Global renowned Insurance company and one of the top 5 Private Sector

Insurance Company in India

Case Study

AgendaBackground

Major Operational challenges

The Solution

Newgen Solution Implemented

Process 1: Policy Owner Servicing

Pre Implementation Scenario

Post Implementation Scenario

Benefits

Process 2: New Business Process flow

Pre Implementation Scenario

Post Implementation Scenario

Benefits

Background - About Global Insurance Company• Global Insurance Company is a joint venture between New York based life insurance company; a

Fortune 100 company and one of India's leading multi-business corporations, and operates out of its Head Office, (HO) in Northern India.

• Incorporated in 2000, insurance company started their commercial operation in 2001 and currently has 33 bank assurance relationships, 14 corporate agency tie-ups and direct sales force at 14 locations.

• Using a “hub & spoke” model, they increased business and operations by a network of Service Centers and General Office (GO). For instance the 2 states have 9 Service Centers catering to around 30 GOs.

• Some of the key departments are :– The centralized New Business department, which processes all new proposals at HO. This department is also

responsible for generating revenue for the company. – The Claims department of the company performs the crucial role of processing and settling of claims, – The Policy Owner Servicing (POS) department, responsible for servicing various requests from policy owners.

• The company uses a core insurance application, Ingenium, for all types of functions – be it issuing policies, registering and assessing claims and other functions.

Major Operational Challenges

Major Operational Challenges• High dependence on physical documents :

– Physical transportation of documents between GOs & HO and across departments increased the waiting time before which processing could start.

– Delay in indentifying document discrepancies as verification could be done only at HO where all the physical records were maintained

– Duplication of data entry happening for data already available in Ingenium– Limited automation and poor Workflow capabilities

• Managing Documents– Difficulty in storing and managing huge number of physical documents– Risk of misplaced or worn out documents– Inability to instantly track status of request due to time involved in searching relevant documents.– Slow physical movement of documents also created long lead times for different teams to get access to

documents

• Compliance Issues– Due long processing times and delays in getting access to relevant documents, the company was facing

challenges in meeting certain regulatory requirements and guidelines of IRDA.

Major Operational Challenges… contd • Difficulty in Measuring Productivity

– Extremely high dependency on physical documents along with completely manual processes, gave rise to factors that were beyond the control of users.

– These factors not only hampered employee productivity but also created problems for measuring productivity.

• High Operational Costs– Given the nature of the insurance business, with every additional policy that a company issues

its cost of operations also increases.– They were also incurring this same problem of scaling operational cost which were due to :

• Courier and document movement between offices and departments• Document storage, maintenance and printing, photocopying charges• High overheads on support stuff and other related activities• Time cost due to long processing times and delays caused to unavailability of documents

• Increasing Workload– With the increase in business generated and policies issued, the number of transactions also

increased drastically. This required scaling and ramping up of the operations.

The Solution

The Solution – What Insurance Company Required • The company, expecting exponential growth in its business,

was looking for a reliable solution which would be capable of :– Scaling up of operational activities– Increasing productivity and operational efficiency– Improving customer satisfaction through quicker and better

servicing, and reduced customer response timelines– Delivering measurable business benefits, was needed.– Meet compliance and regulatory guidelines and requirements in

terms of Turn around Time (TATs)– Enabling employees to handle multiple requests simultaneously

with minimal complexity.

Newgen’s Solution for Insurance Company • Newgen’s solution for Insurance Company, for managing business processes, was a

combination of the following products:

– OmniFlow, a platform-independent, scalable rule based Workflow solution that enables automation

of organizational business processes;

– OmniDocs, an Enterprise Document Management solution for creating, capturing, managing,

delivering, and archiving large volumes of documents and content;

– OmniCapture, a production grade Scanning and Indexing System for large-scale conversion of paper

documents into electronic images, indexing, and seamless upload of these images to Document

Management and Workflow Systems.

– Record Management System, the complete Web-enabled record management solution. The system

provides the functionality to transfer document details to records and apply record policies on them.

It manages physical records as if they are electronic records.

• The solution was deployed at the HO in a record 2 months time and subsequently in 39 SCs

spread across Indian sub-continent.

• The workflow system was designed to cater to each specific worktype, providing a user-

friendly interface, with documents and relevant information from Ingenium displayed side-

by-side on a split-screen, while maintaining system security and data integrity.

Process 1: Policy Owner Servicing

- Pre Implementation Scenarios

- Post Implementation Scenario

- Benefits

Policy Owner Servicing (POS) - Pre Implementation Scenario • POS handles customer requests pertaining to their existing policies.

• At present Insurance company has more than 80 service request types which are also known as “worktypes”.

• The process is further complicated as a single customer could make multiple request which could be either for one policy or more than one policy.

• POS request forms & supporting docs are received by the GO/HO. After initial verification GOs courier them to the HO.

• At HO, after Quality Check of application forms & documents and all discrepancy resolution, sorting in done based on work types. Then the forms are forwarded to the concerned POS department.

• This would include any service requests other than new policy issuance. Some of the typical requests handled by POS could be :– Change in Address

– Purchase of Paid up Additional Coverage. etc

• Based on the request type, the concerned POS department, first verifies the customer from whom the request has come. Most of the time this is done by referring to the old documents of the customer.

• Post customer verification, the request is fulfilled and dispatched to the relevant GO to be delivered to the customer.

POS - Post Implementation Benefits• Improved operational efficiency & productivity

– Faster processing due to removal of dependence on physical documents

– Faster discrepancy & exceptions identification through GO QC.

– Users able to handle complex multiple requests from single customers efficiently

– Better resources utilization and work allocation through auto assignment.

– Ability to handle higher volumes of request on daily basis – ramping up off operations

– Minimal data entry error.

• Improved TAT– Reduction in document retrieval time and worktype processing time

– Reduction in delays caused by loss of documents or request forms.

– Reduction in file movement and dependency on availability of physical files for processing worktypes.

– Parallel processing between SCs and HO reduces communication processing time.

– Faster and better communication between teams.

POS - Post Implementation Benefits…. contd• Reduction in operational cost :

– Parallel processing at branches and HO lead to reduced communication costs (phone calls, travel etc) and time

– Cost of couriering, printouts, document retrieval eliminated.

– Reduction in cost of support staff required for handling of documents.

• Efficient monitoring and tracking– Process is managed better due to Workflow.

– Audit trails are possible

– Tracking of transactions, customer requests and process

• Better and efficient Document Management

– Auto updating of RMS ensures better tracking of physical documents. The physical

documents now instead of being dispatched daily, are sent for storage to the

Application Service Center (ASC) at HO.

– All the documents are centrally managed at OmniDocs repository to ensure round-

the-clock availability.

Process 2: New Business Process

- Pre Implementation Scenarios

- Post Implementation Scenario

- Benefits

New Business Process : Pre Implementation Scenario

• Policy issuance process starts with the receipt of the application form, along with required

set of documents, from a customer/agent at one of the General Offices (GOs) in the country.

• After scrutinizing the application and supporting documents, the GOs dispatch them in

batches on a daily basis to the Home Office for processing.

• On receipt, the HO intimates the concerned GO of the same and, forwards the application for

a Quality Check to the relevant team.

• In case any discrepancies are found while Quality Check, the concerned GO is notified and

the agent/customer is contacted for clarifications and/or additional documents if required.

• Post required clarifications and on their successful resolutions, applications are then

forwarded to the New Business Department.

• At the New Business Department, applications are assessed and requirements are generated

for issue or underwriting purposes. The case is sent for underwriting, whether medical or

non-medical, subsequently the premium is calculated for the application.

• After premium calculation is completed, there is another level of quality check done, before

the policy is issued and dispatched to the concerned GO/Agent/Customer.

New Business - Post Implementation Benefits• Improved operational efficiency & productivity

– Faster processing due to removal of dependence on physical documents

– Faster discrepancy & exceptions identification through GO QC.

– Better resources utilization and work allocation through auto assignment.

– Ability to handle higher volumes of request on daily basis – ramping up off operations

– Minimal data entry error.

– Easier stacking of policy status at any point of time.

• Improved TAT– Reduction in document retrieval time and worktype processing time

– Reduction in delays caused by loss of documents or request forms.

– Reduction in file movement and dependency on availability of physical files for processing worktypes.

– Parallel processing between SCs and HO reduces communication processing time.

– Faster and better communication between teams.

New Business - Post Implementation Benefits…. contd• Reduction in operational cost :– Parallel processing at branches and HO lead to reduced communication costs (phone calls, travel

etc) and time.

– Savings in underwriting effort and cost, especially as with the new application it was possible to provide certain underwriting services from SCs for certain product types.

– Cost of couriering, printouts, document retrieval eliminated.

– Reduction in cost of support staff required for handling of documents.

• Efficient monitoring and tracking– Process is managed better due to Workflow.

– Audit trails are possible

– Tracking of transactions, customer requests and process

• Better and efficient Document Management

– Auto updating of Record Management System (RMS) ensures better tracking of physical

documents. The physical documents now instead of being dispatched daily, are sent for storage

to the Application Service Center (ASC) at HO.

– All the documents are centrally managed at OmniDocs repository to ensure round-the-clock

availability.