Wednesday May 06, 2015

Avoid the “Big Bang” Approach to Legacy System Replacement by Utilizing Business Process Management Solutions along with Oracle Insurance Policy Administration

Insurance companies have long recognized that they have a need to adapt quickly to new market opportunities, regulations, and technologies as well as customer and corporate needs. Many have to carefully navigate modifications to their existing complex infrastructures and processes with the introduction of new ones. Business Process Management (BPM) allows for the introduction of new technologies and streamlined business processes that can improve costs and visibility while at the same time protecting investments in legacy systems.

Carriers that utilize any form of Business Process Management and Orchestration can be considered as operating in an Intelligent and structured manner, bringing the advantages of:

  • Process orchestration
  • Model driven
  • Content management
  • Human interactions
  • Process management and Business Activity Monitoring (BAM)
  • Effective implementation of Service Level Agreements (SLA)
  • Connectivity
  • Knowledge repository

Using BPM solutions, business users and IT can more easily collaborate to implement and maintain a system that eliminates unnecessary manual processes and allows for end-to-end visibility of new streamlined, automated workflows. Together with the Oracle Insurance Policy Administration solution or Oracle Insurance Calculation Engine, BPM tools can be used to orchestrate new business, rating, underwriting, and claims processes while providing insight into key insurance performance measurements.

A catalogue of predefined and pre-integrated template product models and rules provided by Oracle Insurance Policy Administration can be easily integrated with predefined connectors for various third-party platforms and data services. With a good BPM suite, legacy systems can still be utilized and made part of a virtual service catalog allowing for a more manageable migration from older platforms and processes to newer ones. It reduces the need for carriers to take a “big bang” approach to legacy system replacement and gives the flexibility to migrate in phased manner and reduce the risk.

To learn more about Oracle Insurance Policy Administration and how Oracle’s solutions can be used to support and transform your business, visit oracle.com/insurance.


Don’t forget to keep up with Oracle Insurance year-round via social media.

Wednesday Mar 18, 2015

Oracle Insurance Policy Administration Named Leader in new Life and Annuity Policy Administration Systems by Two Analysts

In recent analyst reports by Gartner and CEB TowerGroup, two of the world’s leading IT research firms, Oracle Insurance Policy Administration for Life and Annuity has been named a leader among life and annuity policy administration systems.

Dave Shively, Oracle's Senior Director of Life and Annuity Policy Administration, discusses the topic in today’s post:

Obviously, this is very exciting news for us, as we have focused heavily on delivering a best-in-class policy administration system that can support both group and individual life policies and deliver any insurance product including life, annuities, group life and worksite/employee benefits, on a single platform. The latest release features expanded rules reuse capabilities that help insurers increase speed time-to-market and improve product agility for new products and plans.

We believe placement as a leader in these reports affirms that our focus aligns well with the needs of our customers as we innovate on a flexible, centralized and rules-based solution that supports end-to-end processes including policy setup and issue, enrollment, underwriting, billing, collections, policy processing and claims.

According to Gartner, Oracle Insurance Policy Administration for Life and Annuity was positioned in the Leaders Quadrant based on the combination of completeness of vision and ability to execute, the two primary criteria for the report. Oracle was ranked among the top 7 providers out of 17 competitors participated in the report.

Gartner wrote that “Vendors in the Leaders Quadrant have achieved significant market share, while demonstrating an ability to respond to customers’ needs. Leaders have robust, scalable products with a wide range of features, a large installed base, acceptable financial performance and good distribution. Leaders are doing well today and are prepared for the future.”

CEB TowerGroup, another leading IT analyst firm, published a new report that focuses on solutions for the life and annuity technology space. In this report, Oracle Insurance Policy Administration was ranked as best in class in two important categories: policy lifecycle attributes and enterprise support. The CEB TowerGroup report ranked Oracle number 1 and gave a perfect 5.0 out of 5.0 score in the policy lifecycle attribute category, outpacing 10 other competing solutions. Oracle also tied for first in the enterprise support category that helps position Oracle as a strong vendor in this space.

CEB TowerGroup found that Oracle Insurance Policy Administration provides product flexibility that is unmatched in the market. Oracle’s solution does not require any programmatic changes as all the rules and logic are built using the Rules Palette, a GUI configuration tool that uses drag-and-drop functionality, allowing the user to define and customize rules. The same configuration can be applied to underwriting, product management, audit trail, and other components of Oracle Insurance Policy Administration.

Over the years, Oracle has continued to enhance our policy administration solution and we maintain our commitment to being the leader in the market. We are convinced that the breadth and delivery of Oracle Insurance Policy Administration for Life and Annuity helps customers accelerate product development, improve operational efficiency and reduce time-to-market. We believe this is why these leading analyst firms continue to recognize and affirm our position of leadership in the life and annuity policy administration market.


Don’t forget to keep up with Oracle Insurance year-round via social media.

Thursday Feb 19, 2015

Oracle’s Dave Shively Offers His Thoughts on Core System Solution and Vendor Selection

Dave Shively, Oracle's Senior Director of Life and Annuity Policy Administration, discusses the topic of core system solution and vendor selection in today’s post:

Over the past ten years, the vendor landscape for back-office Insurance solutions has changed tremendously. The number of offerings based on modern technology has increased dramatically and the breadth of capabilities offered by these solutions has also improved significantly. As the market evolves, capabilities that were once cutting edge become default and new functionality becomes differentiating. Capabilities which once were “nice to have” are now “need to have.”   

The current vendor landscape can be broken down into the following classifications:

  • Emerging Players - newer vendors who are starting to gain a foothold in the marketplace, but do not yet have a proven track record.
  • Market Pillars - established players with very strong vendor credentials, but whose technology has not kept up with the competition.
  • Innovators - have demonstrated innovative product strengths that act as their competitive advantage in appealing to niche segments of the market but whose solutions may not yet be ready for enterprise level deployment.
  • Champions - have a strong market presence, modern competitive solution, and are the trendsetters for the industry.

When assessing the viability of a solution vendor, it is important to not only consider the strength of their product offerings, but also their strategy and reach. For their product offerings, evaluation criteria would include functionality, advanced features, affordability, usability and architecture. The other important parameter driving a product’s strength is its adaptability –providing fundamental business capabilities along with the ability to adapt to change and support growth and changing business and regulatory requirements over time.

But there are several factors that should be considered when choosing a vendor partner that go beyond the capabilities of the solution itself.  Carriers have to keep in mind that selecting a Core System ties you to the product vendor for years to come.  The average life-span of a Core System in a carrier is more than 30 years so it is important to consider not only the immediate need, for which the solution is being selected, but also the longer term needs and viability of the solution.  A few of the factors to consider include:

Financial Stability and Transparency

The long term stability of your vendor is critical to the success of your business. Vendors showing poor financial performance/statements are risky as there is a significant probability of acquisition or even insolvency. There are many examples of vendors who have created innovative solutions but could not weather market down cycles.  Vendors not willing to share audited financial information or shying away from providing an accurate picture of the past performance of their products/offerings are likely doing so for a reason. Hence, selecting vendors who can prove that they are financially stable, profitable is undoubtedly a critical criteria for selection.

Resources – Ongoing Product Investment

Significant levels of investment are required for sustained development of next generation products, maintenance of current products and customer support. Additionally, investments done in R&D that add to the performance, stability, functionality, reliability of the product demands depth of industry experience, true knowledge of the solution and a rich experience in implementing the solution. Hence, selecting a vendor who has industry experience, solution knowledge and product implementation expertise along with a proven track record of ongoing product investment is key. Additionally, as with anything you buy, there are fees and costs associated with investment products and services. Fees that seem small initially but over time grow, such as ongoing consulting fees, may have a major impact on your investment portfolio over time. All ongoing fees and charges should be well understood and vetted in order to ensure you are getting good value for each dollar paid over the life of the product.

Experience in Domain

Domain experience is critical not only to implementation success, but also to the long-term viability of the solution. Minute details of the industry are known only to those who’ve spent years in the Industry rather than having just researched it.  With regard to the implementation of the solution, you want to ensure the vendor team has the experience to quickly understand your business needs rather than your team having to educate them about basic insurance principles.  In addition, you want to make sure that the product development team understands the Insurance market so that the solution evolves with the market rather than stagnating and becoming irrelevant.  In addition, it is not only important that the vendor can put forward one or two industry experts, but rather you should look for a team of people supporting the solution who all have a solid understanding of the Insurance business.

Scalability

While most vendors profess to have a scalable solution, it is important to look for proof points around this supposition.  A vendor should be able to provide large scale implementation references, have well documented scalability testing results, and be able to succinctly articulate how their solution achieves scalability.  They should be willing to let your technical team “under the hood” so they can understand the underlying architecture and how it responds as business volume increases.

Documentation

Documentation detailing the use of product features and configuration capabilities are a basic requirement for a complete packaged solution. Guides providing installation and use instructions that are well-documented and readily available with the product are critical for the adoption of the solution by your organization.

Product Vendor versus IT Services Provider

A recent trend in the marketplace is the acquisition of industry products by services companies in order to drive services revenue.  The challenge is that services companies lack the basic product management disciplines such as providing technical support, packaging and rolling out software upgrades, supporting new releases of platform software (OS, DB, Web server), and generally having discipline around product strategy.  In addition, they are not incented to provide rich out-of-the-box functionality; rather they want to create solutions that drive services revenue by providing good core capabilities but requiring a carrier to pay for services to “customize” the solution to their needs.

Experience

Last, and perhaps most important, is the vendor’s relevant experience implementing their solution for similar carriers.  They should be able to provide both case studies and references for customers that are of a similar size and with similar product lines.  In addition, it is important to look at their list of customers that have the solution live and in production today to verify what they are telling you about their ability to successfully deliver their solution.  Just because they have sold to a lot of carriers does not mean they have a track record of success on the delivery side.

The Bottom Line

Following these criteria can result in creating long term partnerships and strategic engagements, the output of which can be the best business-product evolution in the industry. When insurers connect their business with a product and vendor well-equipped to meet today’s challenges and provide a platform for future growth, the best is sure to follow.

Tuesday Feb 10, 2015

Transform Your Enterprise through Core Systems Consolidation

The life insurance industry is facing decreasing revenues. Written premiums have been flat or even decreasing since 2012, and coupled with interest rates that have been falling, we are now at historic lows – making it harder for life carriers to grow the business. As regulations, industry, competitors, and consumer needs change, life insurance and annuity carriers must continue to adapt their product portfolios and introduce new products faster to market to gain competitive advantage and sustain growth.

Dave Shively, Oracle's Senior Director of Life and Annuity Policy Administration, discusses how insurers can approach consolidation of core systems:

Unfortunately for many carriers, their aging, legacy policy administration systems prevent or inhibit rapid changes to products or processes. Many carriers are struggling with policy administration systems that are over 30 years old. These aging systems impede carriers from capitalizing on growth opportunities or reacting to competitive pressures. These systems also require significant maintenance, thus reducing profits. However, insurers can overcome these challenges by consolidating distributed and aging policy administration systems into a modern, flexible system that can improve business agility.

There are many benefits that carriers can gain by replacing their old systems with a modern system such as Oracle Insurance Policy Administration for Life and Annuity. Our customers have achieved benefits such as faster time-to-market for new products, enhanced customer service, increased flexibility on product configuration, improved management and distribution by taking advantage of a modern system that is scalable and high-performance to support growth in the business.

In fact, one large multi-national carrier with tens of millions of active policies in several business units is currently implementing Oracle Insurance Policy Administration. They do business in more than 15 countries and wanted to standardize their solution into one modern policy administration system. The challenge facing the company was the urgent need for new modern systems to replace multiple aging policy admin platforms across the group. The carrier recognized that none of these legacy platforms met the requirements necessary to fulfill the strategy put forward, and they decided to standardize using the Oracle Insurance Policy Administration solution.

To learn more about how this company is achieving transformational results from policy modernization and is overcoming challenges by consolidating distributed policy administration systems, we invite you to watch the recent webcast hosted by LOMA and sponsored by Oracle.

Join Us for Oracle Industry Connect in Washington, DC, March 25-26, 2015

The impact of digital disruption is being felt in the financial services industry. Join us for open and provocative discussions during Oracle Industry Connect, an exclusive event taking place March 25–26, 2015 in Washington DC. The Financial Services and Insurance program brings together top business and IT executives from leading financial institutions including insurers, healthcare payers, and banks. Join your industry peers for in-depth conversations on trends, challenges and opportunities facing insurers today.

Don’t forget to keep up with Oracle Insurance year-round via social media.

Monday Dec 08, 2014

Group Billing Made Easy With Oracle Insurance Policy Administration for Life and Annuity

For many insurers, billing is no longer just a process of generating bills, but an important part of communication between the carriers and their customers. A majority of insurance carriers find themselves constrained by aging and inflexible legacy billing systems, which limit their ability to improve operational efficiency. Also, cumbersome or inaccurate billing has led to customer dissatisfaction, creating difficulty in selling additional insurance products to existing customers/accounts.

In order to address this problem, insurance carriers may be considering modern billing systems to be integrated with the policy administration systems. However, the addition of these systems creates complexities and limitations – in addition to increased investment for an external billing system – and also makes maintenance and further enhancements painful.

The Oracle Insurance Policy Administration 10.1 release introduces unified Group Billing functionality to better align the solution’s capabilities with market needs and trends.  This new functionality provides an excellent billing solution that can significantly impact an insurer’s processing expenses, improve cash flow, and increase customer satisfaction, especially in case of Group Billing where reconciliation becomes overwhelming. This solution also supports efficient and effective batch processing capabilities, eliminating the need for any external billing solution.

Group Billing in Oracle Insurance Policy Administration has been designed and developed with wide range of capabilities:

The solution uses a two-stage process in generating a bill, which allows it to capture granular details and makes Group Billing configurable.

  • Generate Bill Details

    This is a rule attached to a transaction that generates the bill details as various entity levels – usually at the Policy, Client or Coverage level.

    These bill details hold the most detailed information pertaining to any policy, client and coverage that can further be grouped together to generate Group Bills as required.

  • Generate Group Bill

    This is an attached rule configured to find mapped bill details to a Group Customer in order to generate a single Group Bill.

    The system allows the ability to define a billing group, which can be a company, government agency or other organization that handles billing for individual annuity or life insurance policies held by their employees or members. This billing group will be the recipient of the Group Bill.

    It is also possible to aggregate bill details to a Group Bill, based on bill details generated over a period of time, or based on set levels of bill due amounts. Search capabilities are available and can be performed at various levels. The Group Bill can be searched and accessed, so all bill details associated with the Group Bill can be viewed.

    The system can be setup to automatically generate a Group Bill on a given billing date and can be configured to support multiple client billing cycles (e.g. weekly, bi-weekly, semi-monthly, monthly, quarterly, semi-annual, annual or any other client defined frequency). The system is also capable of defining a configurable or system status with the Group Bill (for example Pending, Active, Released, Deleted). The status is changed as billing activities are processed for a specific Group Bill.

Group Bill Reconciliation

Once a Group Bill is generated for an entity (such as a Group Customer) and payments are received from the payer, these are adjusted against the individual Bill Detail entries and reconciled. The Billing Reconciliation enhancement introduces new screens, business rules and other functionalities needed to process the reconciliation and generate the required policy level activities to ensure the payments are adjusted to the policy.

User-friendly screens allow the billing/payment representative to easily find a bill and reconcile it manually and provide the ability to do adjustments anytime in future.

The system allows the addition or removal of a policy for a member that has already been generated, and reconciliation handles the associated adjustments needed.

The system has the ability to produce periodic discrepancy reports at the participant level, providing insight to into which employer-billed premium payments need to be resolved (e.g. may be missed deduction or underpayment) and to produce a periodic past due report, based on remittance frequency, to communicate the receivables that are not paid and past due.

Oracle Insurance Policy Administration’s Group Billing functionality can also identify and track unallocated cash (through suspense) and support retroactive enrollment, retroactive termination, and reinstatements. It also allows reallocation of payments or adjustments to individual receivables within system.

After reconciliation of the amount received, the bill can be released and the status changed. The system will automatically generate individual remittance activities for the policies included in the list bill for the amount received (reconciled amount). If there is an amount that is not reconciled, it can be applied to the appropriate level of suspense at the lowest level known, which can be at Group Customer, invoice, billing class or policy level.  The system also allows reversal of reconciliation in cases of erroneous payments (over payments, under payments or incorrect allocations).

Batch Processing using Data Intake

Oracle Insurance Policy Administration can receive an electronic format file from the employer or payroll provider for employee payroll deductions at participant (member/dependent) level – within a benefit by employer selected schedule (by pay period, weekly, monthly or any client-defined frequency) – and batch process it to generate scheduled Group Bills.

The system has the ability to support tracking, research and follow-up of unallocated payments (i.e., a batch of suspense items where all of the money was not applied as premium to contracts in the group, the unapplied suspense detail would be available). It is capable of receiving payments by means of lockbox, EFT, payroll deduct or manual check.

The system also supports search capabilities for missing or improperly applied payments in order to provide corrective processing to address improperly applied payments located in search. This includes the ability to remove payment, apply to another account or reopen suspense.

Learn more

Oracle Insurance Policy Administration provides a highly configurable and flexible platform that enables the carriers to innovate to keep pace with changing demands, simplify their IT environments and transform the business into an agile, cost-effective enterprise. The addition of Group Billing functionality offers an excellent billing solution that can significantly impact an insurer’s processing expenses, improve cash flow, and increase customer satisfaction

To learn more about Oracle Insurance Policy Administration for Life and Annuity and how Oracle’s solutions can be used to support your business, visit oracle.com/insurance.

Don’t forget to keep up with us year-round:

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Oracle’s solutions provide the modern, rules-driven flexibility insurers need to support Digital Insurance transformation, simplify their IT environments, and innovate to keep pace with changing demands.

For more information, visit oracle.com/insurance.

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