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LIFE AND ANNUITY

POLICY ADMINISTRATION SYSTEMS Technology Analysis Abstract*

CEB TOWERGROUP

INSURANCE

January 2015

Sam Stuckal Research Director, Insurance

Vendor Assessment and Quantitative Insight Teams

*For full copies please contact [email protected]

© 2015 CEB. All Rights Reserved.

INSURANCE

Executive Director

Matt Dixon

Managing Director

Jaime Roca

Program Director

Peter Delano

Research Director

Sam Stuckal

QUANTITATIVE INSIGHT TEAM

Director

Jasleen Sindhu

Research Analyst

Edward MacDonald

VENDOR ASSESSMENT TEAM

Senior Director

Anne Marie Houston

Senior Analyst

Atit Amin

Specialist

Rachel Griffin

COPIES AND COPYRIGHT

As always, members are welcome to an unlimited number of

copies of the materials contained within this handout.

Furthermore, members may copy any graphic herein for their

own internal purpose. The Corporate Executive Board

Company requests only that members retain the copyright

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Support Center at +1-866-913-6450 for any help we may

provide.

The pages herein are the property of The Corporate

Executive Board Company. Beyond the membership, no

copyrighted materials of The Corporate Executive Board

may be reproduced without prior approval.

LEGAL CAVEAT

CEB TowerGroup has worked to ensure the accuracy of the

information it provides to its members. This report relies upon

data obtained from many sources, however, and CEB

TowerGroup cannot guarantee the accuracy of the information

or its analysis in all cases. Furthermore, CEB TowerGroup is not

engaged in rendering legal, accounting, or other professional

services. Its reports should not be construed as professional

advice on any particular set of facts or circumstances. Members

requiring such services are advised to consult an appropriate

professional. Neither The Corporate Executive Board Company

nor its programs are responsible for any claims or losses that

may arise from a) any errors or omissions in their reports,

whether caused by CEB TowerGroup or its sources, or b)

reliance upon any recommendation made by CEB TowerGroup.

2


EXECUTIVE SUMMARY

TECHNOLOGY ANALYSIS SCOPE and METHODOLOGY

In response to feedback from our membership, we developed this technology analysis product to identify key components of a policy

administration investment decision and effectively compare vendor technology products. Our methodology comes from the knowledge that

investment decisions center around the benefit to the individual and enterprise of a technology rather than the feature set alone.

This analysis is tailored to reflect the needs of end users, to diagnose the technology attributes particular to a firm, and to effectively identify

policy administration systems (PASs) that align with a firm’s needs. To that end, we conducted a series of interviews and surveys with

financial services executives, industry experts, and vendors regarding PASs. The results of this research formed the basis of our diagnostic

anatomy and informed the five-point rating system on which we scored individual products.

CURRENT MARKET and FUTURE INVESTMENT

Out With the Old, In With the New. Within the life and annuity technology space, modernizing PASs has become a pressing priority for

many insurers to ensure their tools and capabilities remain up-to-date. As insurance companies depend on PASs to service the entire policy

lifecycle, outdated technology can negatively affect customer satisfaction, employee productivity, and ultimately raise costs for insurers.

With 46% of policy systems installed almost a decade or more ago, it makes sense that nearly half of insurers now plan to adopt or replace

their technology systems by 2018. Our survey results also showed that the value drivers for this wave of investment focused on both base

functionality and process improvement. Given the diverse range of life and annuity products offered by insurers, using a structured model to

evaluate these core systems is essential to buying the right PASs.

Doubling Down on Operational Efficiency and Analytics. Legacy platforms hinder insurers’ ability to improve front-end service quality,

which is highly dependent on back-office operations. As carriers seek to improve both customer satisfaction and operational efficiency, the

inability to capture back-office synergies is a top challenge among insurance executives. This is evidenced by the 56% of firms that reported

a lack of confidence in their ability to integrate data across the enterprise. However, upgrading a PAS can effectively boost insurers’

confidence in their ability to integrate data, as this is a key capability of new systems. In turn, data-intensive operational tools, such as

predictive analytics, are growing in value and rapidly evolving to meet the needs of PASs.

Show, Don’t Tell, With Illustration Access. Illustration technology is an increasingly dynamic component within a PASs, showing how

policies can build investment value and financial security. While older solutions contain key functions like illustrations and underwriting

internally, current practice is to work with a third-party solution that an insurer prefers. Illustration and underwriting integration ensures

policies are issued with the same features sold and the same risks accepted regardless of whether the illustration and underwriting data

comes from desktops, laptops, tablets, or smartphones.

3


EXECUTIVE SUMMARY

VENDOR LANDSCAPE AND RANKINGS

Life and annuity policy administration systems provide transaction processing, recordkeeping, and valuation for the policy lifecycle

including policy issuance, in-force transactions, claims and withdrawals, and policy termination. Furthermore, the profiled solutions support

a range of complexity and interface with investment management systems for variable, indexed, and interest-sensitive products.

This technology analysis profiles and quantitatively evaluates policy administration systems from Accenture, Andesa Services, EXL,

Infosys McCamish Systems, MajescoMastek, Management Data, Oracle, Sapiens, StoneRiver, SunGard, and Vitech Systems Group. This

selection focuses on recommendations from our customer base for products that are agile, well-priced, and move away from traditional,

old-line solutions.

By combining our qualitative and quantitative data from interviews with industry experts, financial institutions, and vendors, we identified

22 attributes that define a “best-in-class” system. These attributes are grouped into four categories that highlight a firm’s user and

enterprise needs. Vendor rankings are based on our five-point rating scores on each of the 22 “best-in-class” attributes. The top vendors

were designated as “best-in-class” performers based on their composite scores in each of the technology categories below.

BEST-IN-CLASS TECHNOLOGY CATEGORIES

Insurance executives investing in policy administration systems should use the Diagnostic Anatomy to select the vendor that best aligns

with their firm’s needs and business objectives.

POLICY LIFECYCLE includes those attributes that that manage the lifecycle of customer policies from data input to ongoing processing.

Leaders include Oracle Insurance Policy Administration and two other products.

OPERATIONAL SUPPORT includes those attributes that support adjacent functions including underwriting, product management, and

distribution. Leaders include three products.

USER EXPERIENCE includes those attributes that evaluate the system’s usability and its alignment to an insurer’s workflow and

reporting needs. Leaders include three products.

ENTERPRISE SUPPORT includes those attributes that influence the enterprise’s tactical fit, segment focus, and strategic alignment with

the vendor. Leaders include Oracle Insurance Policy Administration and two other products.

4


DEVELOPING A TECHNOLOGY ANALYSIS

Technology Analysis Presentation Roadmap

Mission Statement: Our

technology analysis

process provides a

customer-driven,

transparent, and unbiased

review designed to drive

informed business

decisions.

Current Market: Provides a

view of industry and customer

changes, and best practices

for technology investment and

implementation.

Future Investment: Identifies

emerging technologies and

innovations.

Vendor Landscape: Provides

an overview of key vendors,

product features, and market

position.

Product Rankings: Highlights

“Best-in-Class” attributes and

shows a comparative

perspective of leading

products.

Current Market

Future Investment

Vendor Landscape

Product Ranking

Market Drivers:

Assess changes in the

industry and customer

behavior

Spending Forecast:

Benchmark global and

regional policy

administration

technology spending

List of Players:

Identify key

technology firms and

their products

“Best-in-Class”

Products:

See the top products

based on our anatomy

categories

Emerging

Technology

Landscape:

Pinpoint emerging

technologies and

innovations

Diagnostic Anatomy:

Choose your

investment priorities

with our proprietary

framework

Ranking

Methodology:

Review the key

components of an

investment decision

Feature Audit:

Compare the relative

feature offerings by

vendors

Vendor Profiles:

Understand the key

differentiators between

products

5


Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings

ROADMAP FOR THE PRESENTATION

6


MULTICHANNEL SERVICE HINGES ON INTEGRATION

To keep up with customer

demands, organizations are

adding channels and

providing more options

within existing ones.

Across the insurance

lifecycle, customers will

move across various

channels to suit their needs.

Personal channels such as

the agent or contact center,

are preferred for complex

activities, while digital

channels are preferred for

simple insurance

interactions.

Leading insurers make

multichannel service a reality

by designing policy

administration systems

capable of handling policy

creation, transitions, and

communications across any

preferred channel.

Channel Preference Across the Policy Lifecycle

Percentage of North American Insurance Customers by Channel Preference for Specific Activity, 2013

Source: CEB 2013 Customer Experience Survey.

n = 527.

23%

35%

23% 27%

37%

20% 38%

16%

22% 30%

25%

46%

9% 3% 3% 2%

2% 3% 2%

2%

Learn About aProduct or Service

Purchase Use or Access Receive CustomerSupport

In-person Online Phone Mobile Mail

Policy

Inquiry and

Problem

Resolution

Policy Issue

and

Onboarding

Policy

Transactions

7


CAPABILITY GAPS LIMIT CUSTOMER RESPONSES

Effective provision of

multichannel service

requires addressing factors

that contribute toward

inefficiencies and manual

work for operations.

A majority of executives

report legacy systems and

business environment

collectively drive the creation

of manual work in operations

processes.

In addition, 88% of

executives report concern

about the effect of manual

work on their ability to drive

efficiency.

Drivers of Manual Work in Operations Processes

Percentage of Operations Executives, 2012

Source: CEB 2012 FS Operations Leadership Council Automation Survey.

n = 58.

Negative Consequences of the Level of Manual Work

Percentage of Operations Executives, 2012

62% 59%

38%

15%

Legacy SystemsEnvironment

Business Environment Regulatory Environment Customer Demands

Source: CEB 2012 FS Operations Leadership Council Automation Survey.

n = 61.

Ability to

Drive

Efficiency

88%

Ability to

Respond to

Change

69%

Ability to

Meet Customer

Demand

62%

Ability to

Manage Risk

57%

Ability to

Keep Up With

Competitors

53%

8

Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings


© 2015 CEB. All Rights Reserved. 9


FORECASTING GLOBAL TECHNOLOGY SPEND

In response to the

ineffectiveness of outdated

core systems, insurers are

planning to upgrade their

PAS.

Global Policy Administration Systems Technology Spend

In Millions USD, 2014(E)-2019(P)

Source: CEB Analysis

$3,414

$3,532

$3,672

$3,846

$4,092

$4,436

$3,000

$3,200

$3,400

$3,600

$3,800

$4,000

$4,200

$4,400

$4,600

$4,800

$5,000

2014E 2015P 2016P 2017P 2018P 2019P

Development in the PAS

market centers on user

enhancements, operational

efficiency, and analytics.

The market is also seeing

particular growth toward

flexibility and usability tools

that enhance the experience

of end users and

configuration analysts.

10

EMERGING TECHNOLOGIES IN POLICY ADMINISTRATION


Emerging Technology Matrix

Usability and Workflow Emerging Operational Capabilities

Process Management: Configurable workflows that automate onboarding,

investment actions, and standardize data capture for regulatory compliance

(e.g., KYC, AML, etc.).

Interactive Visualizations: Capability that allows for real-time and user-driven

selection and representation of data for analysis, decisioning, and workflow

improvements.

Data Integration: Function that connects disparate recordkeeping applications,

core systems, and external data to provide a complete customer view.

Predictive Operational Analytics: Tools that analyze current and historical

client data to predict future outcomes and enable delivery of customized policy

services.

Enterprise Collaboration: Set of productivity tools that allows internal staff and

agents to collaborate on policy files in real-time .

Mobility: Technology that equips users to interact with the system at all times to

eliminate the need for co-location of knowledge workers.

Real-time Processing: Feature that integrates external data sources and policy

administration through collaborative technologies, including CRM and ECM.

Cloud and Virtualized Application Platforms: Flexible software delivery

frameworks that include various models of hosted applications, SaaS-based

deployments, and virtual platforms.

DEFINITIONS

ROI Potential: The

relative returns an

institution can

expect to receive

from an investment

in the technology

Technology State:

The technology’s

level of development

Workflow Impact:

The level of change

the technology will

have on current

operations and

processes

Minimal

Medium

High

Workflow

Impact

Data

Integration

RO

I P

ote

nti

al

Early Stage In Development

Lo

w

Hig

h

Technology State

Interactive

Visualizations

Enterprise

Collaboration

Predictive

Operational

Analytics

Process

Management

Cloud and Virtualized

Application Platforms

Mobility Real-time

Processing

Source: CEB Analysis.

11

Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings




Life and Annuity Policy Administration Systems

By Date of Initial System Release

2010 1990 2000 1980

MAPPING THE VENDOR LANDSCAPE

Sources: CEB Analysis, Technology Vendors.

Selecting Featured PAS Vendors

We identified vendors for this analysis based on

expert opinion, product maturity, size of installations, and

technological innovation.

LifePro®

ID3 Policy Administration

ALIP

FIMMAS

V3 System

iWorks Compass

Elixir North America

VPAS®

OIPA

AFAS

ALIS

13


Policy Lifecycle

User Experience

Data Input

The system supports

manual, online, and

automated input of policy

setup data including

features and investments.

Underwriting

The system supports

underwriting functions and

systems with data needed

for policy decisions.

Illustration Access

The system can access

historical policy illustration

data and premium quotes

from external tools.

Product Management

The system supports new

and updated products with

common and innovative

features.

Issue and Invest

The system supports policy

issuance with common

product guarantees and

investments.

Ongoing Processing


processing (premiums,

claims, policy changes, and

investment functions).

Data Accessibility

The system makes data

easily accessible to

functional stakeholders,

including employees, agents,

and auditors.

6 5 4 3 2 1

Dashboards

The system presents users

with role-specific dashboards

displaying key metrics and

allowing process actions.

7

Reporting

The system supports bulk or

ad-hoc reporting

capabilities for financial,

operational, or compliance

needs.

Analytics

The system collects and

analyzes policy data to

produce meaningful

operational insights to

improve processing.

Geographic Support

The system provides

support for multiple

currencies, languages, and

other geographic variations.

Deployment Support

The vendor offers on-site,

hosted, or cloud options

with support during and

after implementation.

Security Compliance

The system provides audit

trails, information controls,

compliance tools, and

roles-based access.

14 16 17 18 13

Ente

rpris

e S

upport

Opera

tional S

upport

15

Distribution

The system supports

multiple distribution

channels and data

interchange with external

producer systems.

Documents and Forms

The system can input,

manage, and produce

policy documents and

forms in hardcopy and

digital formats.

External Data

The system integrates

third-party data including

investments and financial

data supporting features

and guarantees.

9

10

8

Workflow

The system has advanced

workflow management to

model, automate, monitor,

and adjust policies.

11

User Interface

The UI is intuitive and

configurable with views of

transaction entry screens,

current, and historical data.

12

Current Effectiveness Potential Impact

5 = Superior Capability We or our vendor offer this

regularly, systematically, and at the

highest standard.

5 = Very High

Impact

Our firm considers this attribute mission

critical when performed at the highest

standard.

4 = Strong Capability We or our vendor offer this regularly

and systematically.

4 = High Impact Our firm considers this attribute highly

important when performed at the highest

standard.

3 = Adequate Capability We or our vendor offer this regularly

but in an ad hoc manner.

3 = Moderate

Impact

Our firm considers this attribute moderately


standard.

2 = Marginal Capability We or our vendor offer this irregularly

and in an ad hoc manner.

2 = Low Impact Our firm considers this attribute somewhat


standard.

1 = Weak or not at all We or our vendor do not do this at all. 1 = No Impact Our firm does not consider this attribute


standard.

Attribute Grading

HOW TO USE THIS ANATOMY

The anatomy is designed to assist insurance executives to better assess and prioritize components of their

technology investment. As you use this anatomy, please consider your firm’s business strategy and current

technology maturity.

1. Rate the impact of each attribute to your business and your firm’s effectiveness on a 1-5 scale using the

grading scale below and tally the results using the scorecard.

2. Map the results on the scorecard to identify areas that are most important, but where your firm is least

effective.

Product Pricing

The vendor offers flexible

pricing for ongoing support

and price discounts for

additional purchases.

19

Tech Innovation

The vendor has a proven

innovation track record, a

market-leading roadmap,

and resources for long-

term support.

Vendor Stability

The vendor has an

established presence,

sound financials, and can

provide long-term, secure

support.

21

20

Product Maturity

The product is mature in

the market and has a

steady or growing market

share and client base.

22

L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY

14


DIAGNOSTIC ANATOMY SCORECARD

Insurance executives

should complete this

scorecard using the Policy

Administration Diagnostic

Anatomy tool.

15

Attribute Categories Alignment Attributes Potential Impact

Importance of

Improvement

1. Data Input

2. Underwriting

Policy 3. Illustration Access

Lifecycle 4. Product Management

5. Issue and Invest

6. Ongoing Processing

7. Data Accessibility

8. Distribution

Operational 9. Documents and Forms

Support 10. External Data

11. Workflow

12. User Interface

13. Dashboards

User 14. Reporting

Experience 15. Analytics

16. Geographic Support

17. Deployment Support

18. Security Compliance

Enterprise 19. Product Pricing

Support 20. Technology Innovation

21. Vendor Stability

22. Product Maturity



should map their attribute

scores from rating their

impact and effectiveness

on the previous page on

this matrix to identify the

most important areas to

their vendor selection.

DIAGNOSTIC ANATOMY SCORECARD

Po

ten

tia

l Im

pac

t

5 = Very High

4 = High

3 = Moderate

2 = Low

1 = No Impact 1 =

Weak

2 =

Marg

inal

3 =

Adequate

4 =

Stro

ng

5 =

Superio

r

Current Effectiveness

Areas of Focus

16

Feature Definition

Line of Business Support

Life Insurance – Term Life The solution provides support for term life insurance.

Life Insurance – Universal Life The solution provides support for universal life insurance.

Life Insurance – Whole Life The solution provides support for whole life insurance.

Life Insurance – Variable Life The solution provides support for variable life insurance.

Life Insurance – Interest-Bearing Cash

Value Products The solution provides support for interest-bearing cash value products.

Life Insurance – Variable Cash Value

Products The solution provides support for variable cash value products.

Annuities – Deferred Fixed

Accumulation The solution provides support for deferred fixed accumulation insurance products.

Annuities – Deferred Variable

Accumulation The system provides support for deferred variable accumulation insurance products.

Annuities – Fixed Payout The solution provides support for term fixed payout insurance products.

Annuities – Variable Payout The solution provides support for term variable payout insurance products.

Life Riders – Long-Term Care,

Accidental, Death, and

Dismemberment The solution provides support for long-term care and accidental, death, and dismemberment insurance products.

Core Policy Lifecycle

Dynamic Questions for Data Input The system supports manual, online, and automated input of policy setup data, including features and investments.

Premium Quoting The system supports and automates using policy illustration data and premium quotes for prospective customers.

Issue and Invest The system supports policy issuance, investment choices (if applicable), and policy document output.

FEATURE AUDIT DEFINITIONS


Feature Definition

Core Policy Lifecycle (continued)

Ongoing Processing The system supports policy processing (e.g., premiums, claims, policy changes, and investment functions).

Data Accessibility The system makes data accessible to functional stakeholders, including employees, agents, and auditors.

Product Management The system supports new and updated products with common and innovative features and guarantees.

Underwriting The system supports underwriting functions and systems with data needed for policy decisions.

Operational Support

Distribution The system supports multiple distribution channels and data interchange with external producer systems.

Forms/Document Library The system has a library of common forms and documents, including industry standards (e.g., ACORD) and data

exchange standards (e.g., XML).

Forms/Document Generation The system has capabilities to enable generation of standard or custom documents and forms.

Customer Information Search The system allows authorized users to search for current and historical customer information, including “as-of” searches.

Historical Customer Data Storage The system stores historical customer information to allow carriers to track changes over time.

Rules Engine The system has a built-in rules engine that allows rules creation, editing, testing, and analysis.

Internal Process Management The system has built-in BPM (or links to external BPM) capabilities that allow creation, editing, testing, and analysis of

process automation.

External Process Management The system uses an external BPM solution with capabilities that allow creation, editing, testing, and analysis of policy

administration process automation.

Audit Trails The system keeps a record of the sequence of activities that have affected each policy file in the system.

Pre-Integration with Third-Party Data

Providers

The system is pre-built with interfaces to load in data from common third-party data providers, including MIB or credit

rating agencies.

FEATURE AUDIT DEFINITIONS


Feature Definitions:

• Native Feature: Contained in the base package of the solution provided solely by the firm

• Premium Feature: Only available at an additional cost or as an addition to the base package of the solution, and is provided solely by the firm.

• Partner Feature: Only available at an additional cost or as an addition to the base package of the solution, and is provided by a third-party firm.

18

FEATURE AUDIT

Feature Audit for Oracle – Oracle Insurance Policy Administration

Line of Business Support Core Policy Lifecycle Operational Support

Life Insurance – Term Life Dynamic Questions for

Data Input Distribution

Life Insurance – Universal Life Premium Quoting Forms/Document Library

Life Insurance – Whole Life Issue and Invest Forms/Document Generation

Life Insurance – Variable Life Ongoing Processing Customer Information Search

Life Insurance – Interest-Bearing

Cash Value Products Data Accessibility Historical Customer

Data Storage

Life Insurance – Variable

Cash Value Products Product Management Rules Engine

Annuities – Deferred Fixed

Accumulation Underwriting Internal Process Management

Annuities – Deferred

Variable Accumulation External Process Management

Annuities – Fixed Payout Audit Trails

Annuities – Variable Payout Pre-Integration with Third-Party

Data Providers

Life Riders – LTC, Accidental,

Death, and Dismemberment


Offered Native

Not Currently Offered and No Plans

To Be Offered in Next 12 Months

Offered Premium

Offered Partner

To Be Offered in Next 24 Months

19


ORACLE INSURANCE POLICY ADMINISTRATION ORACLE

Key Statistics

Company Type: Public

Year Founded: 1977

Headquarters: San Francisco, CA

Number of FTEs: 115,000+

Company Overview

Oracle is a global supplier of software, hardware, engineered systems, and related consulting and support

services for more than 380,000 customers in 145 countries. Within the Financial Services Global Business

Unit, the company’s insurance suite, Oracle Insurance, serves over 1,000 insurance companies worldwide

through its integrated set of applications, all of which are rules-based, adaptive, open, and secure.

Product Overview

Acquired in 2008 from Adminserver, the rebranded Oracle Insurance Policy Administration (OIPA) is a fully

configurable modularized solution for group, individual, and new business needs, serving Tier 1 and 2 life and

annuity and pension carriers. Recent upgrades have been made to OIPA including a new release of the Oracle

Insurance Calculation Engine, entry into multiple lines of business through the release of Group Insurance and

Worksite products, and further integration of OIPA into the Oracle Insurance ecosystem through Oracle BPM

and Oracle Documaker. While OIPA is currently a predominant on-premise solution, roadmap initiatives are

underway to make it a cloud-enabled product for all customers by its next upgrade.

Product Highlights

Rules Palette: OIPA does not require any programmatic changes as all the rules and logic are built using

the Pallete, a GUI configuration tool that uses drag-and-drop functionality, allowing the user to define and

customize rules. The same logic can be applied to underwriting, product management, audit trail, and other

components of OIPA. This means that coding is required to implement various regulations and their local

specificities, so that carriers can maintain the platform independently or through a partner of their choice.

Oracle Documaker: Native integration with Oracle Documaker enhances the ability to deliver out-of-the-

box reporting. By automating the document lifecycle, Documaker creates, manages, and delivers adaptive

communications. With its fully configurable integration and migration tools, Documaker also eases

conversions from legacy systems to address the design, production, and multi-channel delivery of a broad

spectrum of documents.

Oracle Business Intelligence: That OIPA comes fully integrated with any BI solution provides the user

with analytical tools to further generate on-demand reports. In particular, Oracle Business Intelligence is a

standards-based platform that enables building enterprise-wide BI solutions. It features a unified and highly

scalable architecture that provides intelligence and analytics from data spanning sources and applications.

CEB TowerGroup View

Oracle’s talent for enterprise application development and support is strongly evident in the transformation of

the Oracle Insurance Policy Administration solution. Most evident is the expansion of features, particularly

across the policy lifecycle category that displays Oracle’s ability to listen to the insurance market and respond

effectively. Initiatives are already underway in the Current Release +1 product roadmap to strengthen areas

like dashboards and analytics that were identified as gaps.

Sources: Oracle, CEB Analysis.

20

<$100

Million

$100-999

Million

$1-9.99

Billion

>$10

Billion

N/A N/A N/A N/A

Distribution of Clients by

Net Premiums Written

Distribution of Clients by Region

0-4% 20-39% 60-79%

5-19% 40-59% 80-100%

Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings




“Best-in-Class”

Policy Lifecycle

“Best-in-Class”

Enterprise

Support

“Best-in-Class”

User Experience

“Best-in-Class”

Operational

Support

AT

TR

IBU

TE

S

Mis

sio

n C

riti

cal

Data Input

Data Accessibility

Illustration Access

Product

Management

Distribution Product Pricing

Vendor Stability

Str

on

g P

rio

rity

Underwriting

Ongoing

Processing

Document and

Forms

External Data

Geographic

Support

Reporting

Deployment

Support

Technology

Innovation

Dif

fere

nti

ato

r

Issue and Invest Workflow

Analytics

Dashboards

User Interface

Product Maturity

Security

Compliance

CREATING OUR “BEST-IN-CLASS” PRODUCT RANKINGS

Policy Lifecycle

Those attributes that

manage the lifecycle of

customer policies from

data input to ongoing

processing.

Operational Support


support adjacent

functions including

underwriting, product

management, and

distribution.

User Experience


evaluate the system’s

usability and its

alignment to an

insurer’s workflow and

reporting needs.

Enterprise

Support


influence the

enterprise’s tactical fit,

segment focus, and

strategic alignment

with the vendor.

CA

TE

GO

RIE

S

Phase 1

Utilizing qualitative and

quantitative data, we identified 22

attributes that define a “Best-in-

Class” Policy Administration

System, which are grouped into

four categories.

Phase 2

Recognizing that all attributes are

not equally important, we divide

them into tiers to reflect their level

of importance as mission critical,

strong priority, or differentiators.

Phase 3

Certain products are recognized

as “Best-in-Class” after scoring

each product based on its

performance at an attribute level.


22


PRODUCT RANKING MATRIX


should use the ranking

matrix in combination with

the PAS Diagnostic

Anatomy to select the

provider that best aligns

with their firm’s needs.

Vendor rankings are based on

our five-point rating system for

each of the 22 attributes in our

Policy Administration Systems

Diagnostic Anatomy.

Listed Alphabetically by Vendor, 1.0-5.0 Scale

Vendor Product Policy

Lifecycle

Operational

Support

User

Experience

Enterprise

Support

Oracle

Oracle

Insurance

Policy Administration 5.00 4.00 3.60 4.33

Vendor A Product A 4.57 3.75 3.20 3.83

Vendor B Product B 4.50 4.25 3.80 4.17

Vendor C Product C 4.43 3.75 2.80 3.50

Vendor D Product D 4.86 4.00 4.00 4.17

Vendor E Product E 4.86 4.75 4.40 4.17

Vendor F Product F 4.71 3.75 4.60 4.17

Vendor G Product G 4.57 3.75 3.80 4.33

Vendor H Product H 4.17 4.00 4.40 4.00

Vendor I Product I 3.67 3.00 2.60 3.00

Vendor J Product J 4.29 4.25 4.20 4.33


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CEB Technology Assessment research is a qualitative evaluation of a set of vendors in a specific market; it is NOT a stack ranking.

CEB does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to

select only those vendors with the highest ratings. CEB and CEB TowerGroup research publications consist of the opinions of its

research analysts and should not be construed as statements of fact. CEB Disclaims all warranties of commercial viability or fitness

for a particular purpose.

= Best-in-Class in Anatomy Category


Oracle received “Best-in-

Class” achievements in the

Policy Lifecycle and

Enterprise Support

categories.

Policy Lifecycle includes those

attributes that that manage the

lifecycle of customer policies

from data input to ongoing

processing.

Enterprise Support includes

those attributes that influence

the enterprise’s tactical fit,

segment focus, and strategic

alignment with the vendor.

“BEST-IN-CLASS” ACHIEVEMENTS FOR ORACLE

Category Scoring Analysis

Policy Lifecycle

As an off-the-shelf, fully configurable PAS, OIPA provides full recordkeeping and

support for all policy lifecycle transactions, including policy issue, billing,

collections, policy processing, and claims. In particular, Oracle Insurance Data

Capture, which can be embedded within OIPA or utilized as a portal in the client’s

environment of choice, is a customizable tool that provides reflective questioning

for data input.

OIPA integrates into the current workflow solution of the client. All the rules and

logic for the PAS are built using drag-and-drop functionality in the Rules Palette. If

the client does not have an existing workflow tool in place, OIPA is offered with

Oracle Business Process Management to provide the workflow aspect of

underwriting and case management.

Enterprise

Support

On top of being an industry leader in terms of features and technology, OIPA

possesses a significant market share and a growing client base scattered across

multiple regions, backed by a company whose long-term prospects are financially

sound.

With insurance regulations, such as KYC, AML, and Suitability Standards, having

a material effect on operations, the ability for a PAS to provides audit trails,

information controls, compliance tools, and roles-based access is critically

important. OIPA meets this demand perfectly as security access is both role-

based and defined by configuration, and can be as secure or open as desired.

Security behavior can also be configured to restrict access and processing

capabilities of a security group.


24


Policy Lifecycle

User Experience

Data Input

The system supports

manual, online, and

automated input of policy

setup data including

features and investments.

Underwriting

The system supports

underwriting functions and

systems with data needed

for policy decisions.

Illustration Access

The system can access

historical policy illustration

data and premium quotes

from external tools.

Product Management

The system supports new

and updated products with

common and innovative

features.

Issue and Invest


issuance with common

product guarantees and

investments.

Ongoing Processing


processing (premiums,

claims, policy changes, and

investment functions).

Data Accessibility

The system makes data

easily accessible to

functional stakeholders,

including employees, agents,

and auditors.

6 5 4 3 2 1

Dashboards

The system presents users

with role-specific dashboards

displaying key metrics and

allowing process actions.

7

Reporting

The system supports bulk or

ad-hoc reporting capabilities

for financial, operational, or

compliance needs.

Analytics

The system collects and

analyzes policy data to

produce meaningful

operational insights to

improve processing.

Geographic Support

The system provides

support for multiple

currencies, languages, and

other geographic variations.

Deployment Support

The vendor offers on-site,

hosted, or cloud options

with support during and

after implementation.

Security Compliance

The system provides audit

trails, information controls,

compliance tools, and

roles-based access.

14 16 17 18 13

Ente

rpris

e S

upport

Opera

tional S

upport

15

Distribution

The system supports

multiple distribution

channels and data

interchange with external

producer systems.

Documents and Forms

The system can input,

manage, and produce

policy documents and

forms in hardcopy and

digital formats.

External Data

The system integrates

third-party data including

investments and financial

data supporting features

and guarantees.

9

10

8

Workflow

The system has advanced

workflow management to

model, automate, monitor,

and adjust policies.

11

User Interface

The UI is intuitive and

configurable with views of

transaction entry screens,

current, and historical data.

12

Product Pricing

The vendor offers flexible

pricing for ongoing support

and price discounts for

additional purchases.

19

Tech Innovation

The vendor has a proven

innovation track record, a

market-leading roadmap,

and resources for long-

term support

Vendor Stability

The vendor has an

established presence,

sound financials, and can

provide long-term, secure

support.

21

20

Product Maturity

The product is mature in

the market and has a

steady or growing market

share and client base.

22

L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY

Scoring Methodology

To arrive at a vendor ranking, we developed a proprietary scoring metric outlined by the

attributes within this anatomy that highlights the major elements of an enterprise investment

decision. This metric assumes that every element is not equally important, and therefore

assigns a higher level of importance to those attributes critical to a policy administration

system. The remaining attributes are then divided further into three tiers to reflect their level

of importance, highlighted below.

Tier 1 Attributes

“Mission Critical”

Tier 2 Attributes

“Strong Priority” Tier 3 Attributes

“Product Differentiators”

Data Input

Illustration Access

Product Management

Data Accessibility

Distribution

Product Pricing

Vendor Stability

Underwriting

Ongoing Processing

Documents and Forms

External Data

Reporting

Geographic Support

Deployment Support

Technology Innovation

Issue and Invest

Workflow

User Interface

Dashboards

Analytics

Security Compliance

Product Maturity

25


UNDERSTANDING OUR SCORING METHODOLOGY

Policy Administration Systems Technology Analysis Internal Scoring Guide

Illustrative We developed a unique

scoring methodology that

highlights the key priorities

for an executive’s

investment decision.

Every vendor product featured

in this report is scored against

each of the 22 attributes

outlined in the diagnostic

anatomy on a standardized 1-5

scale.

We calculate the weighted

average of a product’s attribute

scores in each of the four

categories of the anatomy to

arrive at an overall category

score.

An

ato

my

Category Policy Lifecycle Operational Support

Attribute

Title Data Accessibility Workflow

Attribute

Definition

The system makes data easily accessible

to functional stakeholders, including

employees, agents, and auditors.

The system has advanced workflow

management to model, automate,

monitor, and adjust policies.

Sco

rin

g M

etr

ic

5 The solution allows users to search and access

policy information, and report on the search

results.

The technology has workflow tools that vary for

individual users based on their roles and

permissions and is aligned to any external BPM

solutions.

4 The solution stores and presents historical policy

data to authorized users, but it does not require

programmatic changes.

The technology has workflow tools that vary for

individual users based on their roles and

permissions.

3 The solution stores and presents historical policy

data to authorized users, but it requires

programmatic changes.

The technology has tools that allow carriers to

balance workloads and assign tasks to

appropriate users.

2 The solution makes data easily accessible to

functional stakeholders, including employees,

agents, and auditors.

The technology has advanced workflow

management to model, automate, monitor, and

adjust policies.

1 The solution does not make data easily accessible

to functional stakeholders, including employees,

agents, and auditors.

The technology does not have advanced workflow

management to model, automate, monitor, and

adjust policies.

Attribute Score: 5.0 3.0

SCORE


26