North American New Business and Underwriting Systems 2016: Life, Health, and Annuity ABCD Vendor View

by Karen Monks,  Colleen Risk, May 6, 2016
Vendor Reviews
North America

Abstract

A review and ranking of the new business and underwriting vendor systems actively being used by life insurers in North America is presented in this report. Celent’s ABCD Vendor View is used to evaluate and rank vendors in four dimensions: Advanced technology, Breadth of Functionality, Customer base, and Depth of client services. An XCelent winner is chosen for each of the dimensions.  

In the new report, North American LHA New Business and Underwriting Systems: 2016 ABCD Vendor View, Celent profiles 14 providers of new business and underwriting systems. Each vendor responded to a request for information.  Seven vendors met the criteria for inclusion as a potential XCelent winner. The seven vendors eligible for the awards provided a demonstration and briefing of their billing solution.

Due to economic conditions that continue to have an adverse impact on life insurance application volumes, insurers have strong interest in reducing the cost of acquisition, processing and issuing life insurance applications. Automating the new business and underwriting functions is a critical component in reaching a level of straight-through processing (STP) for new business. Insurers hope that these systems will help reduce unit costs and improve margins. Celent believes that these initiatives are necessary to help the insurers address growth, service, and distribution mandates, in addition to reducing the cost per policy issued.

Developed almost 30 years ago, automated underwriting systems have become highly flexible in allowing insurers to define and configure underwriting rules and workflow. Most systems include or integrate into eApplications.  Data from the applications drive reflexive questioning and identify risk classes associated with application data. They offer high levels of automation when gathering third party medical requirements and flag risks when the third party data results are outside the ranges set by the rules. They also can deliver decisions to the point of data entry or to an underwriter. 

“The interest in automated new business and underwriting systems is on the upswing,” says Colleen Risk, a senior analyst with Celent’s Insurance practice and coauthor of the report. “The modern new business and underwriting systems offer configurable rules, evaluation of third party data, and sophisticated case tracking.  Insurers looking for opportunities to reduce costs should consider the savings that can be obtained from automating the new business process.”

"The systems profiled in this report are capable of helping insurers automatically underwrite lower face value, lower age, non-medical products and middle market targeting products," says Karen Monks, an analyst with Celent's insurance practice and coauthor of the report, "But the age old concern about automating underwriting decisions lingers."

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 operating unit 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

2

Report Methodology

4

New Business and Automated Underwriting Systems

6

Vendor Preview

9

Trends in New Business and Underwriting Systems

11

Celent’s ABCD Vendor View

12

Vendor Profiles

15

Accenture: ALIP New Business and Underwriting

17

C2L BIZ Solutions Pvt. Ltd.: SymbioSys New Business and SymbioSys Underwriting

25

Computer Sciences Corporation: nbAccelerator

29

Ebix, Inc.: The Policy Processor (TPP)

37

Flexible Architecture and Simplified Technology, Inc.: FAST New Business and Underwriting

44

Intellect SEEC: Electronic Application Business App and Product Configurator Business App

50

Majesco Ltd: Majesco New Business and Underwriting

56

Munich Re Automation Solutions Ltd: ALLFINANZ New Business & Automated Underwriting

62

Resonant Software, Inc.: Integrated Life Underwriting Solution (ILUS)

69

Reinsurance Group of America (RGA): AURA (Automated Underwriting and Risk Analysis)

76

StoneRiver, Inc.: LifeSuite

80

Swiss Reinsurance Company Ltd; Magnum Pure

87

TCP LifeSystems: SS/G

93

Tata Consultancy Services: TCS BaNCS

97

Vendor Comparison

102

Leveraging Celent’s Expertise

105

 

Support for Financial Institutions

105

 

Support for Vendors

105

Related Celent Research

106

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