects, Inc., Cover-All, Exigen Insurance Solutions, Guidewire, Innovation Group, Insurity, Insurance Systems Inc., MajescoMastek, Maximum Processing, OneShield Inc, and StoneRiver. By combining our qualitative and quantitative data from interviews with industry experts, carriers, and vendors, CEB TowerGroup identified 23 attributes that define a Best-in-Class Policy Administration System. These attributes are grouped into four categories that highlight a firm s user and enterprise needs. Vendor rankings are based on our proprietary five point rating methodology that scores each product on the 23 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 tool to select the vendor that best aligns with their firm s business objectives and investment needs. POLICY LIFECYCLE includes those tools that manage the lifecycle of customer policies from data input to ongoing processing. Leaders include Guidewire and three other technology providers. OPERATIONAL SUPPORT includes those attributes that support adjacent functions including underwriting, product management, and distribution. Leaders include Guidewire and three other technology providers. USER EXPERIENCE includes those attributes that evaluate the system s usability and its alignment to an insurer s workflow and reporting needs. Leaders include Guidewire and three other technology providers. ENTERPRISE SUPPORT includes those attributes that impact the technology provider s tactical fit and strategic alignment with the insurer. Leaders include Guidewire and three other technology providers. 4

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

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

7 Underlying Systems Core Systems Front End MIGRATION TOWARDS CORE SYSTEMS SUITES The insurance software industry has integrated historically distinct systems into end-to-end core suites. Architecture of an Integrated Core Systems Suite Illustrative Example Tablets Smartphones Producer Portal Consumer Portal Web Apps Contact Centers Almost all insurance technology providers now sell core systems suites rather than standalone systems, responding to market demand for tight integration. Permissions-based Access Technology partner selection, already a nuanced process, becomes more complicated as carriers consider if partnerships should extend across multiple functions, such as policy, underwriting, claims, billing, and distribution. Rating Underwriting Reinsurance Policy Administration Distribution Billing Claims Carriers will need in particular to find suites and components that can enhance their digital support. Dashboards & Reporting Analytics Integration Technologies Third party services & data Customer Relationship Management Financial Systems Business Process Management Rules Engine Data Warehouse Content Management Governance, Risk, and Compliance Source: CEB analysis The Corporate Executive Board Company. All Rights Reserved. 7

8 FOUNDATIONAL VALUE, BUT MODERATE SECURITY RISK Policy administration technology provides foundational value primarily for process improvement, and is a moderate risk. As the center of the core system architecture, policy systems naturally provide big value, primarily by automating policy lifecycle processes. Policy systems risk comes primarily from security concerns around data. Executives Overwhelmingly View PAS as High Value Percentage of P&C Insurance Carrier Executives, % Very high value 20% High value 24% Somewhat high value 2% Low or very low 5% Somewhat low value 19% Moderate value n = 125. Source: CEB 2014 Technology Adoption & Investment Survey Executives View PAS as Moderate to Low Risk Percentage of P&C Insurance Carrier Executives, % Somewhat high 8% Very High 8% Very Low 43% Moderate 24% Somewhat low n = 120. Source: CEB 2014 Technology Adoption & Investment Survey 2014 The Corporate Executive Board Company. All Rights Reserved. 8

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

10 ROI Potential EMERGING TECHNOLOGY FOR POLICY ADMINISTRATION Lowest Highest Integrated core systems suites SaaS Customer info dashboards Telematics Flexible product lifecycle management UW and Risk dashboards Collaborative tools Mobility Multi-source UW and risk analytics Social media DEFINITIONS ROI Potential: Measures the relative returns a carrier can expect to receive from an investment in the technology Technology State: Measures the technology s level of development User Impact: Measures the level of benefit the technology will have on the Policy Administration user Low User Impact Medium High Market-Ready Technology State In Development User technologies Customer information dashboards: This feature is already available in some systems. These dashboards streamline and organize the presentation of customer data to staff who need it. Flexible and codeless product lifecycle management: Advanced management of all product features using drag-and-drop tools. Already in production in some form in several systems. Collaborative tools: Enhanced tools to allow internal staff to collaborate on policy files in real time with internal or external partners. Underwriting (UW) and risk dashboards: Screens that present UWs with a summary of the risk data necessary to make decisions, including scores on various measures. Mobility: Ability to integrate seamlessly with mobile portals to send and accept information from producers, customers, and staff. Support for multiple OSs and geographies. Enterprise technologies Integrated core systems suites: Integration of historically distinct systems into end-to-end core suites, which are sold as packaged solutions that can cover the entire insurance lifecycle. Software as a Service (SaaS): A software deployment model in which an external entity owns, hosts, and manages the software application and delivers it as a service to the end customer. Usage based insurance: The use of wireless communications to connect driving data and other metrics to the premiums paid for certain products. Social media: Integration with social media sites for service inquiries, outbound alerts, and other service interactions. Multi-source underwriting and risk analytics: Sophisticated data analysis tools and modeling to from multiple data sources to enhance analytical rigor for underwriting and risk decisions. Source: CEB analysis. 10

11 P&C Carriers have untapped value in combining information from diverse sources for better decisions and more confident action. HIGH EXPECTED ROI FOR MULTISOURCE PREDICTIVE ANALYTICS From Single-Source to Multisource Predictive Analytics Illustrative High External third party data Level of Insight Policy data Claims data Underwriting data Telematics data Low Demographic data Low Number of Information Sources High Single-Source Analytics Multisource Analytics All data has value in relation to other data in the organization, and the ability to search and analyze across multiple information sources has given us tremendous insight. -VP and CIO, Global Firm Siloed Data Ambiguous Insights Anticipated Results Underused Data Sources Contextualized Insights Actionable Intelligence Unexpected Discoveries Extended Value Base The results of analysis take a deeper meaning in the context of data from diverse sources within the insurer and its partners. Integrating data from diverse sources helps eliminate ambiguities and identify inconsistencies. Enabling employees to combine data from multiple sources in a single analysis drives insight discovery. Vast volumes of underused data gain new value in the context of new information sources. Source: CEB analysis The Corporate Executive Board Company. All Rights Reserved. 11

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

13 MAPPING THE VENDOR LANDSCAPE Featured Policy Administration Systems PolicyCore Insurer Policy Level-7 Policy Enterprise STG Policy Administration System PolicyWriter Policy Decisions OneShield Policy Cover-All Policy Accenture Duck Creek Policy Guidewire PolicyCenter The Stingray System Selecting Featured Policy Administration Technology Providers CEB identified vendors for this analysis based on expert opinion, product maturity, size of installations, and technological innovation. Policy STAR ISI Enterprise 13

14 POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY Data Input Rating & Quoting Binding & Issuance Ongoing Processing Data Accessibility Product Management Underwriting Customer Support The system supports The system supports The system supports The system supports The system makes The system supports The system supports The system organizes and automates the and automates policy and automates the the ongoing processing data easily accessible the creation and underwriting functions and presents collection of data from rating and quoting for binding and issuance of policies, including to functional adjustment of product and systems with data necessary customer current & prospective prospective of policies to out-of-sequence stakeholders, including lines to meet changing needed for policy information to customers. customers. customers. endorsements and employees, producers, business needs. decisions. permissioned viewers. renewals. and third parties. 23 Vendor Stability The vendor has an established industry presence, sound financials, and can provide long term support for carriers. 22 Product Maturity The product is mature in the market and has a steady or growing market share and client base. 21 Tech Innovation The vendor has a track-record of innovation, a marketleading roadmap, and resources for long term innovation. Attribute Grading Policy Lifecycle HOW TO USE ANATOMY Operational Support 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 and tally the results. 2. Map the results to identify areas that are most important, but where your firm is least effective. 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. Enterprise Support 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. User Experience 9 Distribution The system supports carriers' distribution channels and systems, presenting and collecting information from producers. 10 Documents & Forms The system can collect, manage, and generate documents and forms necessary to the policy lifecycle. 11 External Data The system is built with integrations to third party data providers and collects information necessary to policy decisions. 12 User Interface The system has an intuitive and configurable UI with role-based views and dynamic data and process visualizations Product Pricing Compliance/Security Deployment/Support Geographic Support Analytics Reporting Dashboards Workflow The vendor offers The system provides The vendor offers onsite or hosted delivery support for multiple analyzes policy data to bulk or ad-hoc users with role- advanced workflow The system provides The system collects and The system supports The system presents The system provides pricing options with controls for flexibility around information and superior support currencies, produce meaningful reporting capabilities specific dashboards management to model, automate, monitor, and additional ongoing governance and tools during and after languages, and other insights for decision for financial, displaying key metrics makers to improve adjust policy lifecycle support packages and to meet compliance implementation, geographic variations. operational, or and allowing process policy processes. processes. price discounting. requirements. including updates. compliance needs. actions. 14

15 POLICY ADMINISTRATION SYSTEMS SCORE CARD Insurance executives should complete this scorecard using the Policy Administration diagnostic anatomy tool. Categories Attributes Current Effectiveness Potential Impact Policy Lifecycle 1. Data input 2. Rating & Quoting 3. Binding & Issuance 4. Ongoing Processing 5. Data Accessibility Operational Support 6. Product Management 7. Underwriting 8. Customer Support 9. Distribution 10. Documents & Forms 11. External Data User Experience 12. User Interface 13. Workflow 14. Dashboards 15. Reporting 16. Analytics 17. Geographic Support Enterprise Support 18. Deployment & Support 19. Compliance & Security 20. Product Pricing 21. Technology Innovation 22. Product Maturity 23. Vendor Stability 15

16 Potential Impact POLICY ADMINISTRATION SYSTEMS SCORE CARD 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 of their vendor selection. 5 =Very High 4 =High 3 = Moderate 2 =Low 1 =No Impact 5 = Superior 4 =Strong 3 = Adequate 2 = Marginal 1 =Weak Current Effectiveness 16

17 FEATURE AUDIT DEFINITIONS Line of Business Support Personal Auto Personal Homeowner Other Personal Property or Liability Commercial Property Commercial Auto Other Commercial or Specialty Workers Compensation Farm/agriculture Core Policy Lifecycle Dynamic questions generation Rating engine Real-time quote generation Straight-through policy issuance Automated out-of-sequence endorsements Product design and definition tools Policy search Operational Support Agent portal integration Forms/document library Forms/document generation Customer information search Historical customer data storage Rules engine Process management Audit trails Feature or Function Private passenger automobile. Individually owned single family homes, condominiums, renters. Examples: Inland Marine, Personal Umbrella, Fire, Recreational Vehicles, Watercraft. Commercially designated structures and contents. Commercially used vehicles. Examples: BOP, Commercial Umbrella, Inland Marine, Specialty Lines, E&O, D&O. Lines of business associated with workers compensation. Farms and agriculture businesses. The system can dynamically generate questions for customer and agents based on previous inputs or existing data. The system includes a rating engine and carriers can add, edit, test, and analyze rating rules without coding. The system automates the quoting process and can in some cases generate a quote for customers or producers in real time. The system can ingest data from a customer or agent and in some cases process and issue a policy in real time. The system can process out-of-sequence policy endorsements with little or no manual intervention. The system allows authorized users to design and introduce new products, or to re-define existing products without programming. The system allows authorized users to search for current and historical policy information. The system has pre-built interfaces for integration with agent portal technology to present policy data to producers. The system has a library of common forms and documents, including industry standards like ACORD and NCCI. 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 capabilities that allows creation, editing, testing, and analysis of process automation. The system keeps a record of the sequence of activities that have affected each policy file in the system. 17

18 FEATURE AUDIT DEFINITIONS (CONT D) Feature or Function Pre-built integration with third party data providers: Acxiom Corporation Dun & Bradstreet ISO/Verisk LexisNexis Risk Solutions Marshall & Swift/Boeckh Pitney Bowes R.L. Polk RiskMeter Online Emerging Technology Mobile OS support: ios Android Windows phone Blackberry Consumer mobility support Producer mobility support Social media integration Real-time collaboration tools Predictive analytics Business intelligence The system can integrate with the following mobile operating systems. The system can integrate with a mobile portal to send and accept information from customers. The system can integrate with a mobile portal to send and accept information from producers. The system can integrate with social media sites for service inquiries and outbound alerts. Users can work on policy files in real time with internal or external partners. The system includes tools for sophisticated data analysis and modeling producing insights for management and IT. The system includes tools for basic data analysis and tracks key metrics for management and IT. 18

19 FEATURE AUDIT DEFINITIONS (CONT D) Reporting Batch reporting Real-time reporting Standard reports library Custom report writer Bureau reporting tools Favorite reports Geographic Support Multilanguage Multicurrency Delivery Models Installed ASP SaaS BPO Feature or Function The system can produce management or IT reports in daily, weekly, or monthly bulk batches. The system can produce management or IT reports in real-time based on user defined parameters. The system includes a library of standard reports that users can run by choosing from a list of standard components or parameters. The system includes a custom report writer that allows graphical creation of new reports based on user-defined parameters. The system includes standard reports that can be used to report for insurance industry bureaus. Users can save a set of reporting parameters with a defined name, and can then access and run that report. The system includes support for multiple languages. The system includes support for multiple currencies. Installed at client site. Hosted, single-tenant. Hosted, multi-tenant. Outsourced business processes. 19

20 FEATURE AUDIT Feature or Function Line of Business Support Personal Auto Personal Homeowner Other Personal Property or Liability Commercial Property Commercial Auto Other Commercial or Specialty Workers Compensation Farm/agriculture Core Policy Lifecycle Dynamic questions generation Rating engine Real-time quote generation Straight-through policy issuance Automated out-of-sequence endorsements Product design and definition tools Policy search Operational Support Agent portal integration Forms/document library Forms/document generation Customer information search Historical customer data storage Rules engine Process management Audit trails Guidewire Feature or Function Pre-built integration with third party data providers: Acxiom Corporation Dun & Bradstreet ISO/Verisk Guidewire LexisNexis Risk Solutions Marshall & Swift/Boeckh Pitney Bowes R.L. Polk RiskMeter Online Emerging Technology Mobile OS support: ios Android Windows phone Blackberry Consumer mobility support Producer mobility support Social media integration Real-time collaboration tools Predictive analytics Business intelligence Offered native Offered premium Offered by partner Will offer in 12 months Will offer in 24 months Not offered 20

21 FEATURE AUDIT (CONT D) Feature or Function Reporting Batch reporting Real-time reporting Standard reports library Custom report writer Bureau reporting tools Favorite reports Geographic Support Multilanguage Multicurrency Delivery Models Installed ASP SaaS BPO Guidewire Offered native Offered premium Offered by partner Will offer in 12 months Will offer in 24 months Not offered 21

22 GUIDEWIRE POLICYCENTER GUIDEWIRE Key Statistics Company Type: Public Year Founded: 2001 HQ: Foster City, CA Number of FT Employees: 1,117 FY 2013 Revenue: $300.6 million P&C Carrier Clients by DPW (in millions USD) Range < $100 $100- $999 $1,000- $9,999 Source: Guidewire; CEB analysis The Corporate Executive Board Company. All Rights Reserved. > $10,000 # % 4% 55% 37% 4% Distribution of Clients by Region 0 4% 20-39% 60-79% 5 19% 40-59% % Company Overview Guidewire is a global P&C insurance software provider. The firm was founded in 2001 and was taken public with an IPO in Guidewire has eight offices worldwide and 26% of its client base outside North America. In May 2013, Guidewire acquired Millbrook Inc., a provider of data management and business intelligence (BI) solutions for P&C insurers. In October 2013, the firm launched Guidewire Mobile & Portals, a portfolio of products extending service through digital channels. Guidewire currently has 173 clients, of whom 57 have licensed PolicyCenter. Product Overview Guidewire PolicyCenter is a web-based policy administration system built for the Java EE platform. PolicyCenter is part of Guidewire s core systems Insurance-Suite, which also includes ClaimCenter and BillingCenter. The system is not sold as a series of modules, but several add-ons are available, including rating, reinsurance, and client data management. The most recent update, PolicyCenter 8, included an enhanced user interface, more accessible product configuration, better visibility into customer information, enhanced search capabilities, simplified data entry, and others. The release also included expanded commercial lines support based on increased line of business content, inherent multi-currency management, and data import tools for large schedules. Product Highlights Risk analysis screens: Underwriters and other parties involved can access a risk analysis screen for centralized access to all underwriting, loss control, and rating information. It includes a checklist of issues that require approval prior to issuing the policy, and clearly presents pertinent risk information to make underwriter review efficient. Centralized product definition: The insurance product and its components, including underwriting rules and screen definitions, are all defined and maintained in one central location. Within this location, product managers can develop and model products before promoting them to the production environment. Out of sequence transactions: PolicyCenter's wizard-based screen flow simplifies the entry of out of sequence transactions and guides users through resolving any potential conflicts that may arise. The system automatically creates the proper coverage on-set/offsets should premium be impacted by the transaction. CEB TowerGroup View PolicyCenter is one of the most robust policy systems on the market, and on an overall basis scored the highest of the 15 systems we reviewed. The system received Best-in-Class in all four categories of analysis, and received the highest score in the Policy Lifecycle category. These scores reflect the system s across-the-board strength and depth, as well as Guidewire s excellent customer support. The most recent release, PolicyCenter 8, includes a host of innovative improvements, including a redesigned and highly intuitive user interface. The firm has a large and growing customer base (in the last two years the product gained 14 new customers), which will support continued reinvestment in product development. The system supports document management requirements through integration with third parties, but does not include native forms/document library or generation capabilities. We expect further growth from this strong offering as Guidewire continues to innovate. 22

23 ROADMAP FOR THE PRESENTATION Current Market Future Investment Vendor Landscape Product Rankings 23

24 Product Differentiator ATTRIBUTES Strong Priority Mission Critical CATEGORIES CREATING OUR BEST-IN-CLASS PRODUCT RANKINGS Policy Lifecycle Operational Support User Experience Enterprise Support Phase 1 Utilizing qualitative and quantitative data, CEB TowerGroup identified 23 attributes that define a Best-in- Class policy administration system, which are grouped into four categories. Those tools that manage the lifecycle of customer policies from data input to ongoing processing. Those attributes that support adjacent functions including underwriting, product management, and distribution. Those attributes that evaluate the system s usability and its alignment to an insurer s workflow and reporting needs. Those attributes that impact the technology provider s tactical fit and strategic alignment with the insurer. Phase 2 Recognizing that all attributes are not equally important, CEB TowerGroup divides them into tiers to reflect their level of importance as mission critical, strong priority, or differentiators. Rating & Quoting Data Accessibility Data Input Ongoing Processing Product Management Customer Support Underwriting Distribution User Interface Reporting Workflow Analytics Deployment & Support Product Maturity Compliance & Security Tech Innovation Vendor Stability Phase 3 Certain products are recognized as Best-in-Class after scoring each product based on its performance at an attribute level. Binding & Issuance Documents & Forms External Data Dashboards Geographic Support Product Pricing Best-in-Class Policy Lifecycle Best-in-Class Operational Support Best-in-Class User Experience Best-in-Class Enterprise Support 24

25 BEST-IN-CLASS TECHNOLOGY PROVIDERS We base our rankings on the top products in each overall category according to our proprietary scoring methodology. Leaders are the top scoring technology provider in a given category and are chosen based on the differentiation in scoring in a particular category. Best-in-Class Category Policy Lifecycle includes those tools that manage the lifecycle of customer policies from data input to ongoing processing. Operational Support includes those attributes that support adjacent functions including underwriting, product management, and distribution. Anatomy Attributes Data Input Rating & Quoting Binding & Issuance Ongoing Processing Data Accessibility Product Management Underwriting Customer Support Distribution Documents & Forms External Data Best-in-Class Technology Providers Accenture Adaptik Guidewire Innovation Group Accenture Exigen Guidewire Innovation Group User Experience includes those attributes that evaluate the system s usability and its alignment to an insurer s workflow and reporting needs. User Interface Workflow Dashboards Reporting Analytics Geographic Support Cover-All Guidewire Innovation Group OneShield Enterprise Support includes those attributes that impact the technology provider s tactical fit and strategic alignment with the insurer. Deployment/Support Compliance Security Product Pricing Tech Innovation Product Maturity Vendor Stability Accenture Guidewire Insurity MajescoMastek Source: CEB analysis. 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. 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. 25

26 BEST-IN-CLASS ACHIEVEMENTS FOR GUIDEWIRE Guidewire received Bestin-Class achievements in the categories of Policy Lifecycle, Operational Support, User Experience, and Enterprise Support Policy Lifecycle includes those tools that manage the lifecycle of customer policies from data input to ongoing processing. Operational Support includes those attributes that support adjacent functions including underwriting, product management, and distribution. User Experience includes those attributes that evaluate the system s usability and its alignment to an insurer s workflow and reporting needs. Enterprise Support includes those attributes that impact the technology provider s tactical fit and strategic alignment with the insurer. Category Policy Lifecycle Operational Support User Experience Enterprise Support Highest Scoring Attributes & Analysis Rating & Quoting: The rating solution includes Impact Testing to enable new rating models to be tested against a book of business to determine the influence they will have in actual scenarios a valuable tool in evaluating alternatives. Ongoing Processing: The system has a wizard-based screen flow to simplify out of sequence transactions and guide users through resolving conflicts. Data Accessibility: Guidewire s applications allow users to run real-time, parameter-based operational reports through the Advanced Search features. External Data: Guidewire has an extensive library of accelerators for use in projects for integration to 3rd party data providers, such as address verification, geocoding, CLUE, MVR, agency upload/download, and others. Underwriting: PolicyCenter includes a "Risk Analysis" screen for centralized access to all underwriting, loss control, and rating information. Product Management: Guidewire provides product templates, including extensions with product specs based on ISO, NCCI, & state bureaus standards. Geographic Support: PolicyCenter supports over 150 languages including Cyrillic and double-byte character sets, as defined by ISO The user does not have to change or leave the application while changing the language. User Interface: PolicyCenter has an exceptional user interface that is simple and matches the workflow needs of different user roles. Dashboards: Guidewire s complementary Standard Reporting module gives an insurer the ability to create reports and dashboards for operational insights. Technology Innovation: Guidewire has released a number of market leading innovations, for example Guidewire Live, which is a network that connects peer insurers, core systems data, external sources of information, and tools. Compliance & Security: The system has multi-level security built in, including role-based access, authentication, authorization, and database encryption. Product Maturity: Guidewire PolicyCenter has a large and growing customer base, including 21 carriers with more than $1 billion in premiums written. Source: CEB analysis. 26

27 POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY Data Input Rating & Quoting Binding & Issuance Ongoing Processing Data Accessibility Product Management Underwriting Customer Support The system supports The system supports The system supports The system supports The system makes The system supports The system supports The system organizes and automates the and automates policy and automates the the ongoing processing data easily accessible the creation and underwriting functions and presents collection of data from rating and quoting for binding and issuance of policies, including to functional adjustment of product and systems with data necessary customer current & prospective prospective of policies to out-of-sequence stakeholders, including lines to meet changing needed for policy information to customers. customers. customers. endorsements and employees, producers, business needs. decisions. permissioned viewers. renewals. and third parties. 23 Vendor Stability The vendor has an established industry presence, sound financials, and can provide long term support for carriers. 22 Product Maturity The product is mature in the market and has a steady or growing market share and client base. 21 Tech Innovation The vendor has a track-record of innovation, a marketleading roadmap, and resources for long term innovation. Scoring Methodology To arrive at a vendor ranking, CEB TowerGroup 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 attributes are divided into three tiers to reflect their level of importance, highlighted below. Tier 1 Attributes Mission Critical Rating & Quoting Data Accessibility Product Management Customer Support User Interface Reporting Deployment & Support Product Maturity Enterprise Support Policy Lifecycle Tier 2 Attributes Strong Priority Data Input Ongoing Processing Underwriting Distribution Workflow Analytics Compliance & Security Tech Innovation Vendor Stability Tier 3 Attributes Product Differentiators Binding & Issuance Documents & Forms External Data Dashboards Geographic Support Product Pricing User Experience Operational Support 9 Distribution The system supports carriers' distribution channels and systems, presenting and collecting information from producers. 10 Documents & Forms The system can collect, manage, and generate documents and forms necessary to the policy lifecycle. 11 External Data The system is built with integrations to third party data providers and collects information necessary to policy decisions. 12 User Interface The system has an intuitive and configurable UI with role-based views and dynamic data and process visualizations Product Pricing Compliance/Security Deployment/Support Geographic Support Analytics Reporting Dashboards Workflow The vendor offers The system provides The vendor offers onsite or hosted delivery support for multiple analyzes policy data to bulk or ad-hoc users with role- advanced workflow The system provides The system collects and The system supports The system presents The system provides pricing options with controls for flexibility around information and superior support currencies, produce meaningful reporting capabilities specific dashboards management to model, automate, monitor, and additional ongoing governance and tools during and after languages, and other insights for decision for financial, displaying key metrics makers to improve adjust policy lifecycle support packages and to meet compliance implementation, geographic variations. operational, or and allowing process policy processes. processes. price discounting. requirements. including updates. compliance needs. actions. 27

28 Scoring Metric Anatomy UNDERSTANDING OUR SCORING METHODOLOGY CEB TowerGroup develops a unique and proprietary scoring methodology that highlights the key priorities for an executive s investment decision. Every vendor product featured in this report is scored on each of the 121 sub-attribute scoring factors, which are weighted and rolled into scores for each of the 23 attributes on the diagnostic anatomy. We calculate the weighted average of a product s attribute scores in each of the 4 categories of the anatomy to arrive at an overall category score. Sample Technology Analysis Internal Anatomy Scoring Guide Illustrative Category Operational Support Enterprise Support Attribute Title Product Management Deployment/Support Attribute Definition Sub-Attribute scoring factor SCORE 5 The system supports the creation and adjustment of product lines to meet changing business needs. Defining and introducing new products The PAS meets a 4, and also has advanced and innovative analysis features, lifecycle management tools, collaboration features, and other features to support the successful rollout of new products. The vendor offers on-site or hosted delivery and superior support during and after implementation, including updates. New functionality in most recent update In its most recent update, the vendor included a large number of excellent improvements in functionality, usability, and emerging technologies. 4 The PAS has simple and advanced tools to introduce new products, including a clear and graphical layout with time saving tools to define and roll out the product. In its most recent update, the vendor included a few excellent improvements in functionality, usability, and emerging technologies. 3 The PAS has tools to introduce new products, but it is not as graphical or simple as a 4, doesn t include analysis tools, or would require an advanced user. In its most recent update, the vendor included a few good improvements in functionality, usability, and emerging technologies. 2 Introducing a new product requires some coding or is otherwise not as simple or intuitive as a 3. In its most recent update, the vendor included a few basic improvements in functionality. 1 Introducing a new product requires significant coding work or assistance from the vendor. The most recent update did not include significant improvements. Attribute Score: Source: CEB analysis. 28

29 29