Insurance Industry Best Practices in Content & Process ......Insurance Industry Best Practices in...

© 2006 IBM Corporation

®

Insurance Industry Best Practices in Content & Process Management

Technology and Innovation for Insurance ConferenceMarch 2007

Ronen LamdanMarketing Director, Asia/PacificIBM Enterprise Content Management


Information Management software | Enterprise Content Management

Agenda

� Current Events in Enterprise Risk for Insurance

� Enterprise Risk Management (ERM)

� Addressing Compliance

– Stop Gap Measures

– Turning Compliance into Strategic Advantage

� Technology Enabled Enterprise Risk Management

– Leveraging the power of Enterprise Content Management

� What Industry Leaders are Doing



Insurers - Risk Management Experts- or are they?

“Standard & Poors Says Japan’s Insurers

Fall Short on Strategic Risk Management”

“While we are pleased to see a closer relationship between risk

and capital emerging, risk management should not be viewed only

in the context of efficient use of capital.” FSA (UK) Insurance Sector Briefing

“eWeekly Taiwan, Life Insurance Association has also added that fines will be imposed on top of the DOI's penalty. In fact, the DOI is reported to have issued rectification notices to China Life and Fubon Life in the past half year, either for advertisements exaggerating profit rate returns…”

“China: More than 100 Insurers

Punished for irregularities and levied

8.91 million yuan in fines against 14

executives at 128 companies during a

nationwide (CIRC) inspection campaign

2006. Under the crackdown, which

lasted from April to November..”Asia Insurance Review



No Insurer is Immune

� North America

– Prudential

– AIG

– St. Paul Travelers

� Europe

– Zurich

– AXA

– Allianz

� Asia

– China Life

– Mitsui Sumitomo



Continued Increase in Regulations

�Over 10,000 regulations worldwide

� 4,266 new regulations in the pipeline

�Over $1.1 trillion spent to comply with US Federal requirements

“Enterprises that choose one-off solutions for each

regulatory challenge that they face will spend 10

times more on compliance projects than their

counterparts that take a proactive approach.”Gartner



Data

Demand

OLTP and BI

(narrow scope)Application

Types

Compliance, Competitive

Intelligence (wide scope)

Source: Gartner

Unstructured

Data

Structured Data

Unstructured Information is Becoming the Dominant Information Type in Large Companies

Percent of corporate

information value

managed in traditional

databases



Paper Documents & Files

Fax

Email

Web Sites

Electronic Documents Print Output

Digital Assets

Forms

Other ContentRepositories

Enterprise Applications

ContentContent



Gaps in Managing Risk

Source- E&Y Risk Survey Series, 2006



Enterprise Risk Management - View of the Risk Landscape

Strategic

Competitive

Reputational

Business Ethics

Investor & Public Relations

Mergers & Acquisition

Resource Allocation

Sovereign / Political

ERMFinancial

TaxCapital Structure

Financial ReportingPortfolio ManagementCurrency or Treasury

Product PricingCredit

Regulatory

LegalFinancial

Market Conduct

Operational

EnvironmentalBusiness Process

Information TechnologyBusiness ContinuityHuman Resources

Fraud



ERM Framework Example

� Establish a simple framework e.g.

COSO model

� Identify and clearly view Risks

� Assign risk ownership as a core

management responsibility

� Manage what matters most

� Align risk with Business Strategy

� Take an Enterprise view

www.coso.org



� Dependence on end-users is error-prone and expensive

� Too many expensive manual processes require controls and testing

� Information is in multiple locations, untraceable, unreliable and not easily found

� High impact on operational performance and costs

� Huge overhead on discovery and litigation – personnel and legal expenses

The REAL Business Impact of Compliance



Compliance in Insurance: Maturing from risk mitigation and penalty avoidance to managing risk as a competitive advantage

STAKEHOLDER VALUE

MATURITY CONTINUUM

TRANSFORM

IMPROVE

COMPLY

“Optimize and

Sustain”

“Leverage Compliance for

Competitive Advantage”

COST

“Penalty

Avoidance”

�

�

�

VALUE



Essential to Enterprise Compliance … Two Key Ingredients

Records Management

� Business, Processing and Messaging Applications—helps ensure that the right controls are in place to manage risk to tolerance levels, and behave in a legally compliant manner

� Records Management—helps ensure that you collect and preserve the right evidence toprove your behavior was compliant

Internal

Internal

Controls

Controls

Business

Business

Continuity

Continuity

Inform

ation

Inform

ation

Risk

Risk

Operational

Operational

Risk

Risk

Regulations

Regulations

Business Process Business Process

Policies, Controls and

Process

Evidence and Proof



AchieveAchieve

ComplianceCompliance

ProveProve


SustainSustain


ImagingImaging

Email

Management

Email

Management

File System

Management

File System

Management

Team

Collaboration

Team

Collaboration

Web

Publishing

Web

Publishing

Document

Management

Document

Management

Electronic

Forms

Electronic

Forms

Business

Process

Management

Business

Process

Management

Business

Activity

Monitoring

Business

Activity

Monitoring

Content

Federation

Content

Federation

Content

Management

Content

Management

Policies, Controls and

Process

Evidence and Proof

Report

Management

Report

Management

Leveraging an ECM Platform to Achieve ERM

Content

Discovery

Content

Discovery

Records

Management

Records

Management

Enterprise

Content Management



ProcessDevelopment

FrameworkWorkflowSimulationAnalyticsForms

ProcessDevelopment

FrameworkWorkflowSimulationAnalyticsForms

ContentImaging/Capture

Document

Management

Web Content Mgt.

Content Federation

Collaboration

ContentImaging/Capture

Document

Management

Web Content Mgt.

Content Federation

Collaboration

DiscoveryIntranet Search

Managed Search

Bus. Insight

Apps

IBM OmniFind

DiscoveryIntranet Search

Managed Search

Bus. Insight

Apps

IBM OmniFind

Enterprise Content Management

�Manage unstructured information

�Optimize content centric business processes

�Deliver content centric compliance initiatives

�Archive e-mail

The Answer | Integrated Content, Process & Compliance

ComplianceRecords Mgt.

Email Mgt.

Discovery

Shared Drive Mgt.

Applications

ComplianceRecords Mgt.

Email Mgt.

Discovery

Shared Drive Mgt.

Applications



Benefits of an ERM Framework with ECM

Enhance Workforce Effectivenessthrough collaboration, communication

and information sharing

Transform Business Processesthrough integration of content and automation of related processes

Optimize Infrastructure for

Content & Compliancethrough capture, archiving, retention,

discovery and retrieval

INNOVATIVE ORGANIZATIONS DRIVE GREATER VALUE FROM THEIR CONTENT

AND ENHANCE & IMPROVE THE CUSTOMER EXPERIENCE

� Increase Employee Productivity

� Enhance Business Processes

� Address Risk and Compliance

� Improve Operational Efficiency



� Aetna

� AEGON

� Allianz

� Aon

� Asteron

� AXA

� CNA

� Cigna

� Conseco

� Farmers

� Genworth

� GEICO

� Great West Life

� Groupe Covea

� ING

� ManuLife John Hancock

� Marsh McLennan

� Mass Mutual

� MetLife

� Nationwide

� New York Life

� PacificLife

� Progressive Ins

� PZU

� Scottsdale Ins

� St. Paul Travelers

� State Farm

� Sun Life

� Suncorp

� The Hartford

� The Guardian

� Travelers Life & Ann.

� Wellpoint

� Willis

� Zurich

24 of 25Top Insurance Companies

24 of 25Top Insurance Companies

InsuranceInsurance

Insurance Companies that Leverage ECM(Partial Listing)



Objectives

Optimize operatingperformance

Improve customerresponse times

Easily integrate ECM systemwith existing systems

Objectives

Optimize operatingperformance

Improve customerresponse times

Easily integrate ECM systemwith existing systems

“We are glad to have made the right choice in selecting FileNet for our ECM solution.

The solution has helped us to streamline and automate our processes …”Teresa Chi, Executive Vice President, AXA Asia Pacific

FileNet Solution

Projected

$5 millionsavings over 5 years

Improved qualityof customer service

Millionsof transactions and thousands of users

FileNet Solution

Projected

$5 millionsavings over 5 years

Improved qualityof customer service

Millionsof transactions and thousands of users



Summary

� Regulations and Risk continue to increase

� Compliance is important and a top priority for insurers globally

� Leading Insurers are adopting ERM Frameworks to address ERM

� ECM is a strategic technology solution for enabling ERM

� ECM provides competitive advantage

– Increase Employee Productivity

– Enhance Business Processes

– Address Risk and Compliance

– Improve Operational Efficiency


®

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Insurance Industry Best Practices in Content & Process ......Insurance Industry Best Practices in...

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