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Centralized product repository and Rating engine for leading insurance firm
ValueMomentum assisted Client build a centralized repository of products and rating solution for use in multiple lines of business introducing flexibility, innovation and speed-to-market

Industry
Insurance

Client
Leading insurance company in India

Needs addressed
Product Definition and Configuration

• The client is one of the top general insurance companies in India covering multiple lines of businesses including Motor, Personal Accident, Health, Home, Fire, Engineering and Marine. With the growing business volumes, de-tariff process, intense competition, and various channels and systems of policy issuance and servicing, the client was experiencing performance and stability issues with their current platform.
• As part of the technology road map and architecture, the client was looking at implementing a state of art solution with capability to delink the product configuration, business rules and rating from the legacy application, and make it configurable. In addition, there was a need for implementation of a work flow based system to enhance controls and also improve the productivity for policy issuance.
• ValueMomentum had assisted the Company to successfully complete an initiative to implement an SOA based e-Policy Administration System (ePAS) that provides a single policy transaction system for all lines of business for all the business channels. This system also allows the client to externalize key product decisions and consolidate their business policy decisions (related Product Configuration, Underwriting and Rating) for multiple product lines.
• Externalization has helped create a single version of truth for all product configurations, underwriting and rating decisions. The solution is built using the SOA paradigm, allowing the client to cater to take a business services driven approach and manage changing business conditions effectively.

Technology Solution delivered
iFoundry Rating,,iFoundry Product Lifecycle Management

Overall solution had the following components:

• Web based Front end system allowing for policy issuance, policy endorsements and renewals for over 100 products across Motor, Health, Personal Accident Home, Fire and Engineering lines of Lines of Business (LOB).
• The front end system leverages process flows and services integrated using a service bus, provided by SUN JCAPS platform.
• Product Configuration and Rating is externalized and managed using a product configuration & rating engine, provided by ValueMomentum’s iFoundry platform.
• Underwriting & Eligibility rules are externalized and managed using a BRMS, provided by JBOSS Rules platform.

Innovative Use of Technology

• Dynamic Business Process Flows using the Sun JavaCAPS BPMS System,
• Product Configuration, Rating and Underwriting externalized by using iFoundry and JBoss Rules platforms. This allows for IT/business to manage new product rollouts, underwriting guidelines and rating logic without any programming effort. These changes can be managed by the business team without any programmatic changes.
• BRMS technology is leveraged for externalizing the business rules. Rules Management Application (RMA) is provided for manage the rules without need of any programming changes. Changes are done rapidly, and in one system, thus ensuring single version of truth.

Execution model
At site, Fixed price contract

Technologies used

SYSTEM	TECHNOLOGY	COMMENTS
FRONT END	J2EE COMPLIANT APPLICATION	POLICY MANAGEMENT SYSTEM
PRODUCT CONFIGURATION & RATING ENGINE	VALUEMOMENTUM IFOUNDRY ENGINE(S)	FOR PRODUCT CONFIGURATION AND RATING
BRMS	JBOSS RULES	RULE ENGINE
MIDDLEWARE	SUN JAVACAPS	BPMS AND ENTERPRISE SERVICE BUS
DATABASE	ORACLE 10G	DATASTORE

Benefits delivered

• Improved market share
  • With the new system, the client is able to implement quick & consistent changes to the policy guidelines, introduce new campaigns and fine tune existing campaigns/products. Average time for rollout of a new product (example in case, a new Health campaign) has gone down from a week or more, to one to two days
  • Significant improvement in productivity of policy processing – around 40%
  • The Self service option enable to intermediaries to issues policies online significantly reducing the time from 3 to 4 days to around 15 mts
• Cost savings
  • Overall cost savings are in terms of:
  • Higher productivity of business users – The average time taken to issue a policy from the system by has gone down by 40%, thus improving productivity of up to 30 to 40%.
• Improved customer service
  • The application has been extended to the intermediaries and rule based access and processing enabled for self servicing thus significantly reducing the time to service.
  • Policy processing is faster as straight through underwriting decisions are system driven. This would lead to faster turnaround times and higher customer satisfaction.
• Employee Productivity
  • The configurable work flow allows the allocation of underwriters work based on expertise and skill set and thus has contributed to a significant reduction on the key underwriting resource time on non value added activities. The saving has been to the tune of more than 30%.
  • The uptime and scalability of the solution has enhanced the in-house processing capability and has resulting in significant savings in terms of resource cost as part of the in house operations 40% with improved controls.

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