How Automated Underwriting Engine and Analytics Software can transform insurers new business growth

Transcription

1 How Automated Underwriting Engine and Analytics Software can transform insurers new business growth 3 rd Asia Insurance CIO Technology Summit 2014 Raphael P Young Raphael P. Young Senior Vice President, Asia Pacific Ex.Japan Munich Re Automation Solutions

2 Agenda Item 1. WHAT are we seeing in Asia? 2. WHY automate? 3. HOW is it done? Case Studies

3 Background 1. Munich Re Automation Solutions Ltd - a Munich Re subsidiary 2. Software company - life insurance new business underwriting solutions only 3. In business for 28 years 4. Offices in Ireland*, USA, Germany, Singapore, Australia and Japan 5. Software & Reinsurance businesses work closely together to bring together market winning i new business underwriting solutions to insurers globally ll

5 What we re seeing in Asia 1. It s all about growth & building capability for future (a) Growth through New channels & products (protection) and improved product penetration (b) Growth through a more compelling service proposition 2. Major move to electronic new business and auto-underwriting (auw) Good for the business: costs, scalability Good for intermediaries (speed, no rework, more productive) AND good for customers A lot of interests from Indonesia, Philippines, Malaysia in addition to HK, Singapore, China, Taiwan 3. Beyond the eapp to auto-underwriting To provide real value to distributors ib & customers (once and done, immediate decisions) i Move to more profitable protection products high STP is key to grow underwriters are scarce edistribution investment is taking the long view (future proofed solution, no cost blow out or rework) 4. Service proposition is a key battleground of the future - Focus on Real Value Immediate decisions freeing up agent s time to focus on sales Attract a younger, dynamic generation of agents Constant improvement in experience (e.g. reduced/improve questions, call centre handover, add new products/features, constant process improvements) 6

6 What we re seeing in Asia cont. 5. Everyone is going g Mobile It s all about the experience and must be compelling across all devices Offline is a key requirement 6. Predictable long term cost Lots of regular change in this auw area is necessary for success (best practice clients schedule rule changes monthly) Self sufficiency from IT and vendor is key & no long term lock-in 7. Sharp focus on analytics for better business decision-making Now that edata is available, the trick is turning it into actionable intelligence quickly and cheaply Provide business managers with insightful (dashboards) they can act on Amplified in a regional context auw is half the story, Analytics is the other half 7

7 eapps vs auw esub eases application submission process, but underwhelming advantage post submission auw delivers superior benefits: risk management / compliance; buying experience; product development, MIS drives business decision-making, reduced evidence costs, reduced NTU s, etc auw provides a flexible platform to ensure long term sustainable advantage Launch new channels, products, markets and languages quickly Fit-for-purpose auw & Analytics turns underwriting into a key business enabler Very dynamic part of ebusiness system. Constant change is critical to success. Solution must fully empower underwriters & actuaries. Keep IT and the vendor away. And the real work starts after project completion 8

9 How automated underwriting solutions create value New business process traditional powered by auw solutions + Specific case management (together with RI) Proce essing day ys U/W cost U/W com mplexity Qualified medical U/W (e.g. laboratory and doctor reports) Simple medical U/W (e.g. questionnaires) Clean Cases (no further medical U/W necessary) auw 1 - Automated underwriting is about increasing standardisation in the process 10

10 Benefits to your business Growth Re-engineering g distribution, new products, scalability Compelling and differentiated customer experience Quick underwriting decisions and reduced sales leakage Improve business efficiency i / reduce costs Faster acceptance decisions and better customer service delivery Remove errors and re-work in applications submitted Can process up to 5 times more new business with no increase in customer service staff No bottlenecks during business peaks and sales incentives STP, underwriting automation and system integration reduces the cost of customer acquisition, new business and underwriting processes Significant benefits to the business and the customer 11

11 Benefits to your business Governance and Risk Management Data available from e-apps can drive evidence based decisions for product design, pricing and underwriting philosophy Ensures consistency of underwriting decisions Maximise corporate agility Ability to scale operating model cope with increasing new business volumes Easier to launch new product and distribution channels quickly Easier to adapt underwriting philosophy and strategy to rapidly changing environment Significant governance and strategic benefits to the business 12

12 auw Benefits Summary Business leaders Underwriters & Business IT Applicant Actuaries Development Increased sales Reduced costs Increased profitability Leapfrog competition High STP rates Solid platform foundation for growth Long term value Strategic visibility into business Enhanced reinsurance partnership Frees up underwriters to underwrite Accurate and consistent decisions Underwriters become key business enablers Constant improvement culture enabled No need for IT or vendor involvement in changes Analytics key for product insights Shorter sales cycles More oediverse ese distribution channels Improve product penetration (up-sell protection products) Innovate quickly Enhanced attractiveness of protection products Loyal, more productive intermediaries Attract /recruit intermediaries Easy integration via flexible config tools Easy upgrade path and maintenance Integrated analytics across NBP Could save $ millions from data analytics budget Fully control the journey/experience that is presented to each applicant Self sufficient from vendor Fast decisions Better service / experience of buying protection Broader suite of products suited to their needs 13

13 Facilitating future success Unlocking the data Utilise a reporting tool and resource skills to analyse Target customers and manage distribution Link & analyse application data, policyholder data and claims data to shape product proposition, pricing and acquisition models Money is a value business, information is a growth business 14

14 Continual data analysis is critical for success 1. Define measureable and achievable goals Reduce Operational Costs Measure Change Discover Analyse Reduce referrals to manual underwriting Reduce medical evidence costs Increase Premium Income Reduce not completed cases Discover product opportunities Improve Claims Experience Identify early under disclosure/anti-selection Link underwriting disclosures with claim outcomes Improve Compliance Consistent underwriting throughout the portfolio 2. Adopt a continuous process to enhance your proposition Framework to deliver multiple business benefits 15

15 Business Analytics Reports Library Our Business Analytics has pre-defined, out-of-the-box reports library which enables clear and deep business insights immediately. Dashboards Home dashboard Rules performance dashboards d Underwriting outcomes results dashboard Rules Performance Tuning Sales a. Base Questions answered b. Condition completeness c. Condition effectiveness d. Initial UW effectiveness Distribution Management a. Agent Behavior: Case Statistics b. c. Agent Behaviour: Life Statistics Top 25 Agents by Case Status t d. Product Breakdown by Agent a. Sales Breakdown Underwriting Philosophy a. Case Information b. Life statistics c. Top 25 Conditions d. Top 25 Conditions with Premium Loadings Actions e. Top 25 Conditions with Sum Assured Loadings Actions f. Top 25 Evidence g. Top 25 Exclusions h. Top 25 Policy Conditions i. Top 25 Combinations Confidential document 16

16 Dashboards overall performance Agile reporting with new insights for management

17 Underwriting rules performance Enhance rules performance for operational efficiencies

18 Underwriting philosophy reports Disclosures with premium loadings actions medical, occupational, pursuits Link to claims data for pricing 19

19 Medical evidence costs Which disclosures are causing you most cost? Analyse policy completion rates efficiencies, niche market offers 20

20 Distribution management Product and benefit sales by each agent. Product profitability of Agents 21

21 Distribution management age e Statistics such as the average age, % of drinkers & smokers Assess the quality of business 22

22 Distribution management Application statistics, % of cases issued; % issued at standard terms; average duration of policy; average number of disclosures, evidence requests, exclusions etc. Measure profitability of Agents

24 refer to speaker Best Practice

25 Asia Pacific refer to speaker 26

26 Conclusion Automated underwriting offers insights not accessible in traditional processes. Unlocking the data can take your business to the next level. Ability to create a framework from portfolio insights to drive evidence based decisions: o pricing o product design o underwriting philosophy o Improved risk management o Distribution management o Operational efficiencies Automated underwriting insights puts your business in the drivers seat 27

27 Munich Re Automation n Solutions Ltd Thank you very much for your attention

28 Disclaimer 2014 Münchener Rückversicherungs-Gesellschaft Aktiengesellschaft in München ("Munich Re"). All rights reserved. The content of this presentation (including, without limitation, text, pictures, graphics, as well as the arrangement thereof) is protected t under copyright law and other protective ti legislation. l These materials or any portions thereof may be used solely for personal and non-commercial purposes. Any other use requires Munich Re s prior written approval. Munich Re has used its discretion, best judgement and every reasonable effort in compiling the information and components contained in this presentation. It may not be held liable, however, for the completeness, correctness, topicality and technical accuracy of any information contained herein. Munich Re assumes no liability with regard to updating the information or other content provided in this presentation or to adapting this to conform with future events or developments. 29