• June 1, 2020

Oracle Insurance Policy Administration for Life and Annuity Certified on Oracle Cloud Infrastructure

Mukul Kumar, Tanya Ho-wai, and Sunil Bemarkar

Oracle’s complete suite of insurance products Oracle Insurance Policy Administration For Life and Annuity (OIPA) are now validated and available on Oracle Cloud Infrastructure. OIPA offers a highly flexible, rules-based policy administration for life and annuity insurers, covering all critical policy administration functions. OIPA supports sales, policy issue, billing, collections, policy processing, revenue management, and claims across multiple lines of business in a single system.

Oracle Cloud Infrastructure is Oracle’s Gen 2 cloud, designed to provide insurance companies with security (FIPS 140-2 Security Level 3, HIPAA), rock-solid reliability, disaster recovery with data sovereignty, and powerful capabilities for large and complex deployments. All these features come with industry-leading price performance, approximately 50% lower TCO versus on-premises and Bring Your Own License (BYOL) for all database services. Insurance companies can now run their mission-critical, high-volume, and high-performance insurance solutions on Oracle Cloud Infrastructure.

OIPA: A Comprehensive, Trusted Solution

Leading insurance companies worldwide rely on OIPA to accelerate product development, reduce time to market, improve operational efficiency through centralized policy management and record keeping, and serve their customers and sales channels better.

OIPA offers a single unified platform to boost business agility and improve customer experience. Carriers are able to eliminate the need for multiple systems and benefit from centralized A graphic depicting a pyramid structure for OIPA services, consisting of OIPA Runtime Engine, Insurance Business Components, and Product rulesreporting, while plan members get a complete view of policies and group benefits. Also, OIPA’s open, web-based architecture is designed to integrate with other back-office systems and existing legacy systems. The architecture supports large-scale deployments and can scale to handle more than 100 million policies.

Oracle Financial Services OIPA applications help you stay focused on your customers and growth amidst rapidly changing market dynamics.

OIPA and Oracle Cloud Infrastructure: Better technology, Better Results

OIPA offers a robust intelligent subsystem, Cycle, for better and more efficient batch processing of insurance business events. Cycle is a high-performance distributed subsystem that employs the following methods to process all pending business events and policy types, such as Term, Whole Life, VUL:

  • Concurrency techniques
  • Multiple threads
  • Automatic failover
  • Automatic scaling
  • Real-time configuration changes

While most competing products require multiple batch processing for policy, billing, and so on, OIPA tracks interdependencies within the system and only requires a single batch run for all updates. So, OIPA can process an entire daily workload in under 60 minutes, which is at least three times better than most competing cloud and on-premises systems.

We tested OIPA on Oracle Cloud Infrastructure versus a comparable on-premises infrastructure for a diverse set of 5M policies (Variable Universal Life, Whole Life, and Term). We observed significantly better performance.

Better Performance with Superior Economics

A bar chart showing the comparison between business events process per minute on Oracle Cloud Infrastructure (OCI) and on-premises.

We were able to batch process 320 business events per second for end to end policy administration, ranging from simple to complex business events, such as billing, commission, and scheduled valuation. It processed 160 contracts per second, completing 550,000 contracts in under 60 minutes. We observed 26% improvement in business events per minute, compared to on-premises. The improvement was even more pronounced in simple transactions, with a 36% improvement.

Oracle Cloud Infrastructure excels in the following areas:

  • Performance: Customers can benefit from exclusive Oracle cloud products, such Exadata Cloud, Database RAC, and Autonomous Database for unmatched performance, reliability, and autonomous operations.
  • Economics: Customers can see an immediate positive impact on their EBITDA by transitioning to a lower-cost, consumption-based operating model. You can save money overall versus on-premises deployments, while simultaneously increasing your capacity for peak periods. When considering alternatives, Oracle also provides vastly superior economics to AWS.
  • Unified support: Oracle understands importance of quality support and business continuity for enterprises. Having Oracle applications on Oracle Cloud Infrastructure ensures engineering alignment for quick diagnosis and resolution of all issues—hardware, application, and network. This alignment mitigates risk of any business interruptions.
  • Global footprint: Customers can use Oracle Cloud’s global footprint and validated reference architectures to ensure data sovereignty, disaster recovery, and enhanced availability, improving the user experience tremendously. Hybrid cloud options can further meet data sovereignty requirements.
  • Colocation with your other applications: Oracle is committed to supporting all Oracle applications on the cloud. Oracle understands the complexity of enterprise applications. Having them all on Oracle Cloud Infrastructure not only delivers better performance, but also ensures that customers don’t have to traverse multiple disparate infrastructure environments.
  • Full stack roadmap: Oracle Cloud Infrastructure has been built ground-up to ensure better performance of Oracle applications, can use cloud native capabilities that are offered free or at a significant discount to competitors, such as identity, security, and data science.  Oracle’s data platform is a collection of fully managed cloud native services on Oracle Cloud Infrastructure, allowing you to capture and manage all the data assets effectively and efficiently. This capability enables enterprises to build, train, and manage machine learning models. Oracle's roadmap across applications, data management, and infrastructure ensures that customers continue to benefit from more services over time.

Highly Available OIPA Deployment is Simple with Oracle

OIPA and Oracle financial solutions can be customized based on customer’s needs. However, a typical OIPA deployment consists of a database layer with cross-availability domain high availability and cross-region redundancy, with the application layer using the resilience of Kubernetes clusters.

The following diagram depicts a typical OIPA deployment:

A screenshot showing an Oracle Insurance Policy Administration deployment.

Your Path to Cloud Flexibility, Security, and Economics

Oracle Cloud offers the opportunity to streamline operations, improve performance, and reduce costs, enabling businesses to focus on winning their business every day. The ease of consumption, immediate improvement in EBITDA, highly scalable and secure environment that meets stringent regulatory requirements, and single vendor setup for applications and infrastructure all make Oracle Cloud a compelling option for customers.

To learn about their options for cloud migration, existing Oracle OIPA customers should discuss their infrastructure plans and product road map with their Oracle representative. The entire migration process is validated and only takes a few weeks, enabling customers to realize immediate cost and performance benefits.

For more information, see the following resources:

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