Vietnam – Aligning Technology to Insurance Business By: Ravindra Mohan Email : mohan@aetins.com www.aetins.com FIC Conference – Hanoi 18th Jun 2014 © Copyright AETINS . All rights reserved. Aetins Video © Copyright AETINS . All rights reserved. What AETINS does? AETINS provides IT Solutions & Consultancy for Insurance Companies and Takaful Operators © Copyright AETINS . All rights reserved. What does AETINS stand for? AETINS = Acronym for Assured ETernal INsurance Solutions © Copyright AETINS . All rights reserved. Why AETINS? Focused exclusively in Insurance Industry 17 Years of Insurance Core Systems experience Greenfield/Start-up Companies Large Established Local Companies MNCs Expertise in Insurance Process Global Experience 100% Success in Implementation Awards & Certifications © Copyright AETINS . All rights reserved. AETINS Expertise Insurance Products Insurance Data Business Scenarios Insurance Process Insurance Rules © Copyright AETINS . All rights reserved. Agenda 1. Industry Problem/Opportunity 2. Insight into Insurance Business 3. Aligning IT to Insurance Business © Copyright AETINS . All rights reserved. Penetration Protection Gap Persistency © Copyright AETINS . All rights reserved. Penetration Protection Gap Persistency © Copyright AETINS . All rights reserved. Insurance Revenue as Percent of GDP 18 16 16.70 14 12 10 8 7.60 6 4 2 0 4.20 Life General total 5.00 1.10 1.60 © Copyright AETINS . All rights reserved. Projection CURRENT DATA Current Insurance Market Target 3% of GDP by 2015 Source : IMF Statistics Target 4% of GDP by 2020 2.2 Billion USD 4.5 Billion USD 7 Billion USD Ref : Decision 193 © Copyright AETINS . All rights reserved. Agenda 1. Industry Problem/Opportunity 2. Insight into Insurance Business 3. Aligning IT to Insurance Business © Copyright AETINS . All rights reserved. Role of IT towards Insurance Business COSTS REVENUE PERCEIVED VALUE © Copyright AETINS . All rights reserved. Capabilities of an Insurance Company Business Management Products & Marketing Channel Management Operations Management Finance Support Services Enterprise Services Products & Pricing Sales New Business Billing & Collections Actuarial Company Admin Marketing & Branding Commissions & Compensation Underwriting Payments Reinsurance Risk Management Customer Education Channel Support Contract Admin Investment & Reserves Information Technology Partners & Procurement Claims General Ledger Documents & Records Customer Services Financial Reporting Stakeholder Reporting Advertising Increase Revenue ENTERPRISE SUPPORT Human Resource Mgmt Project Management Reduce Costs Improve Perceived Value © Copyright AETINS . All rights reserved. Insurance Cost Stack Customer Cost Stack Primary Solution Overhead Costs BI, Enterprise Portals Fund Management Costs Automate Fund Mgmt Claim Process Costs Rules Engine and Partner Collabortion Servicing Costs Distribution Portals, Self Service Portals Collection/Payment Costs Auto Debits/Credits Underwriting Costs Auto Underwriting/STP Acquisition Costs Distribution Portals, Packaging, Self Purchase Capital Costs CRM, Sales Volume Essential Costs Mortality Costs Free Protection © Copyright AETINS . All rights reserved. Improve Perceived Value - Example Need Based Protection Hassle Free Claims Proactive Communication Continuous Customer Education Regular Meaningful Engagement Loyalty Programs © Copyright AETINS . All rights reserved. Agenda 1. Industry Problem/Opportunity 2. Insight into Insurance Business 3. Aligning IT to Insurance Business © Copyright AETINS . All rights reserved. Separation of Concerns Core System Front End Systems (Backbone) (Face) Configurable Portable Flexible Simple to Use Synchronized Real Time(STP) Mature Agile for Change © Copyright AETINS . All rights reserved. Data Management for Insurance Long Term Business Continuous Learning Legal and Compliance Requires Requires Requires Accurate Data & Information Management Completely Managed by Core System with Audit Trails. © Copyright AETINS . All rights reserved. Universe for Life Insurance Products Gratuity Personal Accident Annuity Child Education Hospital & Surgical Term Endowment, Whole Life Universal Life Mortgage Joint Life Investment Linked (ILINK) Product can be sold as Individual Life, or Multiple Life, or Group Life © Copyright AETINS . All rights reserved. Universe for General Insurance Products © Copyright AETINS . All rights reserved. Multiple Core Systems and Integration Channel Portal Employee Portal Customer Portal Panel Clinic CRM Billing Collections Payments Channel Management Claims Reinsurance Business Intelligence Product Management Enterprise Reporting Workflow Document Management Functional Core Systems Policy Admin Core Systems – By Line of Business Core Life Core Unit Linked Core Group Investment Management Core Health Core General Core Others General Ledger © Copyright AETINS . All rights reserved. Multiple Core Systems-Challenges Licensing Integration Costs Maintenance • Platform Licensing (Not Optimum) • Application Licensing • Permutations & Combinations • Each System needs min TWO people • IT Support Staff for House Keeping © Copyright AETINS . All rights reserved. Web Services Partner Management Payments Collections Billing Reinsurance Claims Servicing New Business Lines of Business Channel Management Functionality Product Management What if One Core System can Holistically Serve? Traditional Life Unit Linked Group Life Medical General Retail General Commercial © Copyright AETINS . All rights reserved. Insurance Solution Framework (ISF) © Copyright AETINS . All rights reserved. Customer Oriented Process What User Does in most Cases? Enter Data Review Data Collect Premium Print Policy © Copyright AETINS . All rights reserved. Extensive Benefits Launch New Products in Days Auto Underwriting – Above 80% On Spot Service (STP) Merge Departments Pay Commission Daily Serve CustomerNot Policy Empower Distribution Simplify Maintenance Reduce IT Costs © Copyright AETINS . All rights reserved. Our Experience © Copyright AETINS . All rights reserved. ISF Maturity Contribution • 600 Man Years of Effort – Ongoing • 18 Insurance companies and growing. Flexibility • All Types of Products • End to End support of Functions Processes • 700+ Processes covering different LOB • 5000+ Rules, Validations & Controls Create Destroy Preserve © Copyright AETINS . All rights reserved. AETINS offer © Copyright AETINS . All rights reserved. Many Questions © Copyright AETINS . All All rights reserved. © Copyright AETINS,. rights reserved. © Copyright AETINS . All All rights reserved. © Copyright AETINS,. rights reserved.