Success Stories
Streamlining Policy Administration System
Business Context
The customer has developed and maintained a home-grown Policy Administration System which caters to Life, Health and Annuity products. After acquisition and integration with parent company's IT system, the volume of policies handled by the Policy Administration System had gone up substantially. To avoid excess policy transactions through one application, the customer decided to distribute the volume between two systems - the customers homegrown Policy Administration systems and a third party Policy Administration system.
- Migration of policies from homegrown Policy Administration System to third party system
- Conversion from old Cobol version to new Cobol version
- Production support to both the Policy Administration system (homegrown and third party)
- Maintenance, enhancements and defect fixing of the migrated Policy Administrative System.
Combined Billing Systems
Customer
The customer is one of the leading Life Insurer offering a comprehensive portfolio of Life Insurance and Annuity products, including Universal Life, Variable Life, Term Life, Fixed and Variable Annuities and a variety of equity products.
Business Context
It was observed by the Insurer that its customers had multiple insurance policies for the various family members. This resulted in the insurer sending multiple bills to the same family for the policies. Apart from being a cumbersome and time consuming process, it was an unnecessary expense.
Solution Objectives
It was proposed to combine the policies belonging to a single family (identified by a family group). The objective was to build a Combined Billing System so that a consolidated premium notice could be prepared and sent to an identified family group on a monthly basis.
Solution Approach
Since this was an innovative system requiring extensive interfaces to other payment processing, policy administration and billing systems detailed requirements were evolved. Detailed impact analysis and design was done before the implementation.
- The new system has reduced the cost of generating and dispatching the notices
- Payments / remittance related to a family group get easily reconciled between the bill and payment
- Policy owners have the facility to make a single remittance for all policies or part of the bill, as desired
- Cost saving is passed onto the end customers in the form of discounts for prompt remittance
- The new features would provide for short remittance tolerances, excess adjustments and suspense accounting, all of which form part of the bill payment processes
- The migration of some of the policies from existing system to the third party system led to decrease in number of policies from 11 million to 9 million which resulted in efficient performance.
- Like policies have been grouped together in the same application.
- By distributing load between two systems, Policy Administration system became more stable.
- Automation of interest rate for flex products has resulted in decrease of processing time from thirty two hours to four hours
- Offshoring of maintenance and production support for Policy Administration has resulted in substantial cost savings
- Conversion from old version of Cobol to new Cobol version has resulted in increased stability and flexibility of system
- Weekly and quarterly report generation for management review provided better controls.
