Making a difference in driving optimal Insurance results · Documaker Server Oracle Documaker Enterprise How it all fits together for next generation document automation Customer

Copyright © 2012, Oracle. All rights reserved.

Making a difference in

driving optimal Insurance

results

21st May 2013

Glenn Lottering – Senior Director

[email protected]

Copyright © 2012, Oracle. All rights reserved. 2

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement


Agenda

• Top level commitment through the

organisation to the customers

• Insurance products complementing the

core banking products

• Specialised sales force for more complex

advised solutions


Top Business Drivers for Insurance Industry

Underwriting Gain (Loss), 1975–2011*

Source: LIMRA

Underwriting losses in

2011 is the largest since

2001

* Includes mortgage and financial guaranty insurers.

Sources: A.M. Best, ISO, Insurance Information Institute

Q: In what ways could you offer more value to your clients if you were

not limited by your current IT systems?

Source: Oracle Insurance

Industry Survey, 2011

Source: Deloitte Solvency II Survey, 2011

-$55

-$45

-$35

-$25

-$15

-$5

$5

$15

$25

$35

75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 1011*


• Banks will spend in excess of US$50B to address the risk management platforms

• Insurers will spend in excess of US$30B to address the risk management platforms

• New capital and liquidity regulations will take 10-15% of annual IT spend

• Regulatory Requirements will force a rebalancing of business focus

• Reserve risk management continues to dominate the conversation in Insurance

• Few insurers have instituted climate change models

Enterprise Risk

Financial Services Trends

• Fewer of the Top 100 banks have cost to income ratios under 50%

• Banks with streamlined back-office “factories” at 25-50% of original unit costs

• While increasing revenue is the number one primary goal for all insurers, they expect to be able to reduce expenses at the same time

Operational Efficiency

• E7 countries drive revenue growth for Tier 1 Institutions

• Deposits to grow in excess of US$100T • Revenue in NA for P/C and Life will be

relatively flat • Insurers are looking for alternative markets • Commercial insurance leading property

insurance in US

Revenue Growth

• Social media is playing a key role in profiling and enabling intelligence for customer interactions

• Embedding the services in the Financial Supply Chain

• Ovum predicted online banking, and it turned out to be, the fastest growing segment in 2012 rising 5.3% to reach US$8.3B by end of the year

Customer Experience

• ICB Ring Fencing of UK Banks • The Dodd-Frank Act • Account Portability • Solvency II • Basel III • FATCA • IFRS 4 and GAAP • Data Protection Act • Retail Package – Consumer protection

regulations affecting

Compliance to Regulations

• In an effort to fight flat industry revenues, insurers are investing in distribution management to enable growth

• 2009 FinTech study estimated customer acquisition costs between US$140 (online) to US$350 (in branch)

• Multi-channel is being embraced with cross channel management as essential

Distribution Management

5 | © 2012 Oracle Corporation. Confidential. Not for Circulation.


Insurance Market Dynamics

OPERATIONAL EFFICIENCY

• Rapidly develop and deliver profitable and compliant products

• Expand and align distribution channels to serve new and existing profitable markets

• Streamline policy life cycle to reduce operational costs while increasing customer satisfaction

• Regulatory capital and risk requirements (Regulators implementing Solvency II)

• Global accounting standards (IASB, IFRS 4, GAAP)

• Managing catastrophes and market turmoil

• Retail Distribution Review (RDR)

• Data Protection

• “Retail Package” – Consumer Protection

• IT simplification & system consolidation

• Legacy modernization & process simplicity

• 360° views of customer and business

Life, P&C,

Benefits & Health

Insurance


Leveraging the opportunity Deploying an adaptive enterprise

Manage your business effectively, transparently, and securely

Proactively manage efficiency and distribution

Improve transparency and

embed risk management

Accelerate go to market

<Insert Picture Here>

Challenges for Insurance

Changing customer

expectations due to the real

time world

8

© 2012, Oracle Corporation. All rights reserved. This document is provided for information purposes only.

What Happens in an Internet Minute?


Source: Intel, http://www.intel.com/content/www/us/en/communications/internet-minute-infographic.html

9

http://www.intel.com/content/www/us/en/communications/internet-minute-infographic.html





Multi Channel Communications P

UB

LIS

HIN

G T

RE

ND

S


10

Two-Way

Old World was One Way and Slow

New World is Two Way and Real Time

RE

AL T

IME

DA

TA


11

Social and Real Time Alerts R

EA

L T

IME

PU

BL

ISH

ING

For example:

Customer

satisfaction

Closer

relations

Lower cost to

serve

12

Analytics and BI Required Everywhere

FO

CU

S

For example:

Customer usage

Demand

mapping

Troubleshooting

Lifetime value

TCO


13

Blurring of EDA, ECM and Collaboration E

DA

& E

CM

TR

EN

DS


14

Managing the Customer Experience C

US

TO

ME

R E

XP

ER

IEN

CE

For example:

Inform Customers

e.g. Regulatory

Changes

Offer Self Service

for usage

eSignature

For example:

Identify Abnormal

activity

Offer Alerts

Solvency and

Churn

For example:

Analytics to

support customer

profiling

Guided problem

resolution

Solve Problems


15


About Oracle Insurance

• Dedicated Insurance team

• End-to-end Insurance solutions • Sales and service

• Administration and claims

• Financials and Human Capital Management

• Enterprise infrastructure

• Deep Insurance domain expertise

20 of the top 20

Fortune 500 insurers use Oracle applications


Key Insurance Technology Drivers

• Insurance product innovation drives Core Systems

replacement projects across Life & General

Insurance sectors

• P&C projects have a strong rating and underwriting

transformation focus

• Globally, the need to cut operational costs drives

platform consolidation initiatives and data center

consolidation initiatives

• Strong regulatory focus on Solvency II and Retail

Distribution drives investments in core and

analytical platforms

Why Transform?


Oracle’s Response Investment and Product Innovation for Insurance


ESTABLISHING ORACLE

INSURANCE AS A GLOBAL

INDUSTRY MARKET LEADER IN

CORE SOLUTIONS

Our Mission Statement


Oracle Solutions for Insurance Industry

Policy Administration for Life & Wealth Products

Rating for General Insurance Products

Health Insurance Suite

Risk and Performance Management

CRM & Distribution Management

Enterprise Resource Planning

Enterprise Performance Management

Enterprise Document Automation

Operational Business Intelligence

Oracle Billing & Revenue Management

Insurance Data Exchange

Database

Application Server

SOA Suite

Security, Privacy & Identity Management

Business Process Management

Business Rules Management

Enterprise Content Management

Master Data Management

Business Intelligence

Self-Service Portals

Operating Systems

Virtualization

Servers

Storage


Hardware and Software Engineered to Work Together


Oracle Insurance in the Marketplace

Leveraging its investments in acquisitions, plus the widespread partner network, Oracle is expected to grow its presence in the insurance application market in the coming years.

Kimberly Harris Ferrante, Gartner Analyst

The Insurance Megavendor: New Hopes for Insurance, February 28, 2008

Select Oracle Insurance Customers

http://www.ing-usa.com/us/index.htm

http://www.farmers.com/


Oracle Policy Administration System


Ora

cle

Healt

h In

su

ran

ce

Pla

tfo

rm f

or

Tra

nsfo

rma

tio

n

Core Solutions

Product Configuration

Claims Pricing

Claims Ajudication

Alternative Reimbursement

Analytics

Supporting Solutions

• Rating

• Billing

• Document Management

Application Architecture for Distribution Management

Partner

Relationship

Management

Rating and

Underwriting

Policy Issue Marketing

Master Data Management

Collaborative Straight Through Processing

Enterprise Service Bus / BPM

Market Segmentation & Lead Generation

Policy Renewal

Sales Force

Automation

Document

Automation Fraud Detection

Real Time

Decisioning

Business

Intelligence Compliance

Integrated Quoting

Regulatory Compliance & Fraud Detection

Copyright © 2013, Oracle and/or its affiliates. All rights reserved. 26 #OracleFSI

Analytical Repository

Analytical Data & Reporting Architecture

Data Dictionary/ Meta Data

Source Systems

Policy Admin

Market Data

Claims

Asset Data

Data Staging

Area

Policy Risk ESG Assets Liabilities Actuarial

Tables

Processing Area

Results Area

Assumptions Data

Analytics

Solvency II

Regulatory

Reporting

Financial

Reporting &

Disclosure

Mgmt.

External Engines/Models

External Calculation Engines

Actuarial

Finance

EL

T

Dashboards

:

Risk

Actuarial

Investment

Manageme

nt

Ad-hoc

Analysis

Financial Adjustments

GL

Balances

Operational Data Bases

Financial Consolidation Engine & QMR

General Ledger

Data Quality

Checks

Manual

Adjustments

Internal Calculation Engine

Calculations

Stresses

Aggregations

Reporting

Results

Asset

Risk

Insbridge RateManager

Oracle Insurance Insbridge

Build and Manage Rates Execute Present

Impact Analysis

Insbridge SoftRater Custom Interfaces

Mainframe

Midrange

UNIX

Agents

Consumers

CSRs

Web/App

Servers

DB2 Oracle

SQL Server ANSI

Supports all major operating systems and databases

Actuaries

Product Managers

Analysts

Quality Assurance

Change Management

Documaker Server

Oracle Documaker Enterprise How it all fits together for next generation document automation

Customer Service Archive

/ retrieval

Business Application Documents

Interactive

Correspondence

End User Web-based Applets

Universal Content Management (UCM)

Oracle Fusion Middleware

SOA Suite: ESB, WS ADF Identity Suite

Systems Mgmt Oracle BPM

ODBC / JDBC

System Management

Dashboard

Analytics,

Reports:

Publishing Job Tracker

Ad

min

istra

tive

To

ols

Word-Based Authoring

Documaker

Studio

Au

tho

rin

g /

Des

ign

To

ols

Oracle 11G Database

Transactional Applications

(Dynamic Data)

App. Server

Pre-built Industry Content


Revenue Management and Billing for Insurance at a Glance

Insurance Source

Systems

Enrollment /

Eligibility

Policy

Admin

System(s)

Calculation Billing Receivables and

Collections

Journal

Creation

Payment

Applications

Billing

Engine

Invoice

Presentment

Products

Price Lists

Complete Integration and Auditability

Policy

Information

Complete

Invoicing Manage

Receivables

and

Collections

Add’l Billing

Information

(Commissions,

Fees, Taxes,

etc.) Internal

pricing

engines

Record

Accounting

3rd Party Billing feeds

Multi-Currency, Multi-Language


Consistent Service

Rapid Deployment

Effective Business

Management

Conclusion

• Adapt to new products/channels instantly

• Continuous, real-time audit

• Information access, when and where your channel needs it

• New products with no compromises

• Configurable content

• Business stability and growth in the face of change

Accelerate go to market

Improve transparency

and embed risk management

Proactively manage

efficiency and distribution


We Invite You to Join the Conversation Connect and Interact with Oracle Insurance

• All Year Long • Follow Us on Twitter – www.twitter.com/oracleinsurance

• Like Us on Facebook – www.facebook.com/oracleinsurance

• Join Our Group on Linked In – www.linkedin.com, and search

“Groups” for “Oracle Insurance.”

• Read our Blog – blogs.oracle.com/insurance

• Social networking provides an engaging way for customers and partners

to interact with Oracle, and offer a community for open discussion.


Questions


33