Vietnam – Aligning Technology to Insurance Business

Vietnam – Aligning
Technology to Insurance
Business
By: Ravindra Mohan
Email : [email protected]
www.aetins.com
FIC Conference – Hanoi
18th Jun 2014
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Aetins Video
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What AETINS does?
AETINS provides IT
Solutions &
Consultancy for
Insurance Companies
and Takaful Operators
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What does AETINS stand for?
AETINS = Acronym for
Assured ETernal INsurance Solutions
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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
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AETINS Expertise
Insurance
Products
Insurance
Data
Business
Scenarios
Insurance
Process
Insurance
Rules
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Agenda
1. Industry Problem/Opportunity
2. Insight into Insurance Business
3. Aligning IT to Insurance Business
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Penetration
Protection Gap
Persistency
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Penetration
Protection Gap
Persistency
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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
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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
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Agenda
1. Industry Problem/Opportunity
2. Insight into Insurance Business
3. Aligning IT to Insurance Business
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Role of IT towards Insurance Business
COSTS
REVENUE
PERCEIVED
VALUE
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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
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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
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Improve Perceived Value - Example
Need Based
Protection
Hassle Free Claims
Proactive
Communication
Continuous
Customer
Education
Regular
Meaningful
Engagement
Loyalty Programs
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Agenda
1. Industry Problem/Opportunity
2. Insight into Insurance Business
3. Aligning IT to Insurance Business
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Separation of Concerns
Core System
Front End Systems
(Backbone)
(Face)
Configurable
Portable
Flexible
Simple to Use
Synchronized
Real Time(STP)
Mature
Agile for Change
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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.
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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
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Universe for General Insurance Products
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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
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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
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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
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Insurance Solution Framework (ISF)
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Customer Oriented Process
What User Does in most Cases?
Enter Data
Review Data
Collect
Premium
Print Policy
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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
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Our Experience
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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
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AETINS offer
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Many Questions
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