Model Insurer Asia 2011: Case Studies of Effective Technology Use in Insurance

by Wenli Yuan, January 13, 2011
Case Studies
Asia-Pacific

Abstract

Eighteen Model Insurer Components are described in this inaugural edition of the report to cover Asia-Pacific.

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, Model Insurer Asia 2011: Case Studies of Effective Technology Use in Insurance, Celent recognizes 18 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 product definition, distribution, underwriting, policy administration, service, claims, and infrastructure. The report also reviews IT best practices and measurable business results used in evaluating the Model Insurer Components.

In this report, 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 management—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 2011

· Five insurers initiating a project for compulsory automobile liability insurance to improve service efficiency.

 - Tokio Marine & Nichido Fire Insurance Company

- Sompo Japan Insurance Inc

 - Mitsui Sumitomo Insurance Company:

- Aioi Nissay dowa Insurance Company

- Nipponkoa Insurance Company

· Apollo Munich Health Insurance Company Ltd.: Implementing a workflow-enabled system that supports straight-through processing of the whole health product lifecycle with integration to all back end systems.

· Aviva-COFCO Life Insurance Co., Ltd.: Implementing cloud computing technology to reduce cost and improve flexibility.

· AXA China Region Insurance Company Limited: Implementing a web-based technology solution to enhance sales services and distribution capability and speed up product rollout.

· China Pacific Insurance (Group) Co., Limited: Implementing a centralized call center system across China to support life and P&C business needs.

· China Pacific Life Insurance Co., Ltd.: Rationalizing, standardizing, and integrating systems to enable a centralized, stable, reliable, and efficient technical platform.

· ClearView Wealth Limited: Implementing a web-based technology solution to enable the direct mail distribution channel, via call centre follow-up, to underwrite and issue policies without the need for external or manual intervention.

· Generali China Life Insurance Co., Ltd.: Implementing an integrated technology platform with a single sign-on to multiple systems.

· ICICI Prudential Life Insurance Company: Introducing a web-based system to process selected classes of Health Claims.

· IndiaFirst Life Insurance Company Limited: Investing in simple, cost-efficient, scalable, and proven IT systems to reduce costs and improve time to market.

· Insurance House Group Pty Ltd.: Implementing an all-in-one solution for the online direct and intermediated markets in Australia.

· Nextia Life Insurance Co., Ltd.: Implementing a real-time web-based policy application system including automatic underwriting and payment processing.

· PICC Health Insurance Company Limited: Implementing a social medical insurance connection platform to enhance automated claim processing and improve claim risk management.

· Real Insurance: Implementing social media as a channel to build relationships with customers and to manage new sales and policy servicing.

· Reliance General Insurance Co. Ltd.: Implementing a motor insurance pre-inspection system using mobile technology linked to in-house systems, streamlining the underwriting of new business.

· Royal Sundaram Alliance Insurance Company Limited: Implementing a workflow-enabled policy administration system with externalized engines to support product configuration and business rules.

· Transport Accident Commission (TAC), Victoria, Australia: Transforming the claims management process to a new recovery model with primary goals to improve return to work rates and durations, better manage common law claims, and improve client satisfaction.

· Wesfarmers General Insurance Limited: Implementing a multiproduct, multichannel model servicing the entire policy lifecycle.

 

 

 

“Effective use of technology is more important than pursuit of technology for its own sake,” says 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 the decision each insurer should be proud of.”

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

Nominations for Model Insurer Components were accepted beginning in June 2010, and the Celent insurance team selected the 18 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.

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

3

Introduction

5

Common Best Practices and Results

8

Model Insurer Asia Components 2011

19

Claims

20

 

ICICI Prudential Life Insurance Company

21

 

PICC Health Insurance Company Limited

22

 

Transport Accident Commission (TAC), Victoria, Australia

24

Distribution Management

28

 

AXA China Region Insurance Company Limited

30

 

ClearView Wealth Limited

31

Infrastructure/Architecture

33

 

Aviva-COFCO Life Insurance Co., Ltd.

34

 

China Pacific Life Insurance Co., Ltd.

37

 

Generali China Life Insurance Co., Ltd.

40

 

IndiaFirst Life Insurance Company Limited

41

Policy Administration

46

 

Apollo Munich Health Insurance Company Ltd.

47

 

Insurance House Group Pty Ltd.

49

Product Design and Development/Rating

52

 

Royal Sundaram Alliance Insurance Company Limited

53

 

Wesfarmers General Insurance Limited

57

Service

60

 

Real Insurance

61

 

China Pacific Insurance (Group) Co., Limited

65

 

Tokio Marine & Nichido Fire Insurance Company

Sompo Japan Insurance Inc.

Mitsui Sumitomo Insurance Company

Aioi Nissay Dowa Insurance Company

Nipponkoa Insurance Company

67

Underwriting

69

Reliance General Insurance Co. Ltd.

70

Nextia Life Insurance Co., Ltd.

73

Conclusion

75

Leveraging Celent’s Expertise

76

Support for Financial Institutions

76

Support for Vendors

76

Related Celent Research

77

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