LIFE AND ANNUITY POLICY ADMINISTRATION SYSTEMS · LIFE AND ANNUITY POLICY ADMINISTRATION SYSTEMS...

LIFE AND ANNUITY

POLICY ADMINISTRATION SYSTEMS Technology Analysis Abstract*

CEB TOWERGROUP

INSURANCE

January 2015

Sam Stuckal Research Director, Insurance

Vendor Assessment and Quantitative Insight Teams

*For full copies please contact [email protected]

© 2015 CEB. All Rights Reserved.

INSURANCE

Executive Director

Matt Dixon

Managing Director

Jaime Roca

Program Director

Peter Delano

Research Director

Sam Stuckal

QUANTITATIVE INSIGHT TEAM

Director

Jasleen Sindhu

Research Analyst

Edward MacDonald

VENDOR ASSESSMENT TEAM

Senior Director

Anne Marie Houston

Senior Analyst

Atit Amin

Specialist

Rachel Griffin

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2


EXECUTIVE SUMMARY

TECHNOLOGY ANALYSIS SCOPE AND METHODOLOGY

In response to feedback from our membership, we developed this technology analysis product to identify key components of a policy

administration investment decision and effectively compare vendor technology products. Our methodology comes from the knowledge that

investment decisions center around the benefit to the individual and enterprise of a technology rather than the feature set alone.

This analysis is tailored to reflect the needs of end users, to diagnose the technology attributes particular to a firm, and to effectively identify

policy administration systems (PASs) that align with a firm’s needs. To that end, we conducted a series of interviews and surveys with

financial services executives, industry experts, and vendors regarding PASs. The results of this research formed the basis of our diagnostic

anatomy and informed the five-point rating system on which we scored individual products.

CURRENT MARKET AND FUTURE INVESTMENT

Out With the Old, In With the New. Within the life and annuity technology space, modernizing PASs has become a pressing priority for

many insurers to ensure their tools and capabilities remain up-to-date. As insurance companies depend on PASs to service the entire policy

lifecycle, outdated technology can negatively affect customer satisfaction, employee productivity, and ultimately raise costs for insurers.

With 46% of policy systems installed almost a decade or more ago, it makes sense that nearly half of insurers now plan to adopt or replace

their technology systems by 2018. Our survey results also showed that the value drivers for this wave of investment focused on both base

functionality and process improvement. Given the diverse range of life and annuity products offered by insurers, using a structured model to

evaluate these core systems is essential to buying the right PASs.

Doubling Down on Operational Efficiency and Analytics. Legacy platforms hinder insurers’ ability to improve front-end service quality,

which is highly dependent on back-office operations. As carriers seek to improve both customer satisfaction and operational efficiency, the

inability to capture back-office synergies is a top challenge among insurance executives. This is evidenced by the 56% of firms that reported

a lack of confidence in their ability to integrate data across the enterprise. However, upgrading a PAS can effectively boost insurers’

confidence in their ability to integrate data, as this is a key capability of new systems. In turn, data-intensive operational tools, such as

predictive analytics, are growing in value and rapidly evolving to meet the needs of PASs.

Show, Don’t Tell, With Illustration Access. Illustration technology is an increasingly dynamic component within a PASs, showing how

policies can build investment value and financial security. While older solutions contain key functions like illustrations and underwriting

internally, current practice is to work with a third-party solution that an insurer prefers. Illustration and underwriting integration ensures

policies are issued with the same features sold and the same risks accepted regardless of whether the illustration and underwriting data

comes from desktops, laptops, tablets, or smartphones.

3


EXECUTIVE SUMMARY

VENDOR LANDSCAPE AND RANKINGS

Life and annuity policy administration systems provide transaction processing, recordkeeping, and valuation for the policy lifecycle

including policy issuance, in-force transactions, claims and withdrawals, and policy termination. Furthermore, the profiled solutions support

a range of complexity and interface with investment management systems for variable, indexed, and interest-sensitive products.

This technology analysis profiles and quantitatively evaluates policy administration systems from Accenture, Andesa Services, EXL,

Infosys McCamish Systems, MajescoMastek, Management Data, Oracle, Sapiens, StoneRiver, SunGard, and Vitech Systems Group. This

selection focuses on recommendations from our customer base for products that are agile, well-priced, and move away from traditional,

old-line solutions.

By combining our qualitative and quantitative data from interviews with industry experts, financial institutions, and vendors, we identified

22 attributes that define a “best-in-class” system. These attributes are grouped into four categories that highlight a firm’s user and

enterprise needs. Vendor rankings are based on our five-point rating scores on each of the 22 “best-in-class” attributes. The top vendors

were designated as “best-in-class” performers based on their composite scores in each of the technology categories below.

BEST-IN-CLASS TECHNOLOGY CATEGORIES

Insurance executives investing in policy administration systems should use the Diagnostic Anatomy to select the vendor that best aligns

with their firm’s needs and business objectives.

POLICY LIFECYCLE includes those attributes that that manage the lifecycle of customer policies from data input to ongoing processing.

Leaders include Accenture ALIP and two other products.

OPERATIONAL SUPPORT includes those attributes that support adjacent functions including underwriting, product management, and

distribution. Leaders include Accenture ALIP and two other products.

USER EXPERIENCE includes those attributes that evaluate the system’s usability and its alignment to an insurer’s workflow and

reporting needs. Leaders include Accenture ALIP and two other products.

ENTERPRISE SUPPORT includes those attributes that influence the enterprise’s tactical fit, segment focus, and strategic alignment with

the vendor. Leaders include three products.

4


DEVELOPING A TECHNOLOGY ANALYSIS

Technology Analysis Presentation Roadmap

Mission Statement: Our

technology analysis

process provides a

customer-driven,

transparent, and unbiased

review designed to drive

informed business

decisions.

Current Market: Provides a

view of industry and customer

changes, and best practices

for technology investment and

implementation.

Future Investment: Identifies

emerging technologies and

innovations.

Vendor Landscape: Provides

an overview of key vendors,

product features, and market

position.

Product Rankings: Highlights

“Best-in-Class” attributes and

shows a comparative

perspective of leading

products.

Current Market

Future Investment

Vendor Landscape

Product Ranking

Market Drivers:

Assess changes in the

industry and customer

behavior

Spending Forecast:

Benchmark global and

regional policy

administration

technology spending

List of Players:

Identify key

technology firms and

their products

“Best-in-Class”

Products:

See the top products

based on our anatomy

categories

Emerging

Technology

Landscape:

Pinpoint emerging

technologies and

innovations

Diagnostic Anatomy:

Choose your

investment priorities

with our proprietary

framework

Ranking

Methodology:

Review the key

components of an

investment decision

Feature Audit:

Compare the relative

feature offerings by

vendors

Vendor Profiles:

Understand the key

differentiators between

products

5


Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings

ROADMAP FOR THE PRESENTATION

6


MULTICHANNEL SERVICE HINGES ON INTEGRATION

To keep up with customer

demands, organizations are

adding channels and

providing more options

within existing ones.

Across the insurance

lifecycle, customers will

move across various

channels to suit their needs.

Personal channels such as

the agent or contact center,

are preferred for complex

activities, while digital

channels are preferred for

simple insurance

interactions.

Leading insurers make

multichannel service a reality

by designing policy

administration systems

capable of handling policy

creation, transitions, and

communications across any

preferred channel.

Channel Preference Across the Policy Lifecycle

Percentage of North American Insurance Customers by Channel Preference for Specific Activity, 2013

Source: CEB 2013 Customer Experience Survey.

n = 527.

23%

35%

23% 27%

37%

20% 38%

16%

22% 30%

25%

46%

9% 3% 3% 2%

2% 3% 2%

2%

Learn About aProduct or Service

Purchase Use or Access Receive CustomerSupport

In-person Online Phone Mobile Mail

Policy

Inquiry and

Problem

Resolution

Policy Issue

and

Onboarding

Policy

Transactions

7


CAPABILITY GAPS LIMIT CUSTOMER RESPONSES

Effective provision of

multichannel service

requires addressing factors

that contribute toward

inefficiencies and manual

work for operations.

A majority of executives

report legacy systems and

business environment

collectively drive the creation

of manual work in operations

processes.

In addition, 88% of

executives report concern

about the effect of manual

work on their ability to drive

efficiency.

Drivers of Manual Work in Operations Processes

Percentage of Operations Executives, 2012

Source: CEB 2012 FS Operations Leadership Council Automation Survey.

n = 58.

Negative Consequences of the Level of Manual Work

Percentage of Operations Executives, 2012

62% 59%

38%

15%

Legacy SystemsEnvironment

Business Environment Regulatory Environment Customer Demands

Source: CEB 2012 FS Operations Leadership Council Automation Survey.

n = 61.

Ability to

Drive

Efficiency

88%

Ability to

Respond to

Change

69%

Ability to

Meet Customer

Demand

62%

Ability to

Manage Risk

57%

Ability to

Keep Up With

Competitors

53%

8

Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings


© 2015 CEB. All Rights Reserved. 9


FORECASTING GLOBAL TECHNOLOGY SPEND

In response to the

ineffectiveness of outdated

core systems, insurers are

planning to upgrade their

PAS.

Global Policy Administration Systems Technology Spend

In Millions USD, 2014(E)-2019(P)

Source: CEB Analysis

$3,414

$3,532

$3,672

$3,846

$4,092

$4,436

$3,000

$3,200

$3,400

$3,600

$3,800

$4,000

$4,200

$4,400

$4,600

$4,800

$5,000

2014E 2015P 2016P 2017P 2018P 2019P

Development in the PAS

market centers on user

enhancements, operational

efficiency, and analytics.

The market is also seeing

particular growth toward

flexibility and usability tools

that enhance the experience

of end users and

configuration analysts.

10

EMERGING TECHNOLOGIES IN POLICY ADMINISTRATION


Emerging Technology Matrix

Usability and Workflow Emerging Operational Capabilities

Process Management: Configurable workflows that automate onboarding,

investment actions, and standardize data capture for regulatory compliance

(e.g., KYC, AML, etc.).

Interactive Visualizations: Capability that allows for real-time and user-driven

selection and representation of data for analysis, decisioning, and workflow

improvements.

Data Integration: Function that connects disparate recordkeeping applications,

core systems, and external data to provide a complete customer view.

Predictive Operational Analytics: Tools that analyze current and historical

client data to predict future outcomes and enable delivery of customized policy

services.

Enterprise Collaboration: Set of productivity tools that allows internal staff and

agents to collaborate on policy files in real-time .

Mobility: Technology that equips users to interact with the system at all times to

eliminate the need for co-location of knowledge workers.

Real-time Processing: Feature that integrates external data sources and policy

administration through collaborative technologies, including CRM and ECM.

Cloud and Virtualized Application Platforms: Flexible software delivery

frameworks that include various models of hosted applications, SaaS-based

deployments, and virtual platforms.

DEFINITIONS

ROI Potential: The

relative returns an

institution can

expect to receive

from an investment

in the technology

Technology State:

The technology’s

level of development

Workflow Impact:

The level of change

the technology will

have on current

operations and

processes

Minimal

Medium

High

Workflow

Impact

Data

Integration

RO

I P

ote

nti

al

Early Stage In Development

Lo

w

Hig

h

Technology State

Interactive

Visualizations

Enterprise

Collaboration

Predictive

Operational

Analytics

Process

Management

Cloud and Virtualized

Application Platforms

Mobility Real-time

Processing

Source: CEB Analysis.

11

Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings




Life and Annuity Policy Administration Systems

By Date of Initial System Release

2010 1990 2000 1980

MAPPING THE VENDOR LANDSCAPE

Sources: CEB Analysis, Technology Vendors.

Selecting Featured PAS Vendors

We identified vendors for this analysis based on

expert opinion, product maturity, size of installations, and

technological innovation.

LifePro®

ID3 Policy Administration

ALIP

FIMMAS

V3 System

iWorks Compass

Elixir North America

VPAS®

OIPA

AFAS

ALIS

13


Policy Lifecycle

User Experience

Data Input

The system supports

manual, online, and

automated input of policy

setup data including

features and investments.

Underwriting

The system supports

underwriting functions and

systems with data needed

for policy decisions.

Illustration Access

The system can access

historical policy illustration

data and premium quotes

from external tools.

Product Management

The system supports new

and updated products with

common and innovative

features.

Issue and Invest

The system supports policy

issuance with common

product guarantees and

investments.

Ongoing Processing


processing (premiums,

claims, policy changes, and

investment functions).

Data Accessibility

The system makes data

easily accessible to

functional stakeholders,

including employees,

agents, and auditors.

6 5 4 3 2 1

Dashboards

The system presents users

with role-specific

dashboards displaying key

metrics and allowing process

actions.

7

Reporting

The system supports bulk or

ad-hoc reporting

capabilities for financial,

operational, or compliance

needs.

Analytics

The system collects and

analyzes policy data to

produce meaningful

operational insights to

improve processing.

Geographic Support

The system provides

support for multiple

currencies, languages, and

other geographic variations.

Deployment Support

The vendor offers on-site,

hosted, or cloud options

with support during and

after implementation.

Security Compliance

The system provides audit

trails, information controls,

compliance tools, and

roles-based access.

14 16 17 18 13

Ente

rpris

e S

upport

Opera

tional S

upport

15

Distribution

The system supports

multiple distribution

channels and data

interchange with external

producer systems.

Documents and Forms

The system can input,

manage, and produce

policy documents and

forms in hardcopy and

digital formats.

External Data

The system integrates

third-party data including

investments and financial

data supporting features

and guarantees.

9

10

8

Workflow

The system has advanced

workflow management to

model, automate, monitor,

and adjust policies.

11

User Interface

The UI is intuitive and

configurable with views of

transaction entry screens,

current, and historical data.

12

Current Effectiveness Potential Impact

5 = Superior Capability We or our vendor offer this

regularly, systematically, and at the

highest standard.

5 = Very High

Impact

Our firm considers this attribute mission

critical when performed at the highest

standard.

4 = Strong Capability We or our vendor offer this regularly

and systematically.

4 = High Impact Our firm considers this attribute highly

important when performed at the highest

standard.

3 = Adequate Capability We or our vendor offer this regularly

but in an ad hoc manner.

3 = Moderate

Impact

Our firm considers this attribute moderately


standard.

2 = Marginal Capability We or our vendor offer this irregularly

and in an ad hoc manner.

2 = Low Impact Our firm considers this attribute somewhat


standard.

1 = Weak or not at all We or our vendor do not do this at all. 1 = No Impact Our firm does not consider this attribute


standard.

Attribute Grading

HOW TO USE THIS ANATOMY

The anatomy is designed to assist insurance executives to better assess and prioritize components of their

technology investment. As you use this anatomy, please consider your firm’s business strategy and current

technology maturity.

1. Rate the impact of each attribute to your business and your firm’s effectiveness on a 1-5 scale using the

grading scale below and tally the results using the scorecard.

2. Map the results on the scorecard to identify areas that are most important, but where your firm is least

effective.

Product Pricing

The vendor offers flexible

pricing for ongoing support

and price discounts for

additional purchases.

19

Tech Innovation

The vendor has a proven

innovation track record, a

market-leading roadmap,

and resources for long-

term support.

Vendor Stability

The vendor has an

established presence,

sound financials’, and can

provide long-term, secure

support.

21

20

Product Maturity

The product is mature in

the market and has a

steady or growing market

share and client base.

22

L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY

14


DIAGNOSTIC ANATOMY SCORECARD

Insurance executives

should complete this

scorecard using the Policy

Administration Diagnostic

Anatomy tool.

15

Attribute Categories Alignment Attributes Potential Impact

Importance of

Improvement

1. Data Input

2. Underwriting

Policy 3. Illustration Access

Lifecycle 4. Product Management

5. Issue and Invest

6. Ongoing Processing

7. Data Accessibility

8. Distribution

Operational 9. Documents and Forms

Support 10. External Data

11. Workflow

12. User Interface

13. Dashboards

User 14. Reporting

Experience 15. Analytics

16. Geographic Support

17. Deployment Support

18. Security Compliance

Enterprise 19. Product Pricing

Support 20. Technology Innovation

21. Vendor Stability

22. Product Maturity



should map their attribute

scores from rating their

impact and effectiveness

on the previous page on

this matrix to identify the

most important areas to

their vendor selection.

DIAGNOSTIC ANATOMY SCORECARD

Po

ten

tia

l Im

pac

t

5 = Very High

4 = High

3 = Moderate

2 = Low

1 = No Impact 1 =

Weak

2 =

Marg

inal

3 =

Adequate

4 =

Stro

ng

5 =

Superio

r

Current Effectiveness

Areas of Focus

16

Feature Definition

Line of Business Support

Life Insurance – Term Life The solution provides support for term life insurance.

Life Insurance – Universal Life The solution provides support for universal life insurance.

Life Insurance – Whole Life The solution provides support for whole life insurance.

Life Insurance – Variable Life The solution provides support for variable life insurance.

Life Insurance – Interest-Bearing Cash

Value Products The solution provides support for interest-bearing cash value products.

Life Insurance – Variable Cash Value

Products The solution provides support for variable cash value products.

Annuities – Deferred Fixed

Accumulation The solution provides support for deferred fixed accumulation insurance products.

Annuities – Deferred Variable

Accumulation The system provides support for deferred variable accumulation insurance products.

Annuities – Fixed Payout The solution provides support for term fixed payout insurance products.

Annuities – Variable Payout The solution provides support for term variable payout insurance products.

Life Riders – Long-Term Care,

Accidental, Death, and

Dismemberment The solution provides support for long-term care and accidental, death, and dismemberment insurance products.

Core Policy Lifecycle

Dynamic Questions for Data Input The system supports manual, online, and automated input of policy setup data, including features and investments.

Premium Quoting The system supports and automates using policy illustration data and premium quotes for prospective customers.

Issue and Invest The system supports policy issuance, investment choices (if applicable), and policy document output.

FEATURE AUDIT DEFINITIONS


Feature Definition

Core Policy Lifecycle (continued)

Ongoing Processing The system supports policy processing (e.g., premiums, claims, policy changes, and investment functions).

Data Accessibility The system makes data accessible to functional stakeholders, including employees, agents, and auditors.

Product Management The system supports new and updated products with common and innovative features and guarantees.

Underwriting The system supports underwriting functions and systems with data needed for policy decisions.

Operational Support

Distribution The system supports multiple distribution channels and data interchange with external producer systems.

Forms/Document Library The system has a library of common forms and documents, including industry standards (e.g., ACORD) and data

exchange standards (e.g., XML).

Forms/Document Generation The system has capabilities to enable generation of standard or custom documents and forms.

Customer Information Search The system allows authorized users to search for current and historical customer information, including “as-of” searches.

Historical Customer Data Storage The system stores historical customer information to allow carriers to track changes over time.

Rules Engine The system has a built-in rules engine that allows rules creation, editing, testing, and analysis.

Internal Process Management The system has built-in BPM (or links to external BPM) capabilities that allow creation, editing, testing, and analysis of

process automation.

External Process Management The system uses an external BPM solution with capabilities that allow creation, editing, testing, and analysis of policy

administration process automation.

Audit Trails The system keeps a record of the sequence of activities that have affected each policy file in the system.

Pre-Integration with Third-Party Data

Providers

The system is pre-built with interfaces to load in data from common third-party data providers, including MIB or credit

rating agencies.

FEATURE AUDIT DEFINITIONS


Feature Definitions:

• Native Feature: Contained in the base package of the solution provided solely by the firm

• Premium Feature: Only available at an additional cost or as an addition to the base package of the solution, and is provided solely by the firm.

• Partner Feature: Only available at an additional cost or as an addition to the base package of the solution, and is provided by a third-party firm.

18

FEATURE AUDIT

Feature Audit for Accenture – Accenture Life Insurance Platform

Line of Business Support Core Policy Lifecycle Operational Support

Life Insurance – Term Life Dynamic Questions for

Data Input Distribution

Life Insurance – Universal Life Premium Quoting Forms/Document Library

Life Insurance – Whole Life Issue and Invest Forms/Document Generation

Life Insurance – Variable Life Ongoing Processing Customer Information Search

Life Insurance – Interest-Bearing

Cash Value Products Data Accessibility Historical Customer

Data Storage

Life Insurance – Variable

Cash Value Products Product Management Rules Engine

Annuities – Deferred Fixed

Accumulation Underwriting Internal Process Management

Annuities – Deferred

Variable Accumulation External Process Management

Annuities – Fixed Payout Audit Trails

Annuities – Variable Payout Pre-Integration with Third-Party

Data Providers

Life Riders – LTC, Accidental,

Death, and Dismemberment


Offered Native

Not Currently Offered and No Plans

To Be Offered in Next 12 Months

Offered Premium

Offered Partner

To Be Offered in Next 24 Months

19


ACCENTURE LIFE INSURANCE PLATFORM ACCENTURE

Key Statistics

Company Type: Public

Year Founded: 1989

Headquarters: Murray Hill, NJ

Dedicated Product FTEs: 400+

Company Overview

Serving more than 200 cities in 56 countries, Accenture is a multinational management consulting, technology

services, and outsourcing company. Within Accenture Software, the company has significantly expanded its

insurance operations through the acquisitions of Duck Creek Technologies in 2011, Mortgage Cadence in

2013, and the development of Insurance Data Migration Factory. The firm is also in the process of extending

its offerings through digital innovations, such as SmartVideo, Web Recording, and Mobility that further drive

client engagement and product utilization.

Product Overview

The Accenture Life Insurance Platform (ALIP) is offered as a pre-integrated suite of components including

product and business rules engine, electronic applications, underwriting, case management, policy

administration, and payout administration. Clients can either choose all components as a suite or as individual

standalone modules. Additionally, as a platform-neutral solution, it can integrate with any third-party system.

As part of its ongoing roadmap initiatives, a new feature is the availability of an out-of-the-box portal solution

that allows clients to integrate with back-end systems and improve overall customer service capabilities.

Product Highlights

Rules Engine: With 40+ standard features and 100 transaction templates, a configurable business rules

engine sits at the core of ALIP. It not only provides a locking functionality that restricts other users to read-

only access when a user is modifying a rule, but also provides a testing tool that allows the user to test the

changes. When a user changes a rule, that change is instantly applied throughout the entire platform.

Electronic Applications: This component facilitates the completion of a life insurance or annuity

application. Consumers, agents, and home office users can complete applications online, capture

signatures, and then submit. This component also reacts to application responses by asking additional

reflexive questions, and then based on rules, determines the next steps in the process. With automated

workflow and task box generation, users are notified of case status and the actions required.

Underwriting: ALIP uses an automated decision engine that can enhance underwriting risk analysis.

Configurable underwriting guidelines and rules react to the consumer's application responses and

requirement results with a series of underwriting decisions based on user-defined criteria, thereby providing

automatic decisions.

CEB TowerGroup View

Accenture’s continued investment in ALIP demonstrates their commitment to this market. Since our first view

of ALIP, there has been a steady increase in both functionality and technology, as seen in the development of

integration accelerators supported by a pure Java application. Additionally, ALIP also has a quality interface, a

separate actuarial calculation tool, and a dedicated tool for data migration to help accelerate the pace of

conversion. For next steps, Accenture can expand their pricing flexibility for ongoing support, maintenance,

and additional purchases.

Sources: Accenture, CEB Analysis.

<$100

Million

$100-999

Million

$1-9.99

Billion

>$10

Billion

0% 21% 42% 37%

Distribution of Clients by

Net Premiums Written

Distribution of Clients by Region

0-4% 20-39% 60-79%

5-19% 40-59% 80-100%

Current

Market

Future

Investment

Vendor

Landscape

Product

Rankings




“Best-in-Class”

Policy Lifecycle

“Best-in-Class”

Enterprise

Support

“Best-in-Class”

User Experience

“Best-in-Class”

Operational

Support

AT

TR

IBU

TE

S

Mis

sio

n C

riti

cal

Data Input

Data Accessibility

Illustration Access

Product

Management

Distribution Product Pricing

Vendor Stability

Str

on

g P

rio

rity

Underwriting

Ongoing

Processing

Document and

Forms

External Data

Geographic

Support

Reporting

Deployment

Support

Technology

Innovation

Dif

fere

nti

ato

r

Issue and Invest Workflow

Analytics

Dashboards

User Interface

Product Maturity

Security

Compliance

CREATING OUR “BEST-IN-CLASS” PRODUCT RANKINGS

Policy Lifecycle

Those attributes that

manage the lifecycle of

customer policies from

data input to ongoing

processing.

Operational Support


support adjacent

functions including

underwriting, product

management, and

distribution.

User Experience


evaluate the system’s

usability and its

alignment to an

insurer’s workflow and

reporting needs.

Enterprise

Support


influence the

enterprise’s tactical fit,

segment focus, and

strategic alignment

with the vendor.

CA

TE

GO

RIE

S

Phase 1

Utilizing qualitative and

quantitative data, we identified 22

attributes that define a “Best-in-

Class” Policy Administration

System, which are grouped into

four categories.

Phase 2

Recognizing that all attributes are

not equally important, we divide

them into tiers to reflect their level

of importance as mission critical,

strong priority, or differentiators.

Phase 3

Certain products are recognized

as “Best-in-Class” after scoring

each product based on its

performance at an attribute level.


22


PRODUCT RANKING MATRIX


should use the ranking

matrix in combination with

the PAS Diagnostic

Anatomy to select the

provider that best aligns

with their firm’s needs.

Vendor rankings are based on

our five-point rating system for

each of the 22 attributes in our

Policy Administration Systems

Diagnostic Anatomy.

Listed Alphabetically by Vendor, 1.0-5.0 Scale

Vendor Product Policy

Lifecycle

Operational

Support

User

Experience

Enterprise

Support

Accenture

Accenture Life

Insurance

Platform 4.86 4.75 4.40 4.17

Vendor A Product A 4.57 3.75 3.20 3.83

Vendor B Product B 4.50 4.25 3.80 4.17

Vendor C Product C 5.00 4.00 3.60 4.33

Vendor D Product D 4.43 3.75 2.80 3.50

Vendor E Product E 4.86 4.00 4.00 4.17

Vendor F Product F 4.71 3.75 4.60 4.17

Vendor G Product G 4.57 3.75 3.80 4.33

Vendor H Product H 4.17 4.00 4.40 4.00

Vendor I Product I 3.67 3.00 2.60 3.00

Vendor J Product J 4.29 4.25 4.20 4.33


This graphic was published by CEB as part of a larger research report and should be evaluated in the context of the entire report.

CEB Technology Assessment research is a qualitative evaluation of a set of vendors in a specific market; it is NOT a stack ranking.

CEB does not endorse any vendor, product or service depicted in its research publications, and does not advise technology users to

select only those vendors with the highest ratings. CEB and CEB TowerGroup research publications consist of the opinions of its

research analysts and should not be construed as statements of fact. CEB Disclaims all warranties of commercial viability or fitness

for a particular purpose.

= Best-in-Class in Anatomy Category


Accenture received “Best-

in-Class” achievements in

the Policy Lifecycle,

Operational Support, and

User Experience

categories.

Policy Lifecycle includes those

attributes that that manage the

lifecycle of customer policies

from data input to ongoing

processing.

Operational Support includes

those attributes that support

adjacent functions including

underwriting, product

management, and distribution.

User Experience includes

those attributes that evaluate

the system’s usability and its

alignment to an insurer’s

workflow and reporting needs.

“BEST-IN-CLASS” ACHIEVEMENTS FOR ACCENTURE

Category Scoring Analysis

Policy Lifecycle

With version 2014.1, released in September 2014, ALIP demonstrated the breadth and

depth of its policy lifecycle capabilities. These capabilities include the ability to

dynamically generate questions based on the collection of customer policy data, an

underwriting module that allows users to test and analyze rules and workflow without

programmatic changes, and built-in integration with best-of-breed applications for

illustration data and premium quotes.

ALIP's Product Testing Workbench enhances and accelerates product development

and management. The product and business rules engine provides testing features

that can be used without the need for a programmer, simplifying policy issuance and

re-issuance.

Operational

Support

Equipped with an advanced workflow management tool, ALIP can be used to manage,

specify, and design the interrelations between processes. This includes page

navigation, transaction entry, and other user interactive processes. The tool also allows

for multiple workflows to support a single process. These configurable workflows can

then be used to route users down different paths based on criteria such as user types,

product types, distribution channels, and even language of the user.

ALIP stood out in its distribution capabilities for supporting multiple channels and data

interchange with external producer systems. For example, the system provides a

repository for sales agent/producer information, allowing users to establish, track,

display, and maintain agent infrastructure and commission/compensation processing.

User Experience

With a browser-based and fully configurable UI, screens can be redesigned to present

a customized look based on user type. Accenture also employs standard UI best

practices, such as expandable and collapsible sections of data, paginated search

results, persistent dynamic drop-down menus, human language search, and action

links in strategic screen locations to improve its technical capabilities and user

friendliness.

ALIP comes pre-integrated with the reporting tool BIRT for the design and rendering of

reports and provides several reports out of the box. The BIRT toolset is coupled with a

visually interactive GUI for building regular reports or ad-hoc reports for financial,

operational, and compliance needs. Report output can be generated in various formats

depending on consumer needs (e.g., PDF, HTML, XML, CSV, etc.).


24


Policy Lifecycle

User Experience

Data Input

The system supports

manual, online, and

automated input of policy

setup data including

features and investments.

Underwriting

The system supports

underwriting functions and

systems with data needed

for policy decisions.

Illustration Access

The system can access

historical policy illustration

data and premium quotes

from external tools.

Product Management

The system supports new

and updated products with

common and innovative

features.

Issue and Invest


issuance with common

product guarantees and

investments.

Ongoing Processing


processing (premiums,

claims, policy changes, and

investment functions).

Data Accessibility

The system makes data

easily accessible to

functional stakeholders,

including employees,


6 5 4 3 2 1

Dashboards

The system presents users

with role-specific

dashboards displaying key

metrics and allowing process

actions.

7

Reporting

The system supports bulk or

ad-hoc reporting capabilities

for financial, operational, or

compliance needs.

Analytics

The system collects and

analyzes policy data to

produce meaningful

operational insights to

improve processing.

Geographic Support

The system provides

support for multiple

currencies, languages, and

other geographic variations.

Deployment Support

The vendor offers on-site,

hosted, or cloud options

with support during and

after implementation.

Security Compliance

The system provides audit

trails, information controls,

compliance tools, and

roles-based access.

14 16 17 18 13

Ente

rpris

e S

upport

Opera

tional S

upport

15

Distribution

The system supports

multiple distribution

channels and data

interchange with external

producer systems.

Documents and Forms

The system can input,

manage, and produce

policy documents and

forms in hardcopy and

digital formats.

External Data

The system integrates

third-party data including

investments and financial

data supporting features

and guarantees.

9

10

8

Workflow

The system has advanced

workflow management to

model, automate, monitor,

and adjust policies.

11

User Interface

The UI is intuitive and

configurable with views of

transaction entry screens,

current, and historical data.

12

Product Pricing

The vendor offers flexible

pricing for ongoing support

and price discounts for

additional purchases.

19

Tech Innovation

The vendor has a proven

innovation track record, a

market-leading roadmap,

and resources for long-

term support

Vendor Stability

The vendor has an

established presence,

sound financials, and can

provide long-term, secure

support.

21

20

Product Maturity

The product is mature in

the market and has a

steady or growing market

share and client base.

22

L&A POLICY ADMINISTRATION SYSTEMS DIAGNOSTIC ANATOMY

Scoring Methodology

To arrive at a vendor ranking, we developed a proprietary scoring metric outlined by the

attributes within this anatomy that highlights the major elements of an enterprise investment

decision. This metric assumes that every element is not equally important, and therefore

assigns a higher level of importance to those attributes critical to a policy administration

system. The remaining attributes are then divided further into three tiers to reflect their level

of importance, highlighted below.

Tier 1 Attributes

“Mission Critical”

Tier 2 Attributes

“Strong Priority” Tier 3 Attributes

“Product Differentiators”

Data Input

Illustration Access

Product Management

Data Accessibility

Distribution

Product Pricing

Vendor Stability

Underwriting

Ongoing Processing

Documents and Forms

External Data

Reporting

Geographic Support

Deployment Support

Technology Innovation

Issue and Invest

Workflow

User Interface

Dashboards

Analytics

Security Compliance

Product Maturity

25


UNDERSTANDING OUR SCORING METHODOLOGY

Policy Administration Systems Technology Analysis Internal Scoring Guide

Illustrative We developed a unique

scoring methodology that

highlights the key priorities

for an executive’s

investment decision.

Every vendor product featured

in this report is scored against

each of the 22 attributes

outlined in the diagnostic

anatomy on a standardized 1-5

scale.

We calculate the weighted

average of a product’s attribute

scores in each of the four

categories of the anatomy to

arrive at an overall category

score.

An

ato

my

Category Policy Lifecycle Operational Support

Attribute

Title Data Accessibility Workflow

Attribute

Definition

The system makes data easily accessible

to functional stakeholders, including

employees, agents, and auditors.

The system has advanced workflow

management to model, automate,

monitor, and adjust policies.

Sco

rin

g M

etr

ic

5 The solution allows users to search and access

policy information, and report on the search

results.

The technology has workflow tools that vary for

individual users based on their roles and

permissions and is aligned to any external BPM

solutions.

4 The solution stores and presents historical policy

data to authorized users, but it does not require

programmatic changes.

The technology has workflow tools that vary for

individual users based on their roles and

permissions.

3 The solution stores and presents historical policy

data to authorized users, but it requires

programmatic changes.

The technology has tools that allow carriers to

balance workloads and assign tasks to

appropriate users.

2 The solution makes data easily accessible to

functional stakeholders, including employees,


The technology has advanced workflow

management to model, automate, monitor, and

adjust policies.

1 The solution does not make data easily accessible

to functional stakeholders, including employees,


The technology does not have advanced workflow

management to model, automate, monitor, and

adjust policies.

Attribute Score: 5.0 3.0

SCORE


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