Celent Model Insurer Asia 2012

Case Studies of Effective Technology Use in Insurance
by Wenli Yuan, January 11, 2012
Case Studies
Asia-Pacific

Abstract

Seventeen Model Insurer Components are described in this second annual edition of the report covering the Asia-Pacific region.

Insurance in the Asia-Pacific region faces its own set of business challenges, and insurance technology has evolved along a distinctive path. In a new report, Model Insurer Asia 2012: Case Studies of Effective Technology Use in Insurance, Celent recognizes 17 insurance technology initiatives as “Model Insurer Components.” These best practices in the use of technology span key areas of the product and policyholder lifecycle, including business rules/business process management, claims, distribution, IT management, marketing, policy administration, product design/ definition, reinsurance and risk management, service, and underwriting. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.

In this report, Celent offers some key best practices in the use of technology across various areas of the industry—whether in components of the product and policyholder lifecycle or general areas such as IT infrastructure and management—that a “model insurer” would use. These areas are illustrated by case studies of specific initiatives and capabilities, selected from the many submissions and presented in this report as Model Insurer Components.

Model Insurer Asia Components 2012:

  • AIA Australia: Implementing a rules-driven, STP platform creating a simple and easy-to-use life insurance online application tool tailored for the group insurance market.
  • Baoviet Holdings: Implementing a modern policy admin IT platform and shifting the business model from a decentralised “federation” of branches into single, state of the art Centralised Operation Centre delivering best practice and cost efficiencies from the Headquarters.
  • Calliden Group Limited: Effectively managing IT, driving successful conversion from three legacy systems to a completely new IT platform architected around an innovative, online rating engine.
  • China Continent P&C Insurance Co.: Implementing a motor underwriting system by integrating BPM with content management, business intelligence solution, and rules engine to improve operational efficiency as well as enhance risk management.
  • HDFC Standard Life Insurance Co. Ltd.: Implementing a system to increase persistency and provide support to intermediaries and support staff to retain customers and collect premium in a more seamless fashion.
  • Huatai Life Insurance Company Ltd.: Implementing a rules management platform to realize automatic underwriting and positioning for reuse in automatic claims and commission calculation.
  • IndiaFirst Life Insurance Company Ltd: Establishing an interactive and intuitive self-service digital channel to support pre-sale, sale, and post-sale service to customers.
  • JLT Reinsurance Brokers Limited: Effectively implementing a Dynamic Financial Analysis solution to enable successful business expansion.
  • Lifenet Insurance Company: Implementing an online cloud-based life insurance application system enabling direct sales of life insurance products to customers via Internet.
  • Macquarie Life: Implementing a rules-driven STP platform facilitating time to market of innovative products and expending distribution channel.
  • New India Assurance Co. Ltd.: Consolidating systems into one core platform to support companywide standards and improve services to both customers and distribution channels.
  • PICC Health Insurance Company Ltd.: Implementing a medical insurance platform to enhance automated claim processing and improve claim risk management.
  • Prudential Life Insurance Company of Korea: Implementing a complete system modernization initiative to enhance functionality and flexibility.
  • PT Prudential Life Assurance, Indonesia: Implementing a workflow automation initiative to enhance operational efficiency for new business and claims.
  • Tata AIG General Insurance Company Ltd: Implementing a customer relationship management platform to synchronize multiple channels as well as increase cross-selling and up-selling opportunities.
  • Tata AIG General Insurance Company Ltd: Increasing online sales by engaging various marketing activities to promote an STP online travel insurance platform containing products clearly targeting different customers.
  • Union Assurance PLC: Externalizing product configuration, rating, and underwriting to achieve flexibility and reduce time to market.

“Effective use of technology is more important than pursuit of technology for its own sake,” says Wenli Yuan, Senior Analyst with Celent's Asian Financial Services Group and author of the report. “This is the common thread among every selected Model Insurer component, and a decision each insurer should be proud of.”

“This year marks the second time Celent has applied our globally recognized Model Insurer methodology to honor technology initiatives in Asia,” adds Neil Katkov, PhD, Senior Vice President, Asia for Celent. “We received a broad range of submissions, so we are confident that the winning initiatives represent state of the art in insurance technology in the region.”

Nominations for Model Insurer Components were accepted beginning in July 2011, and the Celent insurance team selected the 17 winning initiatives based on the business benefits provided. Each Model Insurer Component is described in a brief write-up within the report, including detailed descriptions of business drivers, technology environments, and quantitative success metrics.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America (Boston)
Tylor Tourville
ttourville@celent.com
Tel.: +1 617 424 3284

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)208 870 7875

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81.3.3500.3023

Table of Contents

Executive Summary

3

Introduction

5

Common Best Practices and Results

8

 

Industry Data Standards

8

 

Optimization of Infrastructure

9

 

Positioning for Reuse

9

 

Automation, STP, and System Integration

10

 

Data Transparency and Compliance

11

 

Improved Use of Channels

11

 

Risk Management Through Proper Development, Testing, and Project Management

12

 

Solicitation of End User Feedback and Review

13

 

Use of Metrics

13

 

Higher Productivity, Lower Staff Expenses

13

 

Increased Revenue or Market Share

14

 

Faster Cycle Times and More Consistent Processes

14

 

Better Decisions, More Accurate Pricing, Reduced Losses

14

 

Decreased Time to Market

15

 

More Efficient Document/Content Creation

15

 

Improved Agent/Customer Satisfaction and Adoption

16

 

Compliance and Reduction of Market Conduct Penalties

17

Model Insurer Asia Components 2012

18

Business Rules / Business Process Management

20

 

Huatai Life Insurance Company Ltd.

21

 

PT Prudential Life Assurance, Indonesia

23

Claims

27

 

PICC Health Insurance Company Limited

28

Distribution

31

 

IndiaFirst Life Insurance Company Limited

33

 

Lifenet Insurance Company

37

 

Maquarie Life

40

IT Management

43

 

Calliden Group Limited

44

Infrastructure/Architecture

49

Marketing

50

 

Tata AIG General Insurance Company Ltd.

51

Policy Administration

55

 

Baoviet Holdings

56

 

New India Assurance Co. Ltd.

60

 

Prudential Life Insurance Company of Korea

63

Product Design/Definition

67

 

Union Assurance PLC

68

Reinsurance and Risk Management

74

 

JLT Reinsurance Brokers Limited

74

Service

79

 

AIA Australia

80

 

HDFC Standard Life Insurance Company Limited.

83

 

Tata AIG General Insurance Company Ltd.

87

Underwriting

91

 

China Continent P&C Insurance Co.

92

Conclusion

96

Leveraging Celent’s Expertise

97

 

Support for Financial Institutions

97

 

Support for Vendors

97

Related Celent Research

98

Sign in to download reports and access personalized information