QBE Emerging Market’s Digital Transformation Journey … · QBE Emerging Market’s Digital...

QBE Emerging Market’s Digital Transformation Journey to Drive Sustained Profitable Growth via Pega 7

©2016 Pegasystems Inc.

Jason Little, SVP of Digital, Architecture & IT Strategy, QBE Emerging Markets

Julian Anderson, Head of Digital Innovation & IT StrategyQBE Emerging Markets

About the Presenters

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Julian AndersonHead of Digital Innovation & IT Strategy

QBE Emerging [email protected]

Hong Kong

Jason LittleSVP of Digital, Architecture & IT Strategy

QBE Emerging [email protected], Philippines

About QBE

3

OUR PURPOSEWe give people the confidence to achieve their ambitions

OUR VISIONTo be the insurer that builds the strongest

partnership with customers

• Global 20 insurer / reinsurer.

• Australian - Listed ASX

• 17,000+ employees globally

• Operations in 38 countries

• Focused on general insurance

• Diverse product mix

• Distribution via agents, brokers, financial institutions & direct to the public

QBE’s History with Pega

4

Shared Systems

Core Insurance

Channel Delivery

FinancialsData Warehouse

Document Mgmt.Customer Data

Reinsurance Credit Mgmt.

Social Media Mobile

AffiliateWhite-label

Broker / Agent WebCall

Centre

BPMProduct

&Rating

Underwriting Claims

Policy Admin Claims

• 2006 QMS Pilot Australia– Broker/Agent E-business platform– White-labeled web system– Call centre POS– Claims Management– Externalized Rating Engine

• Standardized Underwriting Process• 2014 Emerging Markets (Reuse)

• Pegaworld Washington 2014…

What We Will Cover Today…

5

• QBE Emerging Market’s business challenge

• What we have achieved so far…

• How are we making it happen?

• Applying our lessons learnt

• What’s next for us…


6

• QBE Emerging Market’s business challenge• What we have achieved so far…




QBE Emerging Markets

7

Profitable Growth Strategy

Em

ploy

ees

(EV

P)

Tech

nolo

gy &

A

naly

tics

Cen

tre's

of

Exc

elle

nce

Double GWPby 2020 (2 to 4 Billion USD)

MTP Agency Broker Bancassurance

Marine Specialty SME Personal Lines

Commercial / Corporate

Affinity

Group Shared Services

Cus

tom

ers

(CV

P)

Asia Pacific Region

(16 countries)

Latin American Region

(7 countries)

Our Profitable Growth Business Strategy

23 Countries

Our Case for Digital Transformation

8

Products / Underwriting

Sales & Distribution

Policy Admin & Credit Control

Claims

Customer Service

High Operating Cost

Current State Issues

Non Customer Centric

No consistency & scale between 23 countries

Inefficient manual paper-based processes

Too focused on the rear view

Emerging Markets – Core Operations

8

Language Timezone+ Regulatory

EM Country IT operations

23 x Countries

A Repeatable Digital Architecture

9

2 x Regional COEs

3 x Group Shared Service Centers

And Emerging Market’sGlobal hub & spoke operations model

…Demands a Repeatable Digital Architecturein 3 layers

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Customer Centric Omni-channel Services layer

…to Achieve our Profitable Growth

ambitions

Organisation Design Optimisation

Scale &Best Practice

Standardisation & Automation

Renewal Retention

Growth

Improved NPS

Customer & Business Intelligence “Brain” Services layer

Business Process Excellence Services layer

Core Core Core Core …x10Core Core

1

2

3

Surrounding

ChannelsCustomers

EM Country IT & Operations

1. Customer Centric Omni-channel Service layer

2. QBrain – Integrated Customer & Business Intelligence Services

SalesForce.com Qnect – Customer Self service platform

Data Assets

3. SmartQ – Integrated Business Process Excellence layer

Core Insurance x 10

SmartQ – Business Process Management

Visualization

Contact Centre

Next Best Action

Pricing & Product Engine

CMS (Electronic File)

Enterprise SearchSingle Customer View

Customer Service CRM

Scanning & Indexing

Enterprise Service Bus Automation & Robotics

Underwriting & Policy Processing Claims Credit Control Document

Processing

Sales support - Mashup

Cloud

BAM & Non-bound $ Operational

TBA (recent acquisition)

Pega’s Critical Role in Our Target ArchitectureMTP Agent Broker Bancassurance Customer /

Claimant Browser Mobile App

Email / Messaging

Systems B2B Social

10

Other

Pega

STP Services - Mashup Mobile


11


• What we have achieved so far…• How are we making it happen?



What We Have Achieved So Far…

12

QBE Underwriting Workbench (QUW)

• Common UW processes• In use 9+ years• 1600+ users (incl. GSSC)• Proven GWP uplift & efficiency

• SmartQ – Reuse Proven Processes+

• Modernised (Upgraded to Pega v7)• Re-architected Integration (SOA)• Enhanced User Experience (HTML5)• Localised & Capability uplifted

Implemented:• Malaysia• Singapore• Philippines

… continued country rollout & additional processes / features

Inflight Projects:• Hong Kong • Documents • Claims• Argentina

Australia (2007 – present) Malaysia (Pegaworld 2014) SmartQ – Today

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DEMONSTRATION


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• How are we making it happen?• Applying our lessons learnt


How Are We Making It Happen?

Common EM IT Operating Model – Digital COE

Innovating our Delivery Model

Enterprise Architecture – Design for Reuse, Playbook & Repeat!

1

2

3

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Shared KPIs

GWP Growth Sales Productivity Retention NCOR Operations

Efficiency ROIIT Unit CostNPS

enables

EM Profitable Growth StrategySales Excellence & Innovation Operational Excellence Risk & Investment Rigor

EM Portfolios

Asia Pacific

• Business Change

• Requirements

Ser

vice

sO

ptimizes

Digital COE

• Application development• Re-use: solutions &

playbooks• Adaptable Component-

based Application architecture

• Market research • Innovation &

ideation process• Transition to delivery

• Application maintenance• Throughput & transparency• Supply/demand mgmt

• Enterprise Architecture & Solution Design rigour maximising reuse

Architecture Services

Testing Services • Optimise system test services, maximising automation

Strategy & Innovation Services

Digital Application Delivery Services

Application MaintenanceServices

Common EM IT Operating Model – Digital COE

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CSC

Manila ADC

• Solution Design

• Application Development

• Testing• Integration• Maintenance

LATAM

• Business Change

• Requirements

Measured By

1

Innovating Our Delivery Model

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INSURANCE SERVICES

Convenience,Tailored to my lifestyle,

Fairer premiums

CUSTOMER PERSONA & NEEDS

CONTEXT & FEEDBACK

TOUCH POINTS & BEHAVIOURS

CUSTOMER JOURNEY&

UX DESIGN

2


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Idea

Wireframe

Working design

Prototype

Test and iterate

Project initiation

Rollout

Time / Effort

Agile Innovation

IndustrializedProject Delivery

12 weeks

Management decision

Sco

pe Innovation is a short pre-cursor to a project

2

Innovation is a Short Pre-cursor to a Project


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1Discover

Discover opportunities

2Ideate

Envision future

3Validate

Prototype & test

4Evaluate

Business case for

investment

▶ Run innovation cycle▶ Crowd source shortlist

▶ Crowd sourced refinement

▶ Formation of teams

▶ ▶ ▶

▶ Build prototypes▶ Test ideas▶ Customer Focus Groups

▶ Develop business case▶ Showcase▶ Seek investment

4 weeks 2 weeks 4 weeks 2 weeks

5Execute

Hand over to project delivery

▶

▶ Sponsorship for Project initiation

2

Our Innovation Process


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TOOLSVALUE (KPI’s)STRATEGIC THEME

SHOULD WE DO IT CAN WE DO IT

DO-ABILITY

Java / HTML5

Cloud

Analytics

GWP Growth

Productivity

Retention

BPM / MobileNCOR

Efficiency

NPS Integration / APIs

Sales & UW Excellence

Customer ServiceExcellence

Claims & Risk Excellence

Operations Excellence Agile Methods

Speed to market

Cost (MVP)

People / Partners

Skills

2

Our Ideation Assessment Framework: By [providing this service] for [these customers] will result in [this outcome]. We will know this is true when [this metric is met].


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2

Delivering with Geographically Dispersed Project Teams

Latin America Asia Pacific

P E G A

• Continuous innovationP I L O T

Architect for Reuse: Reduce TCO, Increase Agility

• 8 years of intellectual property from QBE Australia QUW. Reused across entire Australian (& offshore) business

Q B E S M A R T Q ( P e g a 7 )

Q B E Q U W A N Z O

L ATA M A S I A

M Y SA R G E N T I N A S GC O L O M B I A• Configure by

Regulatory, channel & core integration

P H H K

Spec

ializ

atio

nR

euse

• Language e.g., Spanish

• EM Pega 7 Common rules & processes

3

QBE’s Enterprise Architecture: Situational Layer Cake

24

25

Playbook Industrialization & Software Products


26




• Applying our lessons learnt• What’s next for us…

Lessons Learnt – Upgrading to V7

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Upgrades

• Upgraded (internally) 4.2 -> 5.4 -> 6.2 -> 7.2• Previously high degree of UI customisation • Underlying processes and business rules retained• We now conform to OOB as a principle

V7 & Responsive UI

• Significant improvements in version 7• We chose to throw away the old UI• To take 100% advantage of the new responsive UI • Enhancing old screens or reversing customisation takes more effort

Training

• Training - massive paradigm shift in UI configuration • Effort lost in developer discovery• Developers need to relearn so they don't repeat past mistakes• Make use of more productive features e.g., Data pages

Sustained Profitable Growth

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GWP Growth Due to:• Increase in quote to new business rates• Increase in renewal retention• Increase in new business opportunities

due to improvements in broker/agent satisfaction scores (NPS)

Productivity Savings Due to:• Increase % time spent new business vs. admin• Increase in # transactions processed per staff• Increase in GWP underwritten per staff• Reduced stationary and storage costs• Reduced staff training time

US

$m

Investment

AnnualGWP uplift

Expense Savings

MYS

What Benefits Are We Seeing?

X 10X 2

Achieving Reuse Benefits

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Cos

t (U

SD ’m

)

MYSAustralia

Reuse

Reuse of Assets and a Repeatable Delivery Process Are Key

… To Enabling the Business Case Emerging Markets Wide

SIN Ph

Playbook = x 14Reduction in cost

Benefits (U

SD ’m

)

Architecture = x 10Reduction in cost

Larger Markets drive upfront investment /

enhancements

Production Line = x 2-3 reduction is cost

due to scale

Tier 1 Markets

Tier 2 Markets

Tier 3 Markets


30






What’s next for Us (2016–17)?

31

ChannelsCustomers

EM Country IT & Operations

1. Customer Centric Omni-channel Service layer

2. QBrain – Integrated Customer & Business Intelligence Services

SalesForce.com Qnect – Customer Self service platform

Data Assets

3. SmartQ – Integrated Business Process Excellence layer

Core Insurance x 10

SmartQ – Business Process Management

Visualization

Contact Centre

Next Best Action

Pricing & Product Engine

CMS (Electronic File)

Enterprise SearchSingle Customer View

Customer Service CRM

Scanning & Indexing

Enterprise Service Bus Automation & Robotics

Underwriting & Policy Processing Claims Credit Control Document

Processing

Sales support - Mashup

Cloud

BAM & Non-bound $ Operational

TBA (recent acquisition)

MTP Agent Broker Bancassurance Customer / Claimant Browser Mobile

AppEmail /

MessagingSystems

B2B Social

Other

Pega

STP Services - Mashup Mobile

✓✓

GSSCManila

CebuColombia

Secure Integration

PegaAmazonCloud

DIGITAL COE

QBE COEs Sales, UW & Claims

SingaporeMiami

On the move! In-country CORE

INSURANCE(x10)

Asia Pacific Region(16 countries)

Latin American Region

(7 countries)

Referrals

Build & Deploy

Anywhere

SLAs

EXEC INSIGHT

Pega Cloud Pilot

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Supporting Our Hub & Spoke Operations

Telematics

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MobileSimple, Convenient, Relevant – Empowered

Next Best Action

34ES

B (o

ptio

nal)

Customer Touch Points

Best Action

Request

QNect (Pega Mashup/API)

Salesforce(Pega Mashup/API)

Contact Centers/IVR (Pega or 3rd Party)

Social Media

SmartQOperations Workbench

NBA AdvisorStandalone quick win UI

Real-time Analytics

Hola de Buenos Aires!

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THANK YOU

QUESTIONS?

QBE Emerging Market’s Digital Transformation Journey … · QBE Emerging Market’s Digital...

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