MAY 2018 Digital Ready Framework

Transcription

1

2 MAY 2018 Digital Ready Framework Transformation and Growth in Insurance

3 Digital Ready in Insurance Digital Ready A MuleSoft Enabled Framework for Transformation and Growth in Insurance ABSTRACT The insurance industry is rapidly transforming to drive greater efficiencies and to better meet customer expectations for an enhanced omni-channel experience. In this session, two companies discuss how their digital transformation journey was enabled by Deloitte Consulting and MuleSoft. SE2 modernizes its Aurum platform to become a digital, end-to-end life and annuity insurance BPaaS player, and builds its API-based service solutions to not just provide digital services, but to also build a new business model. 3 Copyright 2018 Deloitte Development LLC. All rights reserved. Pekin Insurance realizes its cloud first and digital strategy by modernizing the technology stack to support business growth and profitability, while simplifying agent experience.

4 Today s Speakers Thiru Sivasubramanian SE2 VP, Architecture & Technology Strategy Doug Fauth Pekin Insurance Director, Delivery Management Office Rahul Basu Deloitte Consulting LLP Senior Manager, Insurance Technology Sukhranjanjit Singh Deloitte Consulting LLP Manager, Insurance Technology 4 Copyright 2018 Deloitte Development LLC. All rights reserved.

5 Drivers for Digital Transformation Digital Ready A MuleSoft Enabled Framework for Transformation and Growth in Insurance Regulation New industry regulations mandating transformations such as: - IFRS9 - IFRS 17 - DOL Rules Automation Need for transformation due to advances in: - Robotic Process Automation (RPA) - Artificial Intelligence (AI) Standardization Workflow standardization to enable: - Underwriting Process - Risk Analysis - Cost Reduction Disruption Innovations driving transformation: - Blockchain - Omni-channel - Customer experience 5 Copyright 2018 Deloitte Development LLC. All rights reserved.

6 Current Need in the Market Complex Insurance Ecosystems Insurance heart of the business systems - current state architecture is a complex ecosystem consisting of a mix of legacy and new systems. It is very difficult to build and support some of the new capabilities without modernizing or rewiring some of this backend architecture LEGACY SYSTEMS AND PROCESSES 6 Copyright 2018 Deloitte Development LLC. All rights reserved. HAIRBALL ARCHITECTURE

7 Enabling Solutions Powered by Deloitte and MuleSoft Leveraging Deloitte Consulting s methods, standard SOA processes and accelerators in combination with MuleSoft s leading technology solutions enabled powerful digital transformation programs at SE2 and Pekin Insurance. Case Study 1: SE2 Spectrum Digital Integration Platform + Case Study 2: Pekin Insurance Virtual Overall Transformation (PIVOT) Program 7 Copyright 2018 Deloitte Development LLC. All rights reserved.

8 CASE STUDY 1: SE2 SPECTRUM SE2, an Eldridge Industries portfolio company, is an award-winning and leading Insurance technology and Business Process as a Service (BPaaS) company focused on the life and annuity industry. 8 Copyright 2018 Deloitte Development LLC. All rights reserved.

9 SE2 Spectrum Digital Integration Platform Spectrum is the digital backbone of SE2 s AURUM, an advanced and comprehensive Life & Annuity Insurance platform Vision High Level Conceptual Architecture SPECTRUM adheres to architectural principles in providing a scalable and robust digital integration framework. It would help in enabling an Open Architecture with integration through SE2 s Digital Life and Annuity APIs. Web IVR Call Center Portal SOE Interfaces Workflow Mgmt Others Architecture Enhancements Spectrum leverages an industry standard API Gateway, ESB and ETL solution as its central component. This is accompanied by a well defined Governance and Framework layer. Services & APIs are enabled on this reference architecture in an incremental manner to support different business capabilities. Integration between the SOE / SOR is build to enable the defined capabilities SOR Policy Admin Admin Agent Mgmt Others Core Applications Billing Robotics Business Services Transformation Event Messaging Business Integration Layer Metadata Object Rational Mapping API Service Management ESB Orchestration Data Access and Management Layer Interoperability Layers (ESB) Data Orchestration Integration Connectors Credential Vault Reports BRMS Services Notification Services Workflow Services Transaction Management AI CEP Cross cutting utilities Audit Caching Logging Validation Security Ops + Monitoring Correspondance Preliminary Validation (ETL Pre Processing) Data Standardization and Transformation SGK Generation CDC Data Profiling and Quality Enabling Tech Others Enterprise Service Bus, API Gateway MuleSoft Data Dictionary Data Modeling Persistence Layer Data Mapping Reference Data Transactional Data Master Data Lake/ Data Data Warehouse Analytics Layer Analytics Middleware Technologies ActiveMQ, Redis Cache ETL 9 Copyright 2018 Deloitte Development LLC. All rights reserved. SOE = System of Engagement SOR = System of Record ICS = Informatica Cloud Solution

10 SE2 Spectrum The Benefits Spectrum enabled a new business model in the Digital Market Business Benefits Architecture Enhancements Key Dimensions of Benefit Realization Accelerated time-tomarket Increased operational efficiency Enabled self-service capabilities Enhanced scale and predictability Low/no-touch digital engagement Enhanced configuration-driven approach Single version of the truth Enhanced data services Componentized API-led architecture (MuleSoft API Gateway) Real-time (MuleSoft ESB EE) Increased batch cycle efficiencies SOA and Data governance Utilizes MuleSoft EE ESB and ActiveMQ for the Application Integration platform Composable, across Internal and External Partner/ Client Eco systems Client-centric business services on an evolving integrated digital framework Seamlessly integrated using industry standards Standardized architecture standards for rapid future deployments Open architecture utilizing Industry Standard canonical data model (where applicable) Enhances customer experience in a scalable and predictable environment 10 Copyright 2018 Deloitte Development LLC. All rights reserved.

11 SE2 Spectrum Implementation Phases Installation and Governance Frameworks Development Factory Delivery Models KEY ACTIVITIES Set up governance (assessment, planning and roll-out) Application Integration Infrastructure, MuleSoft and other Integration services setup Setup Dev tools SOA Governance Data Integration Informatica Setup Creation of Business Glossary for Core Identify Platform and Environment requirements Business Glossary Data Governance Planning and architectural review to finalize key framework components Application Integration Design and build new business and framework services Data Integration Design and build new ETL mappings Build data quality components Update logical/physical model and business/data glossary Application Integration Requirement gathering, build for business services Rollout Support Move into Run Support Data Integration Requirement gathering, build for data business services Rollout Support Move into Run Support S Policy O Admin R Admin Agent Mgmt Others Core Applicati ons Billing Correspondanc e Others Key Dimensions of Benefit Realization Web Robotics Business Services Transformation IVR API Service Management Call Center Portal S O E Interfac es Integration Connectors Credential ESB Event Vault Orchestration Messaging Interoperability Layers Business Integration (ESB) Layer 1 Object Rational Data Metadata Reports Mapping Orchestration Data Access and Management Layer 0 Preliminary Validation Data Standardization SGK Generation CDC (ETL Pre Processing) and Transformation Data Reference Transactional Data Dictionary Data Modeling Mapping Data Data Persistence 1 Layer Workflo w Mgmt BRMS Services 0 1 Notification Services Workflow Services Transaction Management Others Data Profiling and Quality Master Data Analytics Layer AI CEP Data Lake/ Data Warehouse Cross cutting utilities Audit Caching Validation Security Ops + Monitorin g Analytics Logging 1 11 Copyright 2018 Deloitte Development LLC. All rights reserved.

12 SE2 Spectrum Roadmap Planning Guiding principles Prioritization factors Prioritize real-time over batch processing Ensure high availability and a 24/7 capability Improve SLAs and deliver greater scalability + Business Growth 1 2 Drivers Organizational Maturity Improve predictability and repeatability in conversions Security for SE2 personnel, clients, and policy owners Guiding Principles Prioritization Factors 3 Project Dependencies 4 Business Continuity Implement an adaptive delivery model (factory model) ROADMAP Enable bimodal organization for predictability and innovation Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 Month 13 R1: Setup framework R0 Pilot Factory Delivery Model R2.1 R2.2 R Copyright 2018 Deloitte Development LLC. All rights reserved. SOE = System of Engagement SOR = System of Record ICS = Informatica Cloud Solution

13 CASE STUDY 2: PEKIN PIVOT Pekin Insurance provides a variety of insurance products in life, health, annuity, property and casualty insurance for individuals and businesses in various states across the U.S. VISION STATEMENT Our vision is to set the standard of excellence among insurance providers by being innovative, being financially strong, and exceeding customer expectations. We will attract and retain the very best employees and agents to help us achieve this goal. 13 Copyright 2018 Deloitte Development LLC. All rights reserved.

14 Pekin PIVOT Program The Pekin Insurance Virtual Overall Transformation (PIVOT) will benefit our Personal & Commercial businesses and lay future foundation for the Life Company. GROWTH EFFICIENCY PROFITABILITY DIGITAL Core Systems Modernize legacy systems to support PL & CL core business functions for Underwriting, Policy Administration, Billing, Claims & Document Generation & Printing Reporting & Analytics Enhance our ability to convert data into business insights and drive better underwriting decisions through predictive modeling Digital Capability Empower agents, insureds, and employees with better tools for electronic transactions, self-service, and paperless communication 14 Copyright 2018 Deloitte Development LLC. All rights reserved.

15 Pekin PIVOT Program Supporting business goals through overall technology transformation. Vision Target State Conceptual Architecture Business driven goals support by robust and agile technology platform. New digital framework supported by APIs and microservices that increased the usability for agents and users. Architecture Enhancements Industry leading policy, claims and billing system, a robust ESB along with new data warehouse forming the key component of a new platform. A new digital layer connected with the underlying data and policy admin systems through micro-services and APIs. A nimble and agile ESB allowing to gain the benefits of leveraging industry standards, enhances security (API gateway) and reusability (APIs and micro-services). Along with modernized Architectural and Governance standards Enabling Tech Enterprise Service Bus, API Gateway MuleSoft Insurance COTS: Guidewire (entire suite) ETL - SSIS 15 Copyright 2018 Deloitte Development LLC. All rights reserved.

16 Key Design Principles Design principles to reduce complexity and making it easier for people to follow the rules Cloud architecture Scalability through design Digitally enabled Nimble & Flexible API Economy Driving a microservices architecture DevOps, compress delivery cycles and adopt experiment and learn mentalities Data Analytics, using proper insights and reporting to take informed decisions Governance, Keeping check Component based architecture, business agility, simplify to succeed 16 Copyright 2018 Deloitte Development LLC. All rights reserved.

17 Moving Forward Output based planning for ongoing and future projects Strategic Planning PIVOT Future Projects Identify common themes, prioritized attributes and desired capabilities Leverage planning outcome to take informed decision and potential Continue to build on the platform and architecture layout delivered by the PIVOT Deliverables Phases Align on target business goals, capabilities, processes Layout a plan to support business goals via the technology platform and service model Business driven priorities Clear Goals Business and technology alignment functionality prioritization Setup guidelines upfront Agile supporting DevOps processes Add governance to share continuous progress and outcome change and adjust as required 100+ new APIs and microservices Configured a new policy, billing, claims, doc repository and document creation New enhanced Digital front ends Cloud and DEVOPS New Data analytics and reporting program Keep improving and adjusting Double down on governance to keep guidelines updated and check on the processes Agent and Customer Experience Proven and easy to use technology platform Providing an enhanced customer and agent experience Iteratively update the guidelines and processes framework 17 Copyright 2018 Deloitte Development LLC. All rights reserved. Increased security

18 Progress so far We have measurable success in multiple areas Capabilities Maturity & Degree of Change Capability Enhancement Cloud enablement and DevOps LOW HIGH New on Cloud or Cloud ready DevOps has increased agility and ability to review and re-adjust faster Digital access Maturity and ease of use of the digital channels by users and agents Governance New Governance strategy and guidelines have increased collaboration and promotes reuse Business processes Focus on future goals and simplified processes, ease to change and adopt 3 rd Party Data Integration Connectivity to suite of third-party integrations to be able to pre-fill, validate and interpret data, especially unstructured data and non-common variables Enhanced Security Additional layer of security through multiple new tools and best practices (e.g. API gateway) Enhanced Analytics and Reporting New data and reporting systems and seamless integration with them enhance the data and analytics capabilities to provide the ability to be proactive vs. reactive Current Maturity and degree of change, from when the transformation started, 18 Copyright 2018 Deloitte Development LLC. All rights reserved. Starting point before the transformation journey

19 Lessons Learned Accelerators and SOA process standards Building a reference framework and connecting with Accord standards Building a reference framework that worked with COTS products such as Guidewire Enabling governance, monitoring (e.g. measuring KPIs, services up or down) and security Role of MuleSoft and Deloitte process / accelerators in digital transformations for insurance 19 Copyright 2018 Deloitte Development LLC. All rights reserved.

20 Role of MuleSoft and Deloitte A few examples of MuleSoft and Deloitte-driven efficiencies and benefits AREA IMPACT BENEFITS Reusability Using same API across multiple interfaces Problem Statement Same API may be leveraged across multiple integrations while requiring different set of data inputs. Creating multiple versions of the same or similar service to maintainability issues. Solution Built canonical data models based set of similar requirements and logical pairing of services, while keeping the core API constant. Ease of maintenance Common Framework Unique identifiers for traceability (Logging) Problem Statement Tracing logs in an environment with concurrent traffic flow and application clustering is challenging Solution Built various framework services, now used across the enterprise. Logging framework should be expanded to include thread ID with every log printed Improved traceability ESB Layer Routing Routing to different environments File Validations Automating flat file validations Problem Statement Limited dev and test environment for some external and internal systems and can only point to a single environment at a time. This causes issues when multiple teams utilizing multiple environments require concurrent access to the same systems. Solution Implement routing to proper environments at the ESB layer based on unique identifiers / time frames Problem Statement While validating integrations involving large complex flat files, lots of manual human effort is put in for unit / module testing. This causes wastage of precious time with the possibility of injection of human error. Solution Build microservices for validations of such file integrations Reduced waste and helped expedite development Improved efficiency and accuracy 20 Copyright 2018 Deloitte Development LLC. All rights reserved.

21 Role of MuleSoft and Deloitte (cont.) A few examples of MuleSoft and Deloitte-driven efficiencies and benefits AREA IMPACT BENEFITS Integrated Code Review MUnit Problem Statement Not following coding standards and no test automation leads to a lot of manual effort and re-work. Solution MUnit is a Mule application testing framework that allows you to easily build automated tests for your integrations and APIs. Increased automation Security Using API Getaway Problem Statement Tracing logs in an environment with concurrent traffic flow and application clustering is challenging Solution Built various framework services, now used across the enterprise. Logging framework should be expanded to include thread ID with every log printed Improved traceability Monitoring KPIs and Service health Problem Statement Limited ability to measure service throughput and service health. This leads to working on issues after they arise and being pressed to fix them in less time. Solution API manager allows access to real-time data service health and performance data Ability to be proactive Common Framework Error Handling Problem Statement No common error handing mechanism. This causes wastage of precious time with no accurate mechanism to identify the problem area and root cause. Solution Build common framework for error an exception handling that can be leveraged across the enterprise with the flexibility to enhance as per specific business area requirements Increased reusability and consistency 21 Copyright 2018 Deloitte Development LLC. All rights reserved.

22 Questions?

23 Thank you!