insurance industry best practices in content & process ......insurance industry best practices...
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© 2006 IBM Corporation
®
Insurance Industry Best Practices in Content & Process Management
Technology and Innovation for Insurance ConferenceMarch 2007
Ronen LamdanMarketing Director, Asia/PacificIBM Enterprise Content Management
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Agenda
� Current Events in Enterprise Risk for Insurance
� Enterprise Risk Management (ERM)
� Addressing Compliance
– Stop Gap Measures
– Turning Compliance into Strategic Advantage
� Technology Enabled Enterprise Risk Management
– Leveraging the power of Enterprise Content Management
� What Industry Leaders are Doing
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Insurers - Risk Management Experts- or are they?
“Standard & Poors Says Japan’s Insurers
Fall Short on Strategic Risk Management”
“While we are pleased to see a closer relationship between risk
and capital emerging, risk management should not be viewed only
in the context of efficient use of capital.” FSA (UK) Insurance Sector Briefing
“eWeekly Taiwan, Life Insurance Association has also added that fines will be imposed on top of the DOI's penalty. In fact, the DOI is reported to have issued rectification notices to China Life and Fubon Life in the past half year, either for advertisements exaggerating profit rate returns…”
“China: More than 100 Insurers
Punished for irregularities and levied
8.91 million yuan in fines against 14
executives at 128 companies during a
nationwide (CIRC) inspection campaign
2006. Under the crackdown, which
lasted from April to November..”Asia Insurance Review
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
No Insurer is Immune
� North America
– Prudential
– AIG
– St. Paul Travelers
� Europe
– Zurich
– AXA
– Allianz
� Asia
– China Life
– Mitsui Sumitomo
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Continued Increase in Regulations
�Over 10,000 regulations worldwide
� 4,266 new regulations in the pipeline
�Over $1.1 trillion spent to comply with US Federal requirements
“Enterprises that choose one-off solutions for each
regulatory challenge that they face will spend 10
times more on compliance projects than their
counterparts that take a proactive approach.”Gartner
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Data
Demand
OLTP and BI
(narrow scope)Application
Types
Compliance, Competitive
Intelligence (wide scope)
Source: Gartner
Unstructured
Data
Structured Data
Unstructured Information is Becoming the Dominant Information Type in Large Companies
Percent of corporate
information value
managed in traditional
databases
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Paper Documents & Files
Fax
Web Sites
Electronic Documents Print Output
Digital Assets
Forms
Other ContentRepositories
Enterprise Applications
ContentContent
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Gaps in Managing Risk
Source- E&Y Risk Survey Series, 2006
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Enterprise Risk Management - View of the Risk Landscape
Strategic
Competitive
Reputational
Business Ethics
Investor & Public Relations
Mergers & Acquisition
Resource Allocation
Sovereign / Political
ERMFinancial
TaxCapital Structure
Financial ReportingPortfolio ManagementCurrency or Treasury
Product PricingCredit
Regulatory
LegalFinancial
Market Conduct
Operational
EnvironmentalBusiness Process
Information TechnologyBusiness ContinuityHuman Resources
Fraud
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
ERM Framework Example
� Establish a simple framework e.g.
COSO model
� Identify and clearly view Risks
� Assign risk ownership as a core
management responsibility
� Manage what matters most
� Align risk with Business Strategy
� Take an Enterprise view
www.coso.org
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
� Dependence on end-users is error-prone and expensive
� Too many expensive manual processes require controls and testing
� Information is in multiple locations, untraceable, unreliable and not easily found
� High impact on operational performance and costs
� Huge overhead on discovery and litigation – personnel and legal expenses
The REAL Business Impact of Compliance
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Compliance in Insurance: Maturing from risk mitigation and penalty avoidance to managing risk as a competitive advantage
STAKEHOLDER VALUE
MATURITY CONTINUUM
TRANSFORM
IMPROVE
COMPLY
“Optimize and
Sustain”
“Leverage Compliance for
Competitive Advantage”
COST
“Penalty
Avoidance”
�
�
�
VALUE
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Essential to Enterprise Compliance … Two Key Ingredients
Records Management
� Business, Processing and Messaging Applications—helps ensure that the right controls are in place to manage risk to tolerance levels, and behave in a legally compliant manner
� Records Management—helps ensure that you collect and preserve the right evidence toprove your behavior was compliant
Internal
Internal
Controls
Controls
Business
Business
Continuity
Continuity
Inform
ation
Inform
ation
Risk
Risk
Operational
Operational
Risk
Risk
Regulations
Regulations
Business Process Business Process
Policies, Controls and
Process
Evidence and Proof
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
AchieveAchieve
ComplianceCompliance
ProveProve
ComplianceCompliance
SustainSustain
ComplianceCompliance
ImagingImaging
Management
Management
File System
Management
File System
Management
Team
Collaboration
Team
Collaboration
Web
Publishing
Web
Publishing
Document
Management
Document
Management
Electronic
Forms
Electronic
Forms
Business
Process
Management
Business
Process
Management
Business
Activity
Monitoring
Business
Activity
Monitoring
Content
Federation
Content
Federation
Content
Management
Content
Management
Policies, Controls and
Process
Evidence and Proof
Report
Management
Report
Management
Leveraging an ECM Platform to Achieve ERM
Content
Discovery
Content
Discovery
Records
Management
Records
Management
Enterprise
Content Management
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
ProcessDevelopment
FrameworkWorkflowSimulationAnalyticsForms
ProcessDevelopment
FrameworkWorkflowSimulationAnalyticsForms
ContentImaging/Capture
Document
Management
Web Content Mgt.
Content Federation
Collaboration
ContentImaging/Capture
Document
Management
Web Content Mgt.
Content Federation
Collaboration
DiscoveryIntranet Search
Managed Search
Bus. Insight
Apps
IBM OmniFind
DiscoveryIntranet Search
Managed Search
Bus. Insight
Apps
IBM OmniFind
Enterprise Content Management
�Manage unstructured information
�Optimize content centric business processes
�Deliver content centric compliance initiatives
�Archive e-mail
The Answer | Integrated Content, Process & Compliance
ComplianceRecords Mgt.
Email Mgt.
Discovery
Shared Drive Mgt.
Applications
ComplianceRecords Mgt.
Email Mgt.
Discovery
Shared Drive Mgt.
Applications
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Benefits of an ERM Framework with ECM
Enhance Workforce Effectivenessthrough collaboration, communication
and information sharing
Transform Business Processesthrough integration of content and automation of related processes
Optimize Infrastructure for
Content & Compliancethrough capture, archiving, retention,
discovery and retrieval
INNOVATIVE ORGANIZATIONS DRIVE GREATER VALUE FROM THEIR CONTENT
AND ENHANCE & IMPROVE THE CUSTOMER EXPERIENCE
� Increase Employee Productivity
� Enhance Business Processes
� Address Risk and Compliance
� Improve Operational Efficiency
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
� Aetna
� AEGON
� Allianz
� Aon
� Asteron
� AXA
� CNA
� Cigna
� Conseco
� Farmers
� Genworth
� GEICO
� Great West Life
� Groupe Covea
� ING
� ManuLife John Hancock
� Marsh McLennan
� Mass Mutual
� MetLife
� Nationwide
� New York Life
� PacificLife
� Progressive Ins
� PZU
� Scottsdale Ins
� St. Paul Travelers
� State Farm
� Sun Life
� Suncorp
� The Hartford
� The Guardian
� Travelers Life & Ann.
� Wellpoint
� Willis
� Zurich
24 of 25Top Insurance Companies
24 of 25Top Insurance Companies
InsuranceInsurance
Insurance Companies that Leverage ECM(Partial Listing)
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Objectives
Optimize operatingperformance
Improve customerresponse times
Easily integrate ECM systemwith existing systems
Objectives
Optimize operatingperformance
Improve customerresponse times
Easily integrate ECM systemwith existing systems
“We are glad to have made the right choice in selecting FileNet for our ECM solution.
The solution has helped us to streamline and automate our processes …”Teresa Chi, Executive Vice President, AXA Asia Pacific
FileNet Solution
Projected
$5 millionsavings over 5 years
Improved qualityof customer service
Millionsof transactions and thousands of users
FileNet Solution
Projected
$5 millionsavings over 5 years
Improved qualityof customer service
Millionsof transactions and thousands of users
© 2006 IBM Corporation
Information Management software | Enterprise Content Management
Summary
� Regulations and Risk continue to increase
� Compliance is important and a top priority for insurers globally
� Leading Insurers are adopting ERM Frameworks to address ERM
� ECM is a strategic technology solution for enabling ERM
� ECM provides competitive advantage
– Increase Employee Productivity
– Enhance Business Processes
– Address Risk and Compliance
– Improve Operational Efficiency