Celent Model Insurer Asia 2013: Case Studies of Effective Technology Use in Insurance

by Wenli Yuan, March 14, 2013
Case Studies
Asia-Pacific

Abstract

Seventeen Model Insurer Components are described in this third annual edition of the report covering the Asia-Pacific region.

Insurance in the Asia-Pacific region faces its own set of business challenges, and insurance technology has evolved along a distinctive path. In a new report, Celent Model Insurer Asia 2013: Case Studies of Effective Technology Use in Insurance, Celent recognizes 17 insurance technology initiatives as “Model Insurer Components.” These best practices in the use of technology span key areas of the product and policyholder lifecycle, including agent portal, analytics, business process management, claims, distribution/new business, infrastructure/architecture, policy administration, risk management, service, and underwriting. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.

Celent offers some key best practices in the use of technology across various areas of the industry—whether in components of the product and policyholder lifecycle or general areas such as IT infrastructure and architecture—that a “model insurer” would use. These areas are illustrated by case studies of specific initiatives and capabilities, selected from the many submissions and presented in this report as Model Insurer Components.

Model Insurer Asia Components 2013:

  • AEGON-CNOOC Life Insurance: Implementing a BPM system integrated with core policy admin system and image/workflow system to provide a single entry solution on workflow and data input for all policy administration activities.
  • Agriculture Insurance Company of India: Implementing a web-based, integrated, online systems solution to reach the last mile farmer at an affordable cost, and to automate the operational and administrative processes to optimize resources and minimize costs.
  • AIG Asia-Pacific: Implementing a distribution-focused policy fulfillment platform supporting the SME market segment.
  • Birla Sun Life Insurance: Introducing a process performance management framework to improve end users’ experience of service delivery.
  • HDFC Standard Life Insurance: Designing and developing a system which can be used at the point of sale to realize real time underwriting.
  • HDFC Standard Life Insurance: Implementing a portal to allow customers to buy policies online.
  • HNB Assurance: Implementing a claims management system that includes a customer relations center component and mobile component and automates the entire claim process for motor insurance.
  • IndiaFirst Life Insurance: Implementing a mobile initiative that empowers the sales force, automates the entire sales process, and further facilitates customer service.
  • MetLife Global Technology & Operations Asia: Implementing an operating system-agnostic mobile application platform that provides full-scale end-to-end sales resources to multiple distribution channels in real time.
  • Mitsui Sumitomo Insurance: Rapidly implementing a cloud-based Global Information Platform to facilitate prompt claim payment after a disaster.
  • Partners Life: Rapidly implementing a modern policy administration platform to support the launch of its new business.
  • Prudential Life Insurance Company of Korea: Introducing an iPad application to streamline distribution.
  • Royal Sundaram Alliance Insurance: Implementing a standard interface and enabling partners to access configurable web services for online policy issuance.
  • Shanghai Insurance Association: Implementing an insurance information exchange platform for auto insurance to regulate the market and improve industry’s risk management. 
  • Tata AIG General insurance: Implementing a mobile application digitizing onsite enrollment and claims information gathering for cattle insurance to reach out to the rural sector cost-effectively.
  • Yingda Taihe Property Insurance: Implementing a claim service platform to automate claim processing for all property and casualty lines of business.
  • Zurich Insurance: Implementing a business transformation solution across four regions which allowed development, sharing, reuse, and support of market components and processes around the world.

It is the first time we have selected a Model Insurer Asia of the Year. The winner is:

  • HDFC Standard Life Insurance: Designing and developing a system which can be used at the point of sale to realize real time underwriting.

“This year marks the third time Celent has applied our globally recognized Model Insurer methodology to honor technology initiatives in Asia,” says Neil Katkov, PhD, Senior Vice President, Asia for Celent. “We received a broad range of submissions, so we are confident that the winning initiatives represent state of the art in insurance technology in the region.”

“Effective use of technology is more important than pursuit of technology for its own sake,” adds Wenli Yuan, Senior Analyst with Celent's Asian Financial Services Group and author of the report. “This is the common thread among every selected Model Insurer component, and a decision each insurer should be proud of.”

Nominations for Model Insurer Components were accepted beginning in July 2012, and the Celent insurance team selected the 17 winning initiatives based on the business benefits provided. Each Model Insurer Component is described in a brief write-up within the report, including detailed descriptions of business drivers, technology environments, and quantitative success metrics.

This 60-page report contains two figures and three tables.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Introduction

3

Common Best Practices and Results

6

Model Insurer Asia Components 2013

13

Agent Portal

15

Analytics

18

Business Process Management

21

Claims

25

Distribution/New Business

30

Infrastructure/Architecture

35

Policy Administration

38

Risk Management

45

Service

47

Underwriting

50

Conclusion

54

Leveraging Celent’s Expertise

55

Related Celent Research

56

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