Fidelity Investments Shares Best Practices for Policy Admin Modernization
By firstname.lastname@example.org on May 24, 2011
Many of the life and annuity insurers I spoke with this week during the ACORD LOMA Insurance Systems Forum shared how they are continuing to face unprecedented pressure to deliver higher levels of customer service, reduce risk, and improve speed to market—and also continue to be constrained by their legacy policy admin systems to meet these challenges. So it was particularly compelling sit in on a presentation Tuesday by Jim Klauer, vice president, client technology for Fidelity Investments Life Insurance Company.
During the case study session, “Clearing a Path to Performance with an Adaptive Systems Approach,” Klauer shared how the insurer is well positioned to address these challenges following its implementation of a modern, adaptive policy admin system. He provided an overview of the business benefits and offered best practices surrounding Fidelity’s modernization project. Klauer noted that the company has significantly reduced its time to market for annuity products since implementing its new policy admin by more than eight months versus its legacy system. It has also improved its systems integration and reporting capabilities.
He encouraged other insurers considering or preparing to embark on a modernization project to take the time to thoroughly analyze and reengineer its business processes, like death claim processing. Fidelity’s process previously using its legacy system was very manual. Death claims were tracked outside of the recording keeping system, with its actuaries manually calculating payout amounts, in addition to manual administration of shell contract, money transfer, accounting and customer correspondence. In contrast using its new, rules-based system the company has been able to automate these steps reducing errors and the time to process claims—and ultimately provide better services to its customers (in this case the beneficiary/ies) during a very difficult time. Improved performance in serving customers is key to retention and loyalty.
Speaking of performance Oracle also issued a press release on Tuesday highlighting the extreme performance in a recently completed benchmark test of Oracle Insurance Policy Administration for Life and Annuity Version 9.3 running on Oracle Exadata Database Machine X2-2 and Sun SPARC Enterprise M9000 application servers. The benchmark performance test, conducted in partnership with a customer, is the largest known benchmark of its kind in the insurance industry, including 100 million policies and more than 2,000 concurrent users.
The findings show that the technology combination can enable insurers, even the largest Tier One carriers, to achieve the scalability, system availability and performance needed to meet increasingly rigorous requirements for better customer service and reduced risk. It enables faster batch runs, providing an extended window for system availability to service customers and conduct essential transactions, while reducing server costs and opening up new opportunities for hardware consolidation.
Helen Pitts is senior product marketing manager for Oracle Insurance's life and annuities solutions.