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Oracle Insurance Overview

Srini Venkat

VP, Insurance Solutions


Presentation Topics

Insurance Industry Trends

Core Systems Transformation

Customer Case Studies

Oracle Insurance Momentum

Q & A


INTEREST RATESECONOMIC RECOVERY

MARKET VOLATILITY

REGULATORY DEMANDS

AFFORDABLE CARE ACT

HEALTH REFORMPRIVACY MOBILE

CLOUD

BIG DATA

BIG DATA

NEXT GENERATION

INSURANCE 3.0

HTML 5

INTEGRATED SYSTEMS

OFF SHORENEAR SHORE

LEGACY MODERNIZATION

SOLVENCY IISOVEREIGNTY

PRODUCT INNOVATION

MEDICAL COSTS


Insurance Industry Status on Core Transformation – Celent Analyst Study, 2013

Agility is the

Biggest Pain

Point

Modern

Solutions are

Compelling

Reducing

Business & IT

costs Matter

Source: Celent


Inflexible and Static IT Services

Inflexible Applications

Why Transform?: Bridge the Gap Between Dynamic Business Needs and IT Applications & Infrastructure

Increasingly Demanding Users

Fragmented IT and Business Environment


‘One-Size-Fits-All’ Transformation Approach

Business Objectives

– Growth: Organic, M&A, International

– Cost Reductions: Admin Costs, IT Simplification, Claims

– Competitive: New Products, New Markets, New Lines

Internal Factors

– Business & IT Capabilities

– People & Process

Line of Business Focus

– P&C – Personal, Commercial, Specialty, Life & Health – Retail, Group, Composite

– Tier – Large, Mid size, Small

Business Objectives, Internal Factors & LOB Demand Unique Approaches

Combination of

these factors

impact the

success of a

Transformation

Project


Core Transformation Options & StrategiesDifferent Approaches by Industry Segment


General Insurance Life & Health Insurance

Full core systems

replacements

Component strategy led by

Claims and Rating

Systems, followed by Billing

and Policy Admin

Extraction, consolidation and

simplification of business

rules

Focus on direct business –

new systems support

Core system replacement

focused on growth

Component strategy led by

New Business and Claims

Closed block options:

BPO

Data conversion


How should you approach transformation?

1. Focus on Business Rules

2. Consolidate Rating

3. Full Core Replacement

4. Modernize Distribution

Top Current Approaches


End goal of an core

transformation project --

Extracting, Consolidating, &

Simplifying Business Rules

‘Business Rules’ is a generic

term that represent many

different types of rules

Using the right tools is critical

for success of the

transformation

Few factors to consider: Rule

type, Frequency of change,

who needs to maintain

Business Rules

Rating & UW

• Product Eligibility

• Risk Evaluation

• Pricing

• Forms Determination

Policy Issue

• Submission & Clearance

• Issuance

• Coding

Policy Admin

• Endorsements & Out of Sequence Changes

• Renewals

Policy & Claims Processing

• Billing

• Commissions

• Reinsurance

• Claims

#1: Focus on Business Rules Consolidation


#2: Consolidate Rating

Represents significant portion of product rules in any core transformation project

Mature product set with fast implementation cycle

Drives immediate business impact in terms of pricing consistency, competitive pricing advantage, and distribution loyalty


Speed to market often the

key driver for life insurers

Customer service

challenges

Lack of self-service

options

Need to introduce new

products that agents want

to sell

Desire to reduce high

costs of distribution, high

costs of maintaining

legacy IT systems

#3: Full Core Systems Transformation


High integration costs

Distributors find it difficult to do business with multiple carriers

Complex carrier relationships, implementations, and project schedules

#4: Modernize Front-Office First

Consumer Demands


14

Insurance 2.0


Oracle Customer Case Studies


Improve pace of new product

introduction

Expansion into other Latin

American Markets

Forecasted ROI within 14 months

due to new products being in

production within 8 months

Objectives & Benefits

NCB Life Policy Admin Case StudyLarge Jamaican bank with insurance operation, specializing in life,

annuity & pension products (Group & Individual)


95+% of claims received

electronically

Processing 187 million claims

lines per year with an auto

adjudication rate of 99.2%

€ 8M in IT costs & € 8M in

operational costs reduction

Benefits

VGZ Health Claims Case StudySecond largest healthcare payer in the Netherlands, with 4.2 million insured lives


Largest Commercial Property

implementation covering all 50 states with

more than ~2000 inputs, ~2500 outputs,

~300 algorithms and multiple line of

business

Ability to move from the rigid structure of

ISO rating and forms to a more flexible

proprietary rating structure

Increased accuracy and consistency in

rating and pricing

Rating Transformation

Enterprise Rating Case StudyAs 8th largest U.S. commercial insurer, CNA provides insurance protection to

more than one million businesses and professionals in the U.S. and internationally


OracleInsurance


Dedicated Global Insurance team

End-to-end Insurance Solutions

Covering All Lines of Insurance

Serving 500+ Customers Globally

About Oracle Insurance


Oracle Insurance Solution FootprintLife | Wealth | Health | General Insurance | Worksite | Composite

Oracle Social- Sales & Marketing

Opportunity Mgmt Marketing Campaigns

Oracle Social -Customer Service Service Requests Chat/Email Integration

Oracle Insurance Enterprise Rating Risk Evaluation & Pricing

for Indv. & Group Business

Oracle BPM

Agent On-boarding Document Approvals Underwriting W/F Policy & Claims W/FF

RO

NT

OF

FIC

E

Oracle Insurance Policy Administration Product/Benefit Config. Group Setup Enrollment Policy Issue

Commissions Calc. Reinsurance Calc. Policy Service

Oracle Health Insurance Claims Claims Setup Provider Setup Claims Pricing Claims Adjudication

Alt. Reimbursement Benefit Accumulation Claims Analytics

CO

RE

SY

ST

EM

S

Oracle Rev Mgmt. & Billing Billing & Billing Accounts Collections Revenue Management

Oracle Documaker Policy Documents Bills / Statements Correspondences Claims Documents

Oracle Financials

Payables Receivables General Ledger Procurement

BI & Compliance Operational BI Performance Mgmt Compliance Regulatory ReportingB

AC

K O

FF

ICE


FY14

Major product releases

for Life & Health core

systems

Dramatic growth in new

customer acquisition

Multiple customer go-

lives

Reinvigorated partner

ecosystem with

specialized certification

programs

FY13

Added multiple

New Customers

Completed full

functionality for Life

policy admin

Multiple upgrade

projects

FY11 & 12

Completed M&A

Established new

strategy and direction

for Oracle Insurance

Oracle Insurance MomentumStrong Investments in Core Products Resulting in Significant Market Momentum

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om

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INVEST IN BEST PEOPLE & PRODUCT

BUILD STRONG PARTNER ECOSYSTEM

IMPROVE EASE OF DOING BUSINESS

ENSURE 100% CUSTOMER SUCCESS

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Insurance Product InnovationInvestments in Life, Health & General Insurance Systems to Change the Game

Integrated policy lifecycle support for risk-based & investment-based instruments for both retail and group markets on the same platform

Componentized health claims processing solution that adapts to support various types of health systems around the globe

Next generation product configuration platform that integrates rates, rules, and forms into a single platform

Cloud-based on-demand application for insurance marketing and customer service

1

2

3

4


Summary

Transformation can take many paths

Won’t come all at once: progressive approach is often the best

Analysis of existing IT combined with business goals can help uncover

which road to take first

You have the opportunity to leapfrog a generation of technology and

prepare for Insurance 2.0

Oracle is committed to providing innovative solutions that advance the

capabilities of insurance companies worldwide


THANK YOU