Solution Overview Transform your life and annuities business
Reduce operations expenses with Cognizant s business process as a service offering. Solution Overview: Is your legacy a burden rather than an asset? Life and annuity insurers are faced with a growing portfolio of legacy core applications segmented by business line and tied together through a complex network of systems interfaces running on multiple platforms. This dependence on outdated systems leads to high costs for infrastructure, operations, support and maintenance activities. As a carrier, you are driven by the need to support ever-changing business requirements and to enable your business to enter new markets and launch new products. In addition to market-driven concerns, reducing operations costs has become a key imperative for insurers, allowing you to reinvest in the business to drive growth. How would you manage your existing platforms to provide scale and reduce your operational cost? These trends are forcing your focus away from business growth, risk containment and profitable returns. Regulation in markets adds to the pressure by requiring you to set aside greater levels of capital to back your risks. You need to establish a competitive edge to attract and retain customers. But how can you offer innovative products, market them quickly and provide superior customer experience without affecting the focus on managing your core business? 2 Transform your life and annuities business
Cognizant LifeAdmin Core TM can provide the scale and flexibility to support your new business while keeping your costs down. The solution leverages a best-in-class platform, domain-led expansive business process services in a Cognizant cloud-based infrastructure to help you achieve your strategic business objectives by focusing on your core business. The business advantages include: Providing business agility and simplifying business operations through a modern and configurable technology platform Reducing overhead with operational process optimization through industry-standard best practices Reducing total cost of ownership through single integrated pricing and a variable cost model Improving customer interactions and brand value via a broad set of integrated digital assets Eliminating capital expenditure thanks to a cloud-based, pay-as-you-go delivery model Enabling your organization to focus on business issues and less on technology REDUCE CAPITAL EXPENDITURE Legacy systems represent a major source of costs for infrastructure, operations, and maintenance. Hardware leases, operating system software licenses, and staff take up the majority of the IT budget. Legacy systems go through upgrade cycles every three to four years. Often the increased costs include levels of processing capacity beyond the current needs. A smarter idea is to let us manage all the hardware and software, while paying only for what you use. That is why the Cognizant LifeAdmin Core is delivered on a business platform as a service basis with non-linear pricing based on number of policies administered. In other words, you pay in a way that significantly benefits cash flow and operating expense budget. SIMPLIFY BUSINESS OPERATIONS The Cognizant LifeAdmin Core is a rules-based policy administration system that provides full record keeping and support for all policy lifecycle transactions. The rules-driven engine enables system flexibility in achieving faster time to market, ease of maintenance and upgrades, and ease of integration. The service-oriented architecture provides enhanced capabilities for real-time processing and integrated business process management to help increase automation. The solution lets you provide real-time policy servicing for customers and sales channels throughout the policy lifecycle, increasing retention and loyalty. It also helps you reduce risk and improve compliance, while better managing the business to optimize performance. The system can be configured to leverage components sourced from best-in-class technology through strategic alliances with leading providers. The platform can be easily configured to interact with your IT landscape and other internal and external partners. REDUCE RISK IN CONVERSION Insurance carriers opting for the transformation solutions are always concerned about the risk involved in ensuring accurate movement of data to the modern platform. Cognizant s LifeAdmin Core leverages Cognizant s policy conversion framework enriched with experience from past conversions that helps minimize the risk of conversion, optimize the cost of conversion and achieve completion within an optimal timeframe. The robust framework includes handbooks, templates, knowledge repository, accelerators and tool-kits for conversion of blocks of business to platform. This provides overall automation of at least 30-40% for any conversion. Cognizant has leveraged the framework consistently in several large policy admin system consolidations. The overall framework now positions Cognizant strongly as a market leader in performing PAS consolidation faster, cheaper and better than product vendors or other system integrators. Transform your life and annuities business 3
REDUCE OPERATIONAL OVERHEADS Differentiation starts with nimble operations. That means adapting quickly to changing technology, using analytics to make quicker and better decisions, and keeping pace with changes in your customer demographics and resultant sales and distribution models. Agile operations also mean adaptable business processes that are managed efficiently and can flex when volume spikes or shrinks. Our life and annuity operations help you gain the competitive edge you need. We manage process capabilities so you can focus on revenue-generating activities such as product development, sales, and distribution, and adapt quickly to market changes. Efficiency is critical, but so is customer experience. We manage the full range of business processes, from new business underwriting, policy administration, claims and billing for simple and complex financial products. Not only do we reduce costs and modernize processes, we help align your business and operating models with process optimization. We are a fully licensed, third-party administrator in the United States, where required. End-to-end business processing gives you the opportunity to reduce costs while improving efficiency and customer service. This solution employs best-in-class life and annuity business processes, from new business to policy administration and claims services, supported by modern technology across the value chain. As part of an end-to-end services offering, we help you contractually measure and achieve positive movement on key metrics to transform your business. We exceed the contractual obligations for key service level agreements such as average handling time and customer satisfaction, while lowering your operational costs. FOCUS ON GROWTH Cognizant s LifeAdmin Core solution will support your business growth in a number of ways. The primary focus is to give you reduced total cost of ownership, a reduction in IT infrastructure costs, and standardized, efficient, and optimized processes. Transferring end-to-end business processing services frees up time for your internal resources to focus on growth. Use of predictive analytics also enables you to transform your business in the areas of churn prediction, segmentation of customers/agents, profitability improvement, and actuarial valuation. Cross-selling and up-selling can be achieved more efficiently and effectively, with better analytics and customer communication tools. The Cognizant LifeAdmin Core gives you a foundation to increase operational efficiency through automated workflows, increased customer self-service, and implementation of digital assets. The integrated business process management software makes it easy to implement rules that automate standardized and exception-defined processes. 4 Transform your life and annuities business
AVOID TECHNOLOGY OBSOLESCENCE Continuing to rely on legacy infrastructure can increase the risk of failure, performance degradation, and end of support, not to mention missing out on the flexibility to deliver new products and services. With the Cognizant s LifeAdmin Core, on the other hand, you can enjoy the reliability, flexibility, and performance of best-in-breed, continuously updated technology platforms tended by one of the most admired IT services companies in the world. Cognizant s core platform provides end-to-end capabilities to support all elements within the insurance lifecycle. This modern technology solution will free you from the traditional challenges inherent in maintaining legacy systems. Value is further enhanced with our proprietary implementation of application programming interfaces to third-party software, services, and business process services such as mail intake, document scanning and indexing, call center support, and print and mail distribution. ENJOY VARIABLE PRICING Cognizant s LifeAdmin Core is designed to provide multiple commercial options to convert fixed costs into a variable cost basis, such as payment on per-policy basis with service-level agreements based on outcomes. By leveraging an end-to-end business processing solution, you can reduce the total cost of ownership while changing to a predictive pricing model with no compromise on quality. IMPROVE CUSTOMER MANAGEMENT Legacy platforms tend to silo functional systems by separate policy, billing, and claims databases that are poorly connected in a common operational data store. This makes for an uncomfortable customer journey and lost opportunities for cross-selling and up-selling. The Cognizant s LifeAdmin Core, however, relies on a single database for all operations. This provides a 360-degree view of customers, the ability to track service delivery across all interactions, the capacity to understand the lifetime value of key business segments, the tools to refine the product and related pricing of those segments, and other key distribution, underwriting, and claims analytics. Data ceases to be a problem and becomes an asset. Cognizant s LifeAdmin Core solution provides greater agility and enhanced capabilities while streamlining processes. Modern technology provides system flexibility in achieving faster time to market, ease of maintenance and upgrades, and ease of integration. Cognizant offers next generation business process as a service (BPaaS) capabilities in a Cognizant cloud-based infrastructure integrated with business operations. Modern technology with solution accelerators supported by a team of platform and conversion specialists makes businesses run better. The solution also provides access to our rich social, mobile and analytics, to help you enable major business transformations. Transform your life and annuities business 5
LET S TALK Don t wait for the future of the insurance industry to overtake you. Learn more about the Cognizant LifeAdmin Core solution by contacting us now on LifeAdminCore@Cognizant.com. About Cognizant Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business process services, dedicated to helping the world s leading companies build stronger businesses. Headquartered in Teaneck, New Jersey (U.S.), Cognizant combines a passion for client satisfaction, technology innovation, deep industry and business process expertise, and a global, collaborative workforce that embodies the future of work. With over 100 development and delivery centers worldwide and approximately 244,300 employees as of June 30, 2016, Cognizant is a member of the NASDAQ-100, the S&P 500, the Forbes Global 2000, and the Fortune 500 and is ranked among the top performing and fastest growing companies in the world. Visit us online at www.cognizant.com or follow us on Twitter: Cognizant. World Headquarters 500 Frank W. Burr Blvd. Teaneck, NJ 07666 USA Phone: +1 201 801 0233 Fax: +1 201 801 0243 Toll Free: +1 888 937 3277 European Headquarters 1 Kingdom Street Paddington Central London W2 6BD England Phone: +44 (0) 20 7297 7600 Fax: +44 (0) 20 7121 0102 India Operations Headquarters #5/535 Old Mahabalipuram Road Okkiyam Pettai, Thoraipakkam Chennai, 600 096 India Phone: +91 (0) 44 4209 6000 Fax: +91 (0) 44 4209 6060 Copyright 2016, Cognizant. All rights reserved. No part of this document may be reproduced, stored in a retrieval system, transmitted in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the express written permission from Cognizant. The information contained herein is subject to change without notice. All other trademarks mentioned herein are the property of their respective owners. 20260/rotl/8-16