Hannover Re Underwriting Automation - MarkLogic...Designed to handle tomorrow's business today...
Transcript of Hannover Re Underwriting Automation - MarkLogic...Designed to handle tomorrow's business today...
Hannover Re Underwriting AutomationImprove Business Insights & Customer Service
Matthias Adrian
Marklogic World 2016London, June 14 2016
Hannover Re is among the top three reinsurers in the worldTransacts all lines of P&C and L&H business
CanadaToronto
USACharlotteChicagoDenverNew YorkOrlando
ColombiaBogotá
BermudaHamilton
MexicoMexico City
AustraliaSydney
MalaysiaKuala Lumpur
ChinaHong Kong
Shanghai
JapanTokyo
South KoreaSeoul
BahrainManama
SpainMadrid
IrelandDublin
United KingdomLondon
FranceParis
GermanyHannover
ItalyMilan
SwedenStockholmAmerica
Europe
Asia
Africa Australia
IndiaMumbai
BrazilRio de Janeiro
South AfricaJohannesburg
Life & Health reinsurance Property & Casualty and Life & Health reinsuranceProperty & Casualty reinsurance
TaiwanTaipei
Challenges Of A Life & Health Primary Insurance CompanyIt's all about the customer's journey
Interest Information Underwriting Policy ServiceClaims
Customer’s Journey
Create consistent and enjoyable customer experience Offer individually optimal solutions to customers Process interaction primarily driven by customer Finalise business in in one go / no media breaks
Multi / Cross Channel Sales & Service Cost & Efficiency Seamless channel transition No silos between sales and service
Automation as a key value driver Optimal cost & pricing structure
Depending on insurance product up to 90% automation rate required
Hannover Re’s Response To These ChallengesGoals / Strategic positioning
So why are these challenges a reinsurance concern?• Clients of reinsurers (= primary insurers) are looking to their reinsurer for expertise• Historically, risk sharing led to a shared understanding of underwriting decisions• Underwriting policies were agreed and reinsurer took the difficult cases
With digitisation underwriting becomes an automated process• Decision-making now based on rule engines that decide at the point-of-sale• Clients now looking for reinsurer’s digital risk assessment expertise• Client demand for complete automated solutions (e.g. underwriting, claims)
Automation competence is a major competitive factor for reinsurers
Hannover Re decided to build a next-gen automated underwriting system
Designed the digital sales / Multiple channelshr | ReFlex - A new generation of underwriting systems
hr | ReFlex – Backbone For Digital Insurance Sales ProcessesDesigned to handle tomorrow's business today
Interest Information Underwriting Policy ServiceClaims
Web / Mobile Sales Frontend
Integration Middleware(REST)
Risk Assessment
Third-PartyServices
Management Information
Visual Editor
Design Time Analysis TimeRun-Time & Operations
ProductsBenefits / CoversFactor RulesBusiness RulesApplication FormsTranslations
Dashboards & KPIsStandard ReportsAd-hoc ReportsData MiningSearchBusiness Monitoring
Feedback / Learning
hr | ReFlex – Backbone For Digital Insurance Sales ProcessesDesigned to handle tomorrow's business today
Web / Mobile Sales Frontend
Integration Middleware
Risk Assessment
Third-PartyServices
Management Information
KnowledgeEditor
Design Time Analysis TimeRun-Time & Operations
ProductsBenefits / CoversFactor RulesBusiness RulesApplication FormsTranslations
Dashboards & KPIsStandard ReportsAd-hoc ReportsData MiningSearchBusiness Monitoring
Rule base transfer
Underwritten Applications / Policies
Hannover Re Hannover ReOperated by client / External network / Internet
Operated by client / Internal network / Intranet
External DBs (VPN, https, …)
REST APIs
hr | ReFlex – Each Client Operates A Separate Run-Time…… but they all share the same Management Information hub
Management Information
Analysis Time
Dashboards & KPIsStandard ReportsAd-hoc ReportsData MiningSearchBusiness Monitoring
Underwritten Applications / Policies
Hannover ReClient A
Client B
Client C
hr | ReFlex - Management Information As A Self ServiceBusiness insights at your fingertips
Quick Setup / Zero Integration
Goal: Allow quick and intuitive client access to application data
Just configure local installation for automatic upload
No own IT resources or data integration required
Compliant with highest security data protection standards
Available as a central SaaS solution hosted in Europe
MI Ingest(Pre-processing)
hr | ReFlex (Hannover)
MI Upload(Anonymisation)
hr | ReFlex (Client)
Underwritten Applications
(JSON / XML)
Dashboard Users Web Server(Dashboard)SSL/TLS
SQL DWH
?
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…
The MI system is a data warehouse...... so let's quickly do a relational schema
risk assessmentknowledge base
determine question
manage riskassessment case
create casedocumentation
legend
<<interface>>
<<function>>
<<data storage>>
arrange tele-underwriting
Interface toHannover Re
interface tocedent
interfaceto cedent
riskdialogue
businessintel-ligence manage tele-
underwriting
interface tocall center
applicationmanagement
perform manual UW
interface tocedent
interface toHannover Re
underwritingworkbenchtransfer to
external UWreceive from external UW
teleunder-writing
HS-E-5
HS-E-6
HS-E-4 HS-E-8 HS-E-7
HS-E-1
HS-E-2HS-E-2 HS-E-2HS-E-3HS-E-3
HS-E-13HS-E-12
HS-E-9 HS-E-14HS-E-15 HS-E-17 HS-E-16 HS-E-18
HS-E-19
create businessreport
HS-E-11
HS-E-27
calculate premium
offer insurance
quotationcase dataHS-E-28
risk assessmentcase data
initiatequotation
acceptoffer
productmana-gement
HS-E-1HS-E-2
manage pro-duct definition
receive answer
assess case
interface toHannover Re
interfaceto cedent
risk assess-ment
HS-E-2 HS-E-3
maintainknowledge base
HS-E-10
provideassessment
HS-E-29
insurancerecommendation
proposeproduct
productdefinition
interfaceto cedent
HS-E-2HS-E-2 interfaceto cedent
HS-E-30
access externalknowledge source
externalknow-ledge
interface toend-customer
externalaccess
HS-E-31
monitor cases
salessupport
policyissuing
interfaceto cedent
interface toend-customer
interface toend-customer
interfaceto cedent
HS-E-2
HS-E-20
HS-E-26HS-E-21 HS-E-22 HS-E-23
HS-E-24
HS-E-25
Data storage
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
Let’s look at the data types we need to store…
The MI system is a data warehouse...... so let's quickly do a relational schema
Structured data• IDs, person records, medical records, financial records, …
Semi-structured data• Questions and answers, free text entries, dynamic records…
Textual data and documents• Doctor’s reports, lab results, financial statements, …
Binary or encoded data• Raw data records from third-party service calls, scanned images, …
Unknown data format• Clickstream and process data, log/machine data, ORIGO, ACORD, …
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
Let’s look at the data types we need to store…• Well, that’s quite interesting – but it can be done.• We just need a little bit more time than expected.
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
Let’s look at the data types we need to store…• Well, that’s quite interesting – but it can be done.• We just need a little bit more time than expected.
By the way: Are these assumptions fixed?
The MI system is a data warehouse...... so let's quickly do a relational schema
Well, kind of . But clients may want to…
… set up new insurance products with different properties … make arbitrary changes to the questions and answers … regroup risk factors such as diseases or occupations … introduce new business rules producing different results … add point of sale or channel information for sales controlling … experiment with different questions flows for a segment (A/B testing)
… do something we haven’t even thought of
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
Let’s look at the data types we need to store…• Well, that’s quite interesting – but it can be done.• We just need a little bit more time than expected.
By the way: Are these assumptions fixed?• Okay, guess we need to consider schema versioning as well…• Or maybe we can reduce the details because you don’t need them, right?
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
Let’s look at the data types we need to store…• Well, that’s quite interesting – but it can be done.• We just need a little bit more time than expected.
By the way: Are these assumptions fixed?• Okay, guess we need to consider schema versioning as well..• Or maybe we can reduce the details because you don’t need them, right?
Oh, what about support for the previous system generations?• Dozens of clients are in production using the first and second generation systems• We need seamless reporting when they migrate but schemas are very different
The MI system is a data warehouse...... so let's quickly do a relational schema
Let‘s start with the functional view and the data flows…• Okay – it’s more than we thought but it can be done
Let’s look at the data types we need to store…• Well, that’s quite interesting – but it can be done.• We just need a little bit more time than expected.
By the way: Are these assumptions fixed?• Okay, guess we need to consider schema versioning as well..• Or maybe we can reduce the details because you don’t need them, right?
Oh, what about support for the previous system generations?• Dozens of clients are in production using the first and second generation systems• We need seamless reporting when they migrate but schemas are very different
Not doable - typical business madness - make sacrifices!
The MI system is a data warehouse...
These sacrifices will compromise our value proposition
Development will still blow our budget lines
We will need much more time to market
And maybe miss the boat entirely.
There has to be a better way!
... so let's quickly do a relational schema
A New Hope…...but can it really do the job?
NoSQL: Cool promises on the horizon
FAST & AGILE
DEVELOPMENT
APPROACH
NEW WAYS TO
ACCESS DATA AND
DISPLAY IT
SCHEMALESS
NO MODELING
(WELL, KIND OF)
But which product to choose?Let’s do a PoC!
Proof-of-Concept NoSQL DatabasesEvaluation / Decision Criteria
Marklogic Server Other NoSQL Product(s)
Native ingestion of XML and JSON and other data formats (text, binary)
✓ Would do JSON very well but require tedious conversion for XML
Full-text search and linguistic capabilities for primary languages
✓ Only available in combination with external search engine ( complexity)
Security and data protection (a very strict requirement given the nature of the data)
✓(Common Criteria)
(✓)(required application logic)
Supplementary SQL-style connectivity (e.g. to connect PowerPivot or Tableau)
✓ Very limited at the time
Open and flexible programming model and administration
✓ ✓
Scalability, multi-site operations, transactions
✓ (✓)(transactions required quite a bit of
application logic)
Marklogic Optimal NoSQL Product For Our Requirements
hr | ReFlex - Management Information As A Self ServiceBusiness insights at your fingertips
MI Ingest(Pre-processing)
hr | ReFlex (Hannover)
MI Upload(Anonymisation)
hr | ReFlex (Client)
Application Files
(JSON / XML)
Dashboard Users Web Server(Dashboard)SSL/TLS
SQL DWH
hr | ReFlex - Management Information As A Self ServiceBusiness insights at your fingertips
MI Ingest(Pre-processing)
hr | ReFlex (Hannover)
MI Upload(Anonymisation)
hr | ReFlex (Client)
Application Files
(JSON / XML)
Dashboard Users Web Server(Dashboard)SSL/TLS
Applications (JSON)
Marklogic DB
hr | ReFlex - Management Information As A Self ServiceControl sales and underwriting near real-time
Dashboard & Reporting
Dashboards display most relevant KPIs at one glance
Analyse applications, decisions and sales channel data
Product / channel profitability, risk profiles, customer segmentation
Improve customer journey and underwriting based on evidence
Benchmark and consult with clients how to improve business
hr | ReFlex - Management Information As A Self ServiceUnleash the potential to optimise your business
Intuitive data analytics
Google-like full-text search (different languages)
Rich collection of configurable data charts / data widgets
Limitless dimensions (called “facets”) display mini statistics
Drill to individual applications and see all details (not just some)
Full access to original application data records
Business Benefits For Hannover Re
Leading player: Well-proven, production-hardened system
Stable partnership: Marklogic has been around for a while
Good fit with IT operations: Almost zero admin burden
Single platform for all our data needs
Strong and dependable security
Time-to-market: Continuous improvements
Mission Accomplished
Management Information a competitive advantage in Hannover Re portfolio
Outlook / What’s Next
First pilot clients have been enthusiastic• Clients from Scandinavia, Germany, Russia, US, France• Preparing to take others on around the world…
Complete client data universe
Roadmap
360° Client Data
Management
ApplicationPoS
ApplicationBack office
In-force data
Claims
Contact Information / Further Questions
Matthias Adrian - Founder and Managing Director MyTMC
Contact us: [email protected] or [email protected]
ProductMarketing
Product Management
Agile Development
Architecture & DevOps
Project / Program / Change Management
Industry Expertise / Clients Insurance / Banking / Financial Services Automotive & Engineering Media & Publishing
MyTMC / A passion for digitisation and innovation in B2B and B2B2C
Disclaimer
The information provided in this presentation does in no way whatsoever constitute legal, accounting, tax or other professional advice.
While Hannover Rück SE has endeavoured to include in this presentation information it believes to be reliable, complete and up-to-date, the company does not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such information.
Therefore, in no case whatsoever will Hannover Rück SE and its affiliated companies or directors, officers or employees be liable to anyone for any decision made or action taken in conjunction with the information in this presentation or for any related damages.
© Hannover Rück SE. All rights reserved. Hannover Re is the registered service mark of Hannover Rück SE.