Life and Annuity Policy Administration Systems - · PDF fileLIFE AND ANNUITY POLICY...
Transcript of Life and Annuity Policy Administration Systems - · PDF fileLIFE AND ANNUITY POLICY...
LIFE AND ANNUITY
POLICY ADMINISTRATION SYSTEMS Technology Analysis Abstract*
CEB TOWERGROUP
INSURANCE
January 2015
Sam Stuckal Research Director, Insurance
Vendor Assessment and Quantitative Insight Teams
*For full copies please contact [email protected]
© 2015 CEB. All Rights Reserved.
INSURANCE
Executive Director
Matt Dixon
Managing Director
Jaime Roca
Program Director
Peter Delano
Research Director
Sam Stuckal
QUANTITATIVE INSIGHT TEAM
Director
Jasleen Sindhu
Research Analyst
Edward MacDonald
VENDOR ASSESSMENT TEAM
Senior Director
Anne Marie Houston
Senior Analyst
Atit Amin
Specialist
Rachel Griffin
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 +1-866-913-6450 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
© 2015 CEB. All Rights Reserved.
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 2018. 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
© 2015 CEB. All Rights Reserved.
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
© 2015 CEB. All Rights Reserved.
DEVELOPING A TECHNOLOGY ANALYSIS
Technology Analysis Presentation Roadmap
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.
Current Market
Future Investment
Vendor Landscape
Product Ranking
Market Drivers:
Assess changes in the
industry and customer
behavior
Spending Forecast:
Benchmark global and
regional policy
administration
technology spending
List of Players:
Identify key
technology firms and
their products
“Best-in-Class”
Products:
See the top products
based on our anatomy
categories
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
Feature Audit:
Compare the relative
feature offerings by
vendors
Vendor Profiles:
Understand the key
differentiators between
products
5
© 2015 CEB. All Rights Reserved.
Current
Market
Future
Investment
Vendor
Landscape
Product
Rankings
ROADMAP FOR THE PRESENTATION
6
© 2015 CEB. All Rights Reserved.
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
Source: CEB 2013 Customer Experience Survey.
n = 527.
23%
35%
23% 27%
37%
20% 38%
16%
22% 30%
25%
46%
9% 3% 3% 2%
2% 3% 2%
2%
Learn About aProduct or Service
Purchase Use or Access Receive CustomerSupport
In-person Online Phone Mobile Mail
Policy
Inquiry and
Problem
Resolution
Policy Issue
and
Onboarding
Policy
Transactions
7
© 2015 CEB. All Rights Reserved.
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, 2012
Source: CEB 2012 FS Operations Leadership Council Automation Survey.
n = 58.
Negative Consequences of the Level of Manual Work
Percentage of Operations Executives, 2012
62% 59%
38%
15%
Legacy SystemsEnvironment
Business Environment Regulatory Environment Customer Demands
Source: CEB 2012 FS Operations Leadership Council Automation Survey.
n = 61.
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%
8
Current
Market
Future
Investment
Vendor
Landscape
Product
Rankings
ROADMAP FOR THE PRESENTATION
© 2015 CEB. All Rights Reserved. 9
© 2015 CEB. All Rights Reserved.
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)
Source: CEB Analysis
$3,414
$3,532
$3,672
$3,846
$4,092
$4,436
$3,000
$3,200
$3,400
$3,600
$3,800
$4,000
$4,200
$4,400
$4,600
$4,800
$5,000
2014E 2015P 2016P 2017P 2018P 2019P
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.
10
EMERGING TECHNOLOGIES IN POLICY ADMINISTRATION
© 2015 CEB. All Rights Reserved.
Emerging Technology Matrix
Usability and Workflow Emerging Operational Capabilities
Process Management: Configurable workflows that automate onboarding,
investment actions, and standardize data capture for regulatory compliance
(e.g., KYC, AML, etc.).
Interactive Visualizations: Capability that allows for real-time and user-driven
selection and representation of data for analysis, decisioning, and workflow
improvements.
Data Integration: Function that connects disparate recordkeeping applications,
core systems, and external data to provide a complete customer view.
Predictive Operational Analytics: Tools that analyze current and historical
client data to predict future outcomes and enable delivery of customized policy
services.
Enterprise Collaboration: Set of productivity tools that allows internal staff and
agents to collaborate on policy files in real-time .
Mobility: Technology that equips users to interact with the system at all times to
eliminate the need for co-location of knowledge workers.
Real-time Processing: Feature that integrates external data sources and policy
administration through collaborative technologies, including CRM and ECM.
Cloud and Virtualized Application Platforms: Flexible software delivery
frameworks that include various models of hosted applications, SaaS-based
deployments, and virtual platforms.
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
Minimal
Medium
High
Workflow
Impact
Data
Integration
RO
I P
ote
nti
al
Early Stage In Development
Lo
w
Hig
h
Technology State
Interactive
Visualizations
Enterprise
Collaboration
Predictive
Operational
Analytics
Process
Management
Cloud and Virtualized
Application Platforms
Mobility Real-time
Processing
Source: CEB Analysis.
11
Current
Market
Future
Investment
Vendor
Landscape
Product
Rankings
ROADMAP FOR THE PRESENTATION
© 2015 CEB. All Rights Reserved. 12
© 2015 CEB. All Rights Reserved.
Life and Annuity Policy Administration Systems
By Date of Initial System Release
2010 1990 2000 1980
MAPPING THE VENDOR LANDSCAPE
Sources: CEB Analysis, Technology Vendors.
Selecting Featured PAS Vendors
We identified vendors for this analysis based on
expert opinion, product maturity, size of installations, and
technological innovation.
LifePro®
ID3 Policy Administration
ALIP
FIMMAS
V3 System
iWorks Compass
Elixir North America
VPAS®
OIPA
AFAS
ALIS
13
© 2015 CEB. All Rights Reserved.
Policy Lifecycle
User Experience
Data Input
The system supports
manual, online, and
automated input of policy
setup data including
features and investments.
Underwriting
The system supports
underwriting functions and
systems with data needed
for policy decisions.
Illustration Access
The system can access
historical policy illustration
data and premium quotes
from external tools.
Product Management
The system supports new
and updated products with
common and innovative
features.
Issue and Invest
The system supports policy
issuance with common
product guarantees and
investments.
Ongoing Processing
The system supports policy
processing (premiums,
claims, policy changes, and
investment functions).
Data Accessibility
The system makes data
easily accessible to
functional stakeholders,
including employees, agents,
and auditors.
6 5 4 3 2 1
Dashboards
The system presents users
with role-specific dashboards
displaying key metrics and
allowing process actions.
7
Reporting
The system supports bulk or
ad-hoc reporting
capabilities for financial,
operational, or compliance
needs.
Analytics
The system collects and
analyzes policy data to
produce meaningful
operational insights to
improve processing.
Geographic Support
The system provides
support for multiple
currencies, languages, and
other geographic variations.
Deployment Support
The vendor offers on-site,
hosted, or cloud options
with support during and
after implementation.
Security Compliance
The system provides audit
trails, information controls,
compliance tools, and
roles-based access.
14 16 17 18 13
Ente
rpris
e S
upport
Opera
tional S
upport
15
Distribution
The system supports
multiple distribution
channels and data
interchange with external
producer systems.
Documents and Forms
The system can input,
manage, and produce
policy documents and
forms in hardcopy and
digital formats.
External Data
The system integrates
third-party data including
investments and financial
data supporting features
and guarantees.
9
10
8
Workflow
The system has advanced
workflow management to
model, automate, monitor,
and adjust policies.
11
User Interface
The UI is intuitive and
configurable with views of
transaction entry screens,
current, and historical data.
12
Current Effectiveness Potential Impact
5 = Superior Capability We or our vendor offer this
regularly, systematically, and at the
highest standard.
5 = Very High
Impact
Our firm considers this attribute mission
critical when performed at the highest
standard.
4 = Strong Capability We or our vendor offer this regularly
and systematically.
4 = High Impact Our firm considers this attribute highly
important when performed at the highest
standard.
3 = Adequate Capability We or our vendor offer this regularly
but in an ad hoc manner.
3 = Moderate
Impact
Our firm considers this attribute moderately
important when performed at the highest
standard.
2 = Marginal Capability We or our vendor offer this irregularly
and in an ad hoc manner.
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.
Attribute Grading
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.
Product Pricing
The vendor offers flexible
pricing for ongoing support
and price discounts for
additional purchases.
19
Tech Innovation
The vendor has a proven
innovation track record, a
market-leading roadmap,
and resources for long-
term support.
Vendor Stability
The vendor has an
established presence,
sound financials, and can
provide long-term, secure
support.
21
20
Product Maturity
The product is mature in
the market and has a
steady or growing market
share and client base.
22
L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY
14
© 2015 CEB. All Rights Reserved.
DIAGNOSTIC ANATOMY SCORECARD
Insurance executives
should complete this
scorecard using the Policy
Administration Diagnostic
Anatomy tool.
15
Attribute Categories Alignment Attributes Potential Impact
Importance of
Improvement
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
12. User Interface
13. Dashboards
User 14. Reporting
Experience 15. Analytics
16. Geographic Support
17. Deployment Support
18. Security Compliance
Enterprise 19. Product Pricing
Support 20. Technology Innovation
21. Vendor Stability
22. Product Maturity
© 2015 CEB. All Rights Reserved.
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.
DIAGNOSTIC ANATOMY SCORECARD
Po
ten
tia
l Im
pac
t
5 = Very High
4 = High
3 = Moderate
2 = Low
1 = No Impact 1 =
Weak
2 =
Marg
inal
3 =
Adequate
4 =
Stro
ng
5 =
Superio
r
Current Effectiveness
Areas of Focus
16
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 The solution provides support for variable life insurance.
Life Insurance – Interest-Bearing Cash
Value Products The solution provides support for interest-bearing cash value products.
Life Insurance – Variable Cash Value
Products The solution provides support for variable cash value products.
Annuities – Deferred Fixed
Accumulation The solution provides support for deferred fixed accumulation insurance products.
Annuities – Deferred Variable
Accumulation The system provides support for deferred variable accumulation insurance products.
Annuities – Fixed Payout The solution provides support for term fixed payout insurance products.
Annuities – Variable Payout The solution provides support for term variable payout insurance products.
Life Riders – Long-Term Care,
Accidental, Death, and
Dismemberment The solution provides support for long-term care and accidental, death, and dismemberment insurance products.
Core Policy Lifecycle
Dynamic Questions for Data Input 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.
FEATURE AUDIT DEFINITIONS
© 2015 CEB. All Rights Reserved. 17
Feature Definition
Core Policy Lifecycle (continued)
Ongoing Processing The system supports policy processing (e.g., premiums, claims, policy changes, and investment functions).
Data Accessibility The system makes data accessible to functional stakeholders, including employees, agents, and auditors.
Product Management The system supports new and updated products with common and innovative features and guarantees.
Underwriting The system supports underwriting functions and systems with data needed for policy decisions.
Operational Support
Distribution The system supports multiple distribution channels and data interchange with external producer systems.
Forms/Document Library The system has a library of common forms and documents, including industry standards (e.g., ACORD) and data
exchange standards (e.g., XML).
Forms/Document Generation The system has capabilities to enable generation of standard or custom documents and forms.
Customer Information Search The system allows authorized users to search for current and historical customer information, including “as-of” searches.
Historical Customer Data Storage The system stores historical customer information to allow carriers to track changes over time.
Rules Engine The system has a built-in rules engine that allows rules creation, editing, testing, and analysis.
Internal Process Management The system has built-in BPM (or links to external BPM) capabilities that allow creation, editing, testing, and analysis of
process automation.
External Process Management The system uses an external BPM solution with capabilities that allow creation, editing, testing, and analysis of policy
administration process automation.
Audit Trails The system keeps a record of the sequence of activities that have affected each policy file in the system.
Pre-Integration with Third-Party Data
Providers
The system is pre-built with interfaces to load in data from common third-party data providers, including MIB or credit
rating agencies.
FEATURE AUDIT DEFINITIONS
© 2015 CEB. All Rights Reserved.
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
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
© 2015 CEB. All Rights Reserved.
Offered Native
Not Currently Offered and No Plans
To Be Offered in Next 12 Months
Offered Premium
Offered Partner
To Be Offered in Next 24 Months
19
© 2015 CEB. All Rights Reserved.
ORACLE INSURANCE POLICY ADMINISTRATION ORACLE
Key Statistics
Company Type: Public
Year Founded: 1977
Headquarters: San Francisco, CA
Number of FTEs: 115,000+
Company Overview
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-the-
box 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.
Sources: Oracle, CEB Analysis.
20
<$100
Million
$100-999
Million
$1-9.99
Billion
>$10
Billion
N/A N/A N/A N/A
Distribution of Clients by
Net Premiums Written
Distribution of Clients by Region
0-4% 20-39% 60-79%
5-19% 40-59% 80-100%
Current
Market
Future
Investment
Vendor
Landscape
Product
Rankings
ROADMAP FOR THE PRESENTATION
© 2015 CEB. All Rights Reserved. 21
© 2015 CEB. All Rights Reserved.
“Best-in-Class”
Policy Lifecycle
“Best-in-Class”
Enterprise
Support
“Best-in-Class”
User Experience
“Best-in-Class”
Operational
Support
AT
TR
IBU
TE
S
Mis
sio
n C
riti
cal
Data Input
Data Accessibility
Illustration Access
Product
Management
Distribution Product Pricing
Vendor Stability
Str
on
g P
rio
rity
Underwriting
Ongoing
Processing
Document and
Forms
External Data
Geographic
Support
Reporting
Deployment
Support
Technology
Innovation
Dif
fere
nti
ato
r
Issue and Invest Workflow
Analytics
Dashboards
User Interface
Product Maturity
Security
Compliance
CREATING OUR “BEST-IN-CLASS” PRODUCT RANKINGS
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.
CA
TE
GO
RIE
S
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.
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.
Phase 3
Certain products are recognized
as “Best-in-Class” after scoring
each product based on its
performance at an attribute level.
Source: CEB Analysis.
22
© 2015 CEB. All Rights Reserved.
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, 1.0-5.0 Scale
Vendor Product Policy
Lifecycle
Operational
Support
User
Experience
Enterprise
Support
Oracle
Oracle
Insurance
Policy Administration 5.00 4.00 3.60 4.33
Vendor A Product A 4.57 3.75 3.20 3.83
Vendor B Product B 4.50 4.25 3.80 4.17
Vendor C Product C 4.43 3.75 2.80 3.50
Vendor D Product D 4.86 4.00 4.00 4.17
Vendor E Product E 4.86 4.75 4.40 4.17
Vendor F Product F 4.71 3.75 4.60 4.17
Vendor G Product G 4.57 3.75 3.80 4.33
Vendor H Product H 4.17 4.00 4.40 4.00
Vendor I Product I 3.67 3.00 2.60 3.00
Vendor J Product J 4.29 4.25 4.20 4.33
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.
= Best-in-Class in Anatomy Category
© 2015 CEB. All Rights Reserved.
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.
“BEST-IN-CLASS” ACHIEVEMENTS FOR ORACLE
Category Scoring Analysis
Policy Lifecycle
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.
Enterprise
Support
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 role-
based 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
© 2015 CEB. All Rights Reserved.
Policy Lifecycle
User Experience
Data Input
The system supports
manual, online, and
automated input of policy
setup data including
features and investments.
Underwriting
The system supports
underwriting functions and
systems with data needed
for policy decisions.
Illustration Access
The system can access
historical policy illustration
data and premium quotes
from external tools.
Product Management
The system supports new
and updated products with
common and innovative
features.
Issue and Invest
The system supports policy
issuance with common
product guarantees and
investments.
Ongoing Processing
The system supports policy
processing (premiums,
claims, policy changes, and
investment functions).
Data Accessibility
The system makes data
easily accessible to
functional stakeholders,
including employees, agents,
and auditors.
6 5 4 3 2 1
Dashboards
The system presents users
with role-specific dashboards
displaying key metrics and
allowing process actions.
7
Reporting
The system supports bulk or
ad-hoc reporting capabilities
for financial, operational, or
compliance needs.
Analytics
The system collects and
analyzes policy data to
produce meaningful
operational insights to
improve processing.
Geographic Support
The system provides
support for multiple
currencies, languages, and
other geographic variations.
Deployment Support
The vendor offers on-site,
hosted, or cloud options
with support during and
after implementation.
Security Compliance
The system provides audit
trails, information controls,
compliance tools, and
roles-based access.
14 16 17 18 13
Ente
rpris
e S
upport
Opera
tional S
upport
15
Distribution
The system supports
multiple distribution
channels and data
interchange with external
producer systems.
Documents and Forms
The system can input,
manage, and produce
policy documents and
forms in hardcopy and
digital formats.
External Data
The system integrates
third-party data including
investments and financial
data supporting features
and guarantees.
9
10
8
Workflow
The system has advanced
workflow management to
model, automate, monitor,
and adjust policies.
11
User Interface
The UI is intuitive and
configurable with views of
transaction entry screens,
current, and historical data.
12
Product Pricing
The vendor offers flexible
pricing for ongoing support
and price discounts for
additional purchases.
19
Tech Innovation
The vendor has a proven
innovation track record, a
market-leading roadmap,
and resources for long-
term support
Vendor Stability
The vendor has an
established presence,
sound financials, and can
provide long-term, secure
support.
21
20
Product Maturity
The product is mature in
the market and has a
steady or growing market
share and client base.
22
L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY
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”
Tier 2 Attributes
“Strong Priority” Tier 3 Attributes
“Product Differentiators”
Data Input
Illustration Access
Product Management
Data Accessibility
Distribution
Product Pricing
Vendor Stability
Underwriting
Ongoing Processing
Documents and Forms
External Data
Reporting
Geographic Support
Deployment Support
Technology Innovation
Issue and Invest
Workflow
User Interface
Dashboards
Analytics
Security Compliance
Product Maturity
25
© 2015 CEB. All Rights Reserved.
UNDERSTANDING OUR SCORING METHODOLOGY
Policy Administration Systems Technology Analysis Internal Scoring Guide
Illustrative 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.
An
ato
my
Category Policy Lifecycle Operational Support
Attribute
Title Data Accessibility Workflow
Attribute
Definition
The system makes data easily accessible
to functional stakeholders, including
employees, agents, and auditors.
The system has advanced workflow
management to model, automate,
monitor, and adjust policies.
Sco
rin
g M
etr
ic
5 The solution allows users to search and access
policy information, and report on the search
results.
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.
3 The solution stores and presents historical policy
data to authorized users, but it requires
programmatic changes.
The technology has tools that allow carriers to
balance workloads and assign tasks to
appropriate users.
2 The solution makes data easily accessible to
functional stakeholders, including employees,
agents, and auditors.
The technology has advanced workflow
management to model, automate, monitor, and
adjust policies.
1 The solution does not make data easily accessible
to functional stakeholders, including employees,
agents, and auditors.
The technology does not have advanced workflow
management to model, automate, monitor, and
adjust policies.
Attribute Score: 5.0 3.0
SCORE
Source: CEB Analysis.
26