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<p> Wenli Yuan, KyongSun Kong May 22, 2013 ASIA-PACIFIC INSURANCE DISTRIBUTION MANAGEMENT SYSTEMS GROWTH THROUGH SUPERIOR PRODUCER SERVICE This authorized reprint contains an excerpt from a Celent report profiling and evaluating 11 different distribution management systems. The full report is 77 pages long. The report was not sponsored by C2l Biz Solutions Private Limited in any way. This reprint was prepared specifically for C2l Biz Solutions Private Limited, but the analysis has not been changed. For more information on the full report, please contact Celent at www.celent.com, info@celent.com. CONTENTS Executive Summary ............................................................................................................ 1 Introduction.......................................................................................................................... 2 Distribution Management Systems: Definition and Functionality ........................................ 4 Definition .......................................................................................................................... 5 Report Methodology ............................................................................................................ 6 Criteria for Inclusion ......................................................................................................... 6 Evaluation Process .......................................................................................................... 6 Celent’s ABCD Vendor View ............................................................................................... 7 The XCelent Awards ........................................................................................................ 8 About the Profiles ................................................................................................................ 9 C2L BIZ Solutions: SymbioSys - Distribution Management System................................. 10 Company and Product Background .............................................................................. 10 Lines of Business .......................................................................................................... 11 Functionality .................................................................................................................. 11 Usability, Analytics and Document Management .......................................................... 16 Technology .................................................................................................................... 17 Implementation and Costs ............................................................................................. 18 Summary ....................................................................................................................... 19 Leveraging Celent’s Expertise .......................................................................................... 21 Support for Financial Institutions ................................................................................... 21 Support for Vendors ...................................................................................................... 21 Related Celent Research .................................................................................................. 22 EXECUTIVE SUMMARY Insurers are increasingly using producer service excellence as a tactic to retain and grow business. The activity level is high in the distribution management automation space among both insurers and vendors. From January 2011 to January 2013, 26 insurers licensed one of the new systems profiled in our report. This report helps insurers refine their distribution management system strategies and, where appropriate, establish a list of vendors for evaluation. Six distribution management systems are fully profiled. All are used in Asia-Pacific for at least one line of business in life, annuities, health, or property and casualty insurance. Five limited profiles are included for market entrants, systems that did not meet the criteria for a full profile, or (in one case) a vendor that chose not to be included in the full profiles. This report also names the winners of the XCelent Awards. C h a p te r: I n tr o d u c ti o n 2 INTRODUCTION Insurers are increasingly using producer service excellence as a way to retain and grow business. Expanded functionality and improved technology mean that insurers continue to have a wide spectrum of systems and vendors to consider when they are looking for a solution that fits their needs. This review helps insurers refine their distribution management system strategies and, where appropriate, create a list of appropriate vendors for evaluation. This report includes full profiles for six Asia-Pacific distribution management systems that met the inclusion criteria described in the Report Methodology section. Five limited profiles are provided for market entrants, for systems that did not satisfy all the inclusion criteria, and, in one case, a vendor that chose to not be included in the full profiles. This review also uses Celent’s ABCD Vendor View, which is our standard representation of a vendor marketplace, designed to show at a glance the relative positions of each vendor in four categories: Advanced technology, Breadth of functionality, Customer base, and Depth of client services. Insurers should consider which factors are most important to them, and review the detailed profiles in this report with these in mind. In evaluating alternative systems, Celent urges insurers to develop a clear understanding of their needs in these key areas: Level of insurer control in maintaining the system: How important is it to be self- sufficient in making updates to the application, and how much does the insurer want to rely on the chosen vendor for services? Support models vary between suppliers, from complete independence after implementation to significant dependence on vendor resources for modifications. Level of IT control in maintaining the system: How important is it to transfer system maintenance from a technical (IT) area to business users / business analysts? Systems also vary regarding their design and the utilities provided to allow nontechnical personnel to build and modify commission plans, change screen layouts, and even set up automated data exchange between systems. Before evaluating alternatives, insurers should determine the extent to which they want updates performed outside of a technical systems area. Enterprise or division scope: Will the system be used for multiple lines of business across the enterprise, or will it be applied to divisional and/or targeted, monoline organizations? If multichannel/multiline support is needed, applications must be carefully vetted regarding their ability to effectively handle this requirement effectively with acceptable performance. Level of agent self-service: To what degree will the agent/producer force be involved with the system? The degree of self-service varies between applications, with some allowing only basic demographic viewing or updating, others handling simple transactions such as problem reporting and routing, and some enabling more advanced transaction processing for producers such as creation of custom, ad hoc reports. Use of BPO services: Insurers are encouraged to determine if selected activities involved with distribution management can be outsourced. For example, the administration of licensing, first-level call center support for agents, and onboarding assistance are candidate processes for placement with a vendor. Number/depth of prebuilt components: Vendors vary in the number and sophistication of insurance-specific frameworks that are delivered with the base C h a p te r: I n tr o d u c ti o n 3 system. Examples include common commission plan structures/calculations, basic workflows for onboarding, and simple escalation logic for the routing of problem tickets. The availability of prebuilt components accelerates the implementation process and can be a source of best practice. Insurers should discover how many such utilities are offered by each vendor and evaluate the functional depth of the activities with the highest priority. C h a p te r: D is tr ib u ti o n M a n a g e m e n t S y s te m s : D e fi n it io n a n d F u n c ti o n a lit y 4 DISTRIBUTION MANAGEMENT SYSTEMS: DEFINITION AND FUNCTIONALITY Distribution processes involve disparate administrative functions that are focused on operational issues such as configuring compensation plans, administering payment and reconciliation, registering and licensing producers and tracking education requirements. A conceptual view of what Celent calls “producer lifecycle management” is depicted in Figure 1. Figure 1: Producer Management Lifecycle Source: Celent To a producer, all of these tasks are part of maintaining and growing a relationship with an insurer. When service issues arise, agents are not interested in knowing that different people handle different parts of the process using systems that do not “speak” to one another. They would like their commission or licensing or contracting problem resolved immediately with as little time investment as possible. However, in a typical insurance environment, multiple departments perform separate tasks in the cycle. Coordination of activity and integration of information is minimal. This is especially problematic since producer management involves a substantial volume of transactions and data from multiple sources. Typical processes and automation were designed for an environment that has long since passed—one that was much more stable and predictable. These conditions result in multiple issues including poor service, a lack of insight into producer performance, unreliable data, and high support costs. It is critical to increase production within existing agents (to keep them happy), necessary to expand into new producers (to bring them onboard quickly and with minimal hassle), and essential to monitor performance of all sales activities (to know who is doing what and take action appropriately). C h a p te r: D is tr ib u ti o n M a n a g e m e n t S y s te m s : D e fi n it io n a n d F u n c ti o n a lit y 5 Many insurers are also expanding into additional distribution channels, such as bancassurance, direct marketing, and online channels. Celent believes there is an opportunity for insurance companies to gain market share through the execution of a strategic approach to producer lifecycle management. Carriers can gain competitive advantage in their distribution efforts if they bring together and consolidate these various processes to create an integrated approach that delivers higher quality service, more reliable information, and lower costs. Accomplishing this goal will require process optimization and integrated automation, both of which are highly dependent on technology. However, in the past, system solutions have also been fractured. Separate vendor applications were required to accomplish all the tasks across the lifecyle because no offering “did it all.” In this report, Celent reviews distribution management systems as a single set of activities that includes what has historically been labeled enterprise incentive management (EIM) and licensing and compliance systems. Applications are evaluated based on their ability to address the full lifecycle of a company-producer relationship. DEFINITION This broad approach to distribution management results in the following components being in scope for review (see Table 1). Table 1: Distribution Management System: Components COMPONENT MAJOR TASKS Compensation Management Commission calculations, commission hierarchy, plan management Customer Relationship Management (CRM) Coordination of customer data and communication Document Management Creation and maintenance of commission statements and correspondence with distribution resources; may extend to correspondence with end customers as well Producer Appointment Management (licensing, hierarchy management, renewal, termination) Appointment, hierarchy management, renewal, termination activities Producer Licensing and Licensing Compliance Management Producer licensing, renewal, and termination; including interface with states for reporting and for updating of compliance requirements Producer Onboarding Management Workflow and task automation to speed process of establishing a new agent Producer Portal Agent self-service inquiry and, in some systems, transaction support Producer Recruitment Management Agent self-service inquiry and, in some systems, transaction support Registration Management for Producers of Variable Products Interface with regulators to ease administration of agents selling variable products Sales Performance Reporting and Management Tracking, reporting and predicting past, present, and future producer performance Source: Celent C h a p te r: R e p o rt M e th o d o lo g y 6 REPORT METHODOLOGY CRITERIA FOR INCLUSION Celent’s objective has been to include in this report as many as possible of the leading distribution management systems being used or actively sold to Asia-Pacific insurers. The report contains two types of profiles: full and limited. The topics covered in both types of profiles are broadly similar; however, full profiles are written with more detail and include comments from reference insurers. Additionally, vendors with a full profile are included in the Celent ABCD Vendor View; limited profile vendors are not. The criteria to be included as a full profile are: At least two Asia-Pacific life/annuities, health, or property & casualty insurance customers in production. Participation by at least two reference customers. These criteria were designed to maximize the number of systems that can be reasonably expected to remain available (and viable) based on vendor size and strength, maturity of product and client base, and other important factors. One exception is for C2L BIZ Solutions. Its SymbioSys - Distribution Management System was developed in 2011 and 2012. In a short period it already has one client in production and two more clients in implementation. We included this solution in the full profile section. The limited profile section includes five vendors that did not meet the criteria for a full evaluation but did provide significant information about their offerings. In one case, a vendor chose not be included as a full profile. When initiating a solution search, insurers are encouraged to contact these suppliers and receive an update on their current activities in Asia-Pacific. EVALUATION PROCESS Celent sent a detailed RFI to a broad set of distribution management system vendors. After receiving completed RFIs, each full profile vendor provided a briefing concentrating on usability and functionality for everyday users, and rules, tools, and connectivity for IT or administrative users. Celent also asked at least two references provided by each vendor to complete an online survey in order to obtain their view of the system’s business and technology value. Both the RFIs and the reference surveys provided quantitative and qualitative data. Vendors had an opportunity to review their profiles for factual accuracy but did not influence the overall evaluation or the placement in the ABCD Vendor View. Celent has retained final authority over the content of the published profiles. Some of the vendors profiled in this report are Celent clients, and some are not. No preference was given to Celent clients either for inclusion in the report or for the subsequent evaluation. Not all data gathered from the detailed RFI, vendor briefing and demo, and reference surveys has been included in each profile. Celent has attempted to capture key points and values about each vendor at an appropriate level. Unpublished information remains in the Celent knowledge base and is available to Celent’s subscription and consulting clients. C h a p te r: C e le n t’ s A B C D V e n d o r V ie w 7 CELENT’S ABCD VENDOR VIEW Celent’s framework for evaluating vendors is the Celent ABCD Vendor View. This is a standard representation of a vendor marketplace designed to show at a glance the relative positions of each vendor in four categories: Advanced technology, Breadth of functionality, Customer base, and Depth of client services. The Celent ABCD Vendor View shows positions of each solution evaluated. Each vendor solution is judged relative to the others in the group. While this is a standard tool that Celent uses across vendor reports in many different areas, each report will define each category slightly differently. For this report, some of the factors used to evaluate each vendor are listed in Table 2. Table 2: Factors Used in the Distribution Management System ABCD Advanced Technology (and flexible technology) Usability for both business and system administration users Code base, including modernity of language and consistency of architecture Range of databases, operating systems, application servers, and integration methods supported Ability to modify system using visual tools rather than through code Method of extending data model (tools only, mix, coding only) Extent of business user involvement in making changes Reference comments regarding technologies and flexibility Breadth of Functionality Components as well as functions and features provided in base offering Functions and features provided through configuration by a nontechnical business user Power and ease of use of rules, workflow, and product configuration capabilities Supported and in production lines of business Reference comments regarding functionality Customer Base Number of Asia-Pacific clients on current or previous version Number of Asia-Pacific clients on last upgraded versions Number of new Asia-Pacific clients since January 2011 Number of Tier 1/Tier 2 Asia-Pacific clients Depth of Customer Service Size and experience of professional services and support team Reference comments on implementation experience Reference comments regarding quality of on-going support Flexibility in pricing models Source: Celent C h a p te r: C e le n t’ s A B C D V e n d o r V ie w 8 THE XCELENT AWARDS Within this framework, the top performers in each of the ABCD dimensions are recognized with a corresponding XCelent Award: XCelent Technology for the leading Advanced Technology score XCelent Functionality for the leading Breadth of Functionality score XCelent Customer Base for the leading Customer Base score XCelent Service for the leading Depth of Service score Celent advises insurers to look at complete solution profiles at the next part of this report to better understand each solution. We suggest that insurers consider their specific needs and evaluate each vendor against those needs. Although they are very successful in one or more of the criteria, the XCelent Award winners may not be the best match for an insurer’s specific business goals and solution requirements. C h a p te r: A b o u t th e P ro fi le s 9 ABOUT THE PROFILES Each of the profiles presents information about the vendor and solution, professional services and support capabilities, customer base and reference customer feedback, functionality and lines of business deployed, usability, product configuration, and workflow abilities, technology, implementations, cost, and some summary comments. Concerning fees, Celent asked vendors to provide first year license and first year other implementation costs (work by the insurer, vendor, or third parties) for two hypothetical insurance companies: Insurance Company A, a single licensed insurance company with eight lines of business, producing annual premium of US$250 million; Insurance Holding Company B, with four sub companies, writing in five countries with annual premium of US$2.5 billion. When discussing insurance customers of the various solutions, the profiles use the terms very small, small, medium, large, and very large insurers. Very small insurers (Tier 5) have under US$100 million in annual premium; small (Tier 4) have US$100 million to $499 million; medium (Tier 3) have US$500 million to $999 million; large (Tier 2) have US$1 billion to $4.9 billion; and very large (Tier 1) have US$5 billion or more. Each profile includes a table of available components which lists the vendor’s breakdown of its system into component parts. The profiles also include a list of in production and supported lines of business and the number of clients using the system for those products. Additionally, the profiles include tables detailing functional capabilities and the vendor’s estimate of the use of these features in existing implementations. C h a p te r: 10 C2L BIZ SOLUTIONS: SYMBIOSYS - DISTRIBUTION MANAGEMENT SYSTEM COMPANY AND PRODUCT BACKGROUND C2L BIZ is a privately owned insurance industry solution and service provider. Table 3: C2L BIZ SOLUTIONS Snapshot COMPANY INFORMATION Company Size Approximately US$ 225,000 derived from the agency management solution. 98 employees, 27 of who provide professional services / client support for the agency management solution, with an average of 7 years of industry experience. Headquarters Location Global HQ: Mumbai, India APAC HQ: Singapore DISTRIBUTION MANAGEMENT SYSTEM System Name SymbioSys - Distribution Management System Launch Date 2011 Last Major Release Version 1.1, Aug 2012 No major technology change Target Market Life, health, non-life for all geographies SaaS Offering N/A CUSTOMER BASE Asia-Pacific Clients 1 in production in India 2 in implementation New Asia-Pacific Clients Since January 1, 2011 3 Clients Outside Asia-Pacific 0 Marquee Clients Future Generali Life Insurance company limited Source: Vendor RFI C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 11 LINES OF BUSINESS SymbioSys - Distribution Management System is designed for all lines of business, but currently only has life business in production. Non-life and health insurance will be in production by December 2013. Table 4: C2L BIZ Solutions - SymbioSys - Distribution Management System: Lines of Business LINE STATUS NUMBER OF ASIA-PACIFIC CUSTOMERS NON-LIFE, COMMERCIAL LINES Supported but not in production 0 NON-LIFE, PERSONAL LINES Supported but not in production 0 SPECIALTY Supported but not in production 0 LIFE In production 1 ANNUITY Supported but not in production 0 HEALTH Supported but not in production 0 Source: Vendor RFI FUNCTIONALITY The components of SymbioSys - Distribution Management System include hierarchy management, performance management, compensation management, and Finance & MIS. Its support status for components surveyed for by Celent is listed in Table 5. Table 5: C2L BIZ Solutions - SymbioSys - Distribution Management System: Components COMPONENT STATUS Compensation Management (commission calculations, commission hierarchy, plan management) Can be licensed/installed as stand-alone component (without Distribution Management solution) Customer Relationship Management (CRM) Not available Document Management Not available; Solution provides for ready-made hooks to integrate with any third party Document Management system Producer Appointment Management (licensing, hierarchy management, renewal, termination) Can be licensed/installed as stand-alone component (without Distribution Management solution) Producer Licensing and Licensing Compliance Management Can be licensed/installed as stand-alone component (without Distribution Management solution) Producer Onboarding Management Can be licensed/installed as stand-alone component (without Distribution Management solution) Producer Portal Can be licensed/installed as stand-alone component (without Distribution Management solution); The next release of SymbioSys - Distribution Portal is scheduled in June 2013 Producer Recruitment Management Not available Registration Management for Producers of Variable Products Available ONLY bundled with Distribution Management (no additional cost) C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 12 Sales Performance Reporting and Management Available ONLY bundled with Distribution Management (no additional cost) Others: Replacement of Policy Available ONLY bundled with Distribution Management (no additional cost) Others: Tax Management Available ONLY bundled with Distribution Management (no additional cost); Country specific taxation rules need to be configured Source: Vendor RFI Almost all of the commission and hierarchy management functions surveyed for by Celent are available either as a base offering or through configuration by a nontechnical business user. Table 6: C2L BIZ Solutions - SymbioSys - Distribution Management System: Commission and Hierarchy Management FEATURE STATUS USE AMONG EXISTING CLIENTS Unlimited-tier commission management Available through configuration by a nontechnical business user ●●● Ability to consolidate commissions from multiple lines / multiple companies in a single processing instance Delivered as part of base system ●●● Set up, calculate, pay and report company sponsored bonuses for agents, managers, and field staff (i.e., bonuses based on production, persistency, and other sales incentive programs for various members of the hierarchy) Available through configuration by a nontechnical business user ●●● Payment hold/release Available through configuration by a nontechnical business user ●●● Payment schedules that can be personalized for individual agents by insurer staff Available through configuration by a nontechnical business user ●●● Administration of payments / recoveries other than commission Delivered as part of base system ●●● User-defined rules managing recoupment, garnishments, and chargebacks Delivered as part of base system ●●● Producer finance history (adjustments, advances, recoupments, payment details) Delivered as part of base system ●●● Prebuilt interfaces to common financial packages Delivered as part of base system (Currently available for SUNGL and ORACLE Financial) ●●● Unlimited levels of hierarchies Available through configuration by a nontechnical business user ●●● Ability to track relationships beyond basic hierarchical relationships Available through configuration by a nontechnical business user ●●● Territory / office hierarchy management Available through configuration by a nontechnical business user ●●● C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 13 Ability to consolidate multiple operating companies, multiple channels, and multiple divisions into a single entity Delivered as part of base system ●●● Ability to consolidate and map multiple IDs into one Delivered as part of base system ●●● Single allocation of portfolio on transfers Available through configuration by a nontechnical business user ●●● Bulk allocation of portfolio on transfers Available through configuration by a nontechnical business user ●●● Automated portfolio transfers Available through configuration by a nontechnical business user ●●● User-defined rules management of orphan portfolio assignments Not available (Orphan portfolio can be transferred manually) Source: Vendor RFI Key: ● = 0–33%; ●● = 34–66%; ●●● = 67–100% SymbioSys supports multiple distribution channels. It supports definition of channels, agencies/partners, and branches, as well as agents. Besides supporting unlimited levels of hierarchies, the system also allow the same level of hierarchies, as well as skip level of hierarchies. System allows configuration of multiple/parallel hierarchies for a given producer, such as commission hierarchy, reporting hierarchy, monitoring hierarchy, geography, relationship manager, training, etc. SymbioSys allows unique compensation and payment rules defined for specific channel, partner, designation, as well as to individual producer. Compensation rule can be defined with expression. In regard to allocation of portfolio on transfers, commission, overriding commission, personal KPI, and group KPI all can be configured to retain with existing hierarchy or transfer to new hierarchy with transfer percentage. Orphan portfolio can only be transferred manually. Many functions of contract and licensing management as well as recruiting and onboarding management are in the base package. Table 7: C2L BIZ Solutions - SymbioSys - Distribution Management System: Producer Management FEATURE STATUS USE AMONG EXISTING CLIENTS Recruiting administration Not available Automated interface to leading job boards (Monster, etc.) Not available Prebuilt workflow and rules for administration of onboarding Delivered as part of base system ●●● Electronic signature support for agents/onboarding Not available Contract administration Delivered as part of base system ● User-defined producer authority rules management (lines of business allowed, Available through configuration by ●●● C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 14 suspension, no new business, etc.) a nontechnical business user Automated licensing renewal Available through configuration by a nontechnical business user ●●● Automated background investigation (ordering and results) Delivered as part of base system ●● Administration of awards, honors, contests and recognition programs Available through configuration by a nontechnical business user ●●● Administration of training requirements for producers Delivered as part of base system ●●● Producer examination tracking Delivered as part of base system ●●● Tracking of errors and omissions coverage Delivered as part of base system ●●● Agent self-service portal (commission inquiry, contest standings, production metrics) Delivered as part of base system ● Agent dispute tracking and management Delivered as part of base system ● Lead management Delivered as part of base system (Lead tracking is available. Lead Management is in roadmap and will be available by March 2014) ● Source: Vendor RFI Key: ● = 0–33%; ●● = 34–66%; ●●● = 67–100% Solution allows for defining and computing of multiple awards, honors, contests, and recognition programs for all channels for various durations. Prebuilt integrations are largely accomplished as base offering. Usage as reported by C2L BIZ Solutions among existing clients is high. Table 8: C2L BIZ Solutions - SymbioSys - Distribution Management System: Prebuilt Integration FEATURE STATUS USE AMONG EXISTING CLIENTS Prebuilt interface(s) with social networks Not available Electronic Funds Transfer (EFT) with external entities for fee processing Delivered as part of base system (through third party receipting system) ●●● Real time interface with country's producer/agent database Delivered as part of base system ●●● Prebuilt interface(s) to export and import agent demographic data, appointment and termination information using 3rd party vendors Not available Automated updating of system to ensure compliance with regulations regarding license, appointment and registration rules Delivered as part of base system ●●● C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 15 Number of countries interfaced with for producer management (appointments, terminations, licensing, onboarding, general maintenance) 0-5 ●●● Source: Vendor RFI Key: ●= 0–33%; ●● = 34–66%; ●●● = 67–100% SymbioSys uses a proprietary business rule engine called SymbioSys Rule engine. The system has the set of vocabulary based on which the compensation rules can be defined. SymbioSys has a built-in workflow tool that provides ability to configure workflow, rules pertaining to process management and for escalation management. The process flow is defined by using an Excel sheet driven interface. Thanks to its built-in workflow tool, SymbioSys allows for backdated movements with commission wind back/ forward to old/ new agent. Table 9: C2L BIZ Solutions - SymbioSys - Distribution Management System: Business Rules and Workflow FEATURE STATUS USE AMONG EXISTING CLIENTS Workflow Management (a visual tool set to design, execute, and monitor workflows— without changing core code) Available through programmers (e.g., adding/modifying the solution’s code base) ●●● Workflow Management graphic design environment, with automated code generation Available through programmers (e.g., adding/modifying the solution’s code base) ●●● Workflow rules repository that is searchable and version controlled Available through configuration by a nontechnical business user ●●● Automated workflow alerts (bottlenecks, past due tasks, etc.) Available through configuration by a nontechnical business user ● Manager-level reports/audit/inquiry capability by staff person Delivered as part of base system ● Manager-level reports/audit/inquiry capability by work group Delivered as part of base system ●●● Business Rules Management (design and execute, externalized from core code). If an external package, please indicate vendor in comments. Delivered as part of base system ●●● Business rules repository that is searchable, version controlled Delivered as part of base system ●●● Prebuilt library of compensation rules components Delivered as part of base system ●●● Source: Vendor RFI Key: ● = 0–33%; ●● = 34–66%; ●●● = 67–100% C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 16 USABILITY, ANALYTICS AND DOCUMENT MANAGEMENT SymbioSys provides some user-friendly usability features for end users as well as configuration users. For example: The design of the interface for configuration users (usually nontechnical business users) allows quick navigation to different parts of the application. At the top of the screen there are tabs and drop-down menus. Users are able to open multiple menus. Under each menu there are more tabs that categorize information. There are hyperlinks to click for detailed information. SymbioSys provides an intuitive graphical view of hierarchy. Workflow folders displayed as per user privilege. Solution provides for a static portal where a producer can enquire about the commission statements, premium due listing, contest ranking, performance tracking etc. Dashboards are available to get complete view of activity status, pending activities, etc. Document management is available through integration with third party document management system. Business intelligence and analytics function and management reporting dashboard are available but have not been implemented. The level of maintenance performed in business areas in reference accounts is high. The client Celent surveyed reported that users create and maintain 100% of hierarchy management, commission rates and rules, and special incentive plan; 75% of the total work effort for “create and change workflow rules” is accomplished by non-IT staff. Based on this feedback, it appears that SymbioSys can be business-directed if an insurer so chooses. Table 10: C2L BIZ Solutions - SymbioSys - Distribution Management System: Analytics and Document Management FEATURE STATUS USE AMONG EXISTING CLIENTS Business intelligence and analytics Delivered as part of base system Management reporting dashboard Delivered as part of base system Management and financial reporting data store Not available End user performed modeling (what-if analysis) on compensation components, compensation programs and hierarchies Not available User-defined ad hoc reporting Not available Electronic document management (insurer can customize paperwork for onboarding, licensing forms, etc.) Not available Forms and correspondence library with basic document management functionality Not available Electronic document management (insurer can customize commission statements) Not available C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 17 Support of ACORD producer forms Not available Source: Vendor RFI Key: ● = 0–33%; ●● = 34–66%; ●●● = 67–100% TECHNOLOGY Technology options for SymbioSys are listed in Table 11. Table 11: C2L BIZ Solutions - SymbioSys - Distribution Management System Options CODE BASE Features/functions/screens for everyday business users 100% Java Configuration and Development 100% Java OPERATING SYSTEMS Preferred Options Preferred option AND in production: Windows Preferred option NOT in production: Unix, Linux for z and other Linux Additional Options N/A INTERFACES Internal Business User 100% browser-based (HTML) 100% browser-based (HTML with Ajax) 100% browser-based (Other Rich Internet Application): As part of Web Based interface we are using some Rich Internet controls for better UI controls Configuration and Development 100% browser-based (HTML): 100% Web Based UI for configuration 100% browser-based (Other Rich Internet Application) Other: For Developers to customer the code, we user Eclipse as the IDE DATABASES Preferred Option Preferred option AND in production: Microsoft SQL Server Preferred option NOT in production: Oracle, DB2/UDB Additional Options N/A Source: Vendor RFI As a part of overall architecture, SymbioSys has mobile framework based on MEAP technology. Currently C2L BIZ Solutions has developed sales tools for agents on mobile platform that covers Sales Collateral, Lead tracking, Sales illustration, e-App, etc. The data model is proprietary. To extend Data Model, insurer’s technical staff can use standard DB tools. However, this is only required at integration layer. C2L BIZ Solutions mentioned that at the Integration layer level, they have also created extensive slots to C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 18 cater to most requirements for life, health, and general insurance business, and hence request for schema change is minimal. Once the data model at the integration layer is extended and new data vocabulary for rules is created, the entire rule configuration can be done by the business users using the Configuration UI. SymbioSys supports multicurrency as well as multilanguage. Multilanguage/multicurrency can be supported on a single instance. For the largest deployment, SymbioSys is used by 25,000 users with US$155 million premium billed annually. IMPLEMENTATION AND COSTS A typical implementation of SymbioSys involves a team of six to ten people. A typical split among C2L BIZ employees and the insurer’s employees is 65:35. The average time from project initiation to get the first line of insurance in live use is between four and six months, with subsequent lines also taking four to six months. C2L BIZ typically does not work with third parties for implementations, but may do so in future. The main cost in the first year comes from initial installation and customization, which accounts for 69% of total cost. The remainder is split between software license (24%), annual maintenance (5%), and training (2%). C2L BIZ offers perpetual license and SaaS model, and do not have any preferred option. C2L BIZ is willing to get into Risk - Reward model with clearly defined responsibility and accountability. The license fee can be based on number of functional components/modules, number of lines of business, or a flat fee. Client references were life and annuity insurers. Deep domain knowledge, understanding of insurance in different markets, flexible, comprehensive and futuristic solution, commitment to outcomes, and “easy to deal with” were identified as specific strengths. Reference feedback on implementation and service was high across the board. Figure 2: C2L BIZ Solutions - SymbioSys - Distribution Management System: Software Implementation and Service Rating Source: Reference client feedback form C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 19 For a typical single licensed insurance company with eight lines of business, producing annual premium of US$250 million, the total cost including license, implementation, and maintenance would be in the range of US $400,000 and $800,000, with license fees costing around US $100,000 to $300,000. For a typical insurance holding company with four subcompanies, writing in five countries with annual premium of US$2.5 billion, a larger fee between US$1.5 million and $3.75 million would be charged in the first year, with license fees costing between US$500,000 and $750,000. But all above cost is depending on country and integration complexity. Assuming the first year is focused on implementation of SymbioSys, the year two cost of maintenance is typically 20% of the license fee. SUMMARY SymbioSys is a new solution developed in 2011 and 2012. In a short period, it already has a live client and clients in implementation. It is a focused distribution management solution with strong hierarchy and commissioning as well as performance management features. Its modern technology, easy to use interface, and capability to configure all distribution channels and their rules in a single system with configurable workflow make it a good candidate for investigation by insurers. C h a p te r: C 2 L B IZ S o lu ti o n s : S y m b io S y s - D is tr ib u ti o n M a n a g e m e n t S y s te m 20 C h a p te r: L e v e ra g in g C e le n t’ s E x p e rt is e 21 LEVERAGING CELENT’S EXPERTISE If you found this report valuable, you might consider engaging with Celent for custom analysis and research. Our collective experience and the knowledge we gained while working on this report can help you streamline the creation, refinement, or execution of your strategies. SUPPORT FOR FINANCIAL INSTITUTIONS Typical projects we support related to distribution management include: Vendor short listing and selection. We perform discovery specific to you and your business to better understand your unique needs. We then create and administer a custom RFI to selected vendors to assist you in making rapid and accurate vendor choices. Business practice evaluations. We spend time evaluating your business processes. Based on our knowledge of the market, we identify potential process or technology constraints and provide clear insights that will help you implement industry best practices. IT and business strategy creation. We collect perspectives from your executive team, your front line business and IT staff, and your customers. We then analyze your current position, institutional capabilities, and technology against your goals. If necessary, we help you reformulate your technology and business plans to address short-term and long- term needs. SUPPORT FOR VENDORS We provide services that help you refine your product and service offerings. Examples include: Product and service strategy evaluation. We help you assess your market position in terms of functionality, technology, and services. Our strategy workshops will help you target the right customers and map your offerings to their needs. Market messaging and collateral review. Based on our extensive experience with your potential clients, we assess your marketing and sales materials—including your website and any collateral. C h a p te r: R e la te d C e le n t R e s e a rc h 22 RELATED CELENT RESEARCH Property and Casualty Insurance E-Business in Asia November 2012 Life Insurance E-Business in Asia September 2012 Deal Trends in Property and Casualty Policy Administration Solutions: 2012 Asia-Pacific Edition July 2012 2012 Asia-Pacific Insurance CIO Survey: The Year Ahead July 2012 North American Insurance Distribution Management Systems June 2012 Deal Trends in Life, Pensions, and Annuities Policy Administration Solutions: 2012 Asia- Pacific Edition May 2012 Asia-Pacific Life/Annuity Illustration Systems 2012 May 2012 Asia-Pacific Policy Administration Systems 2012: Life and Pension ABCD Vendor View February 2012 Asia-Pacific Policy Administration Systems 2012: Property and Casualty ABCD Vendor View January 2012 Celent Model Insurer Asia 2012 January 2012 Copyright Notice Prepared by Celent, a division of Oliver Wyman, Inc. Copyright © 2013 Celent, a division of Oliver Wyman, Inc. All rights reserved. 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