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Introducing Oracle Insurance
Chuck Johnston
Vice President Strategy and Alliances
Insurance Global Business Unit
The following is intended to outline our general
product direction. It is intended for information
purposes only, and may not be incorporated into any
contract. It is not a commitment to deliver any
material, code, or functionality, and should not be
relied upon in making purchasing decisions.
The development, release, and timing of any
features or functionality described for Oracle’s
products remains at the sole discretion of Oracle.
Oracle Insurance
Oracle Insurance provides a complete, modern
insurance software solution, from technical
and business infrastructure to core insurance
processing.
• Includes sales, service, administration, and financials
within core insurance processing
• Supports more than 2,000 insurance customers
today
• Delivers next-generation, open, and standards-based
software
• Enables business transformation
• Supported by $2 billion R&D budget
• Boasts deep insurance domain expertise
20 of the top 20
Fortune 500
insurers
use Oracle
applications
Why Insurance?
Leading Business Trends
• Need for new product speed to market
• Achieve compliance with regulatory requirements
• Improve customer communications
• Optimize and innovate distribution management
• System consolidation / legacy migrations
• Acquisition opportunities
Oracle Insurance –
Product Vision & Strategy
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Oracle Insurance Vision and Strategy
Vision
Strategy
Oracle Insurance Solution Footprint
Oracle Services: Insurance Professional Service Team,
Education, 24 x 7 Support
Oracle Insurance Applications
Insurance
CRM
Insurance
Rating &
Illustration
New
Business
&
Underwriting
Desktop
Policy
Admin
Insurance
Billing
Insurance
Claims
ERP
Customer Communication Management: Applications, Industry Forms, Policy Issuance, Client
Communications, & Claims Correspondence
Insurance Data Exchange: Data Exchange between Carriers,
Distributors, & Service Providers
General Agency: BGA Office
Automation
Platform Solutions: MDM | Insurance BI Applications | Compliance | Enterprise Risk & Performance
Management
Integration & Collaboration: Insurance Application Integration and Architecture, Business Process Bus
Technology Foundation: Database, Fusion, BPEL, Security, etc
Oracle Insurance Policy Administration
Policy Administration
• Product Suite:
•
•
•
•
•
PAS v9.0
IllustrationServer v2.0
NBUW v2.0
UVServer v2.0
Rule Palette v1.+
• Architectural Considerations:
•
•
•
•
Leverage system constructs
Multi-language, Multi-currency
Multi-tenant, regional capabilities
Multiple technology stacks
• - Server based
• - Web 2.0 technologies
• - Standards based
Oracle Insurance Rating & Underwriting
Easy-to-use, Web-based rating, rules and underwriting system
that allows business users to perform elaborate and complex
rating and underwriting logic with unmatched accuracy
Key Features
Insurance
Rating &
UW
Differentiators
• Rules-based and designed for business users
•Business analyst can create, deploy and manage complex rates,
which improve speed-to-market
•Cut IT delays and free IT resources
• Web-based, built on SOA
•Flexible to integrate with legacy policy admin systems
Flexibility to support for all
major operating systems,
databases and platforms
Line of business agnostic
Rules and rating engine all
in one
•3rd party call outs (MVR, Clue, etc)
• Support for a single rating engine
•Ensure rating accuracy by consolidating systems
•Reduce inefficiencies by maintaining and testing rates in multiple
systems
• Versioning
•Facilitate multiple product versions
•Reduce time in creating new products
Open, standards-based
architecture allows easy
integration into existing
systems
Oracle Documaker
Customer Communication Management
Powerful publishing platform that automates enterprise-wide
design, production, and multi-channel distribution of a broad
array of customer-facing insurance documents
Key Features
Differentiators
• Robust design environment
•Allows tight integration between content, data and logic
Market leader, according to
Celent
•Fully-customizable forms
• Conversion tools
Widest breadth of CCM
solutions in the industry
•Preserve legacy investments
• Web-based solution
•Users can select templates and generate ad-hoc documents
• Lightweight, cost-efficient, service-centric approach
•Ease of use at the business user’s level
• Pre-packaged, pre-built, pre-implemented forms libraries
•Speeds time to market
• Integrates within insurance enterprise infrastructure
•Promotes straight through processing (quote, rate, bind, issue)
Most extensive insurance
run-time system and
components
Supports more platforms,
integration methods,
databases and print streams
than any other solution
Impact across the company –
CSR’s/End Users,
Underwriting, Marketing, IT, &
Production
Oracle Insurance Data
Exchange
Insurance Data Exchange
Electronic data hub for life and annuities that exchanges secure,
real-time data among carriers, agencies, and third parties,
enabling straight-through processing.
Key Features
• Centralized Internet Hub
•Eliminates disparate data feeds to and from multiple
vendors, partners and distributors
•Promotes straight-through processing
•Improves agent-carrier relationship and customer service
• Data aggregation and format translation
•Carrier, service provider, and agency data aggregated
regardless of format
•Speeds production time and ensures data accuracy
• Data accepted in multiple formats
•ACORD XMLife
•NAILBA
•Other
Differentiators
Largest, centralized data
exchange for life & annuities
Top 50 life underwriting companies
(carriers)
Millions of messages exchanged in
a year
Utilized by thousands of
independent life insurance
producers
Oracle Insurance Compliance
Forms Tracker
Platform Solutions: Compliance
Fully automates U.S. state filing preparation process, including research,
creation, assembly, submission and tracking.
Key Features
• Direct integration with SERFF
•Automates filing preparation process with two-way
communication
•Built-in PDF conversion for submission
• Centralized database of all filings
•Reduce redundant data entry
•Increased product integrity
Differentiators
Enables straight-through
processing by completely
automating U.S. state filing process
Only third-party software
integrated to SERFF
Supported by Oracle compliance
professionals to ensure latest filing
forms and regulations
• Maintains latest filing forms and regulations
•Increase efficiency with electronic access to forms
•Speed time to market with always-accurate forms
• Provides historical picture of filing preparation and status
•Accurately track all filings, preventing duplication or
omission
•Shows all DOI correspondence
Promotes self-service by allowing
other business units access
Oracle Insurance Product Roadmap Highlights
12 Months
1
New Releases for all Core Insurance Applications
Life Policy Administration System
Document Automation
• Deliver end-to-end insurance solutions, such
as:
• Improved usability
• Over 50 customer-driven
enhancements
• Integration to Oracle ECM
• Distribution Management (CRM,
Rating/UW, DA, & New Business)
Claims Management
• Policy Lifecycle Management (PAS, DA,
Billing, Financials)
• Enhanced Rules Palette capabilities
New Business & Illustrations
• NB platform
• Financial advisor desktop
Insbridge Rating & UW
• User productivity improvements
• JBOSS platform support for SoftRater
• Pre-defined ISO Rates
• LOB enhancements
Insurance Data Exchange
• Support for additional lines
Insurance Compliance
• SERFF Changes
• Integration to Document
Automation
Insurance BI
• Uptake of Oracle BI platform
P&C Policy Administration Application
• Deliver Next-gen P&C Policy Administration solution
3
1 Integrated Solution Sets
• Internationalization features
• UI redesign / Web 2.0 capabilities
2
12-24 Months
• Claims Management (Claims, DA,
Financials)
• “Insurance in a Box”
2 Life Straight-through Processing
• Integrated NB/UW application & PAS with
Insurance Data Exchange service for:
• Application Submission, Case Status
• Service Ordering
3 Health Insurance Administration
• Deliver Next-Generation Claims
adjudication solutions for Health Insurance
Expanded Insurance CRM/ERP Functionality
• Oracle Siebel 8.1.1Release, CRM OnDemand for Insurance
• Insurance-specific AR/AP/Cash Management modules
4 Global Solutions
• Internationalization features in core
insurance applications
Dealing with the Insurance Long Tail
Today’s Dilemma
Cost of Ownership
Cost
“The percentage of enterprise IT budget
committed to application integration is on
average 40% — and may rise to as much as 70%
in certain situations”.
Aberdeen
“It often takes up to three years for the
integrated software vendors to get to
functional parity with the point solution
vendors”.
Aberdeen
Business Value
Point Solutions
Monolithic Application
Functionality
Oracle’s Policy Lifecycle Solution
Business Value
CRM
New
Business
Policy
Admin.
Premium
Billing
Financials
Oracle Portfolio
TCO
Monolithic Application
Point Solutions
Oracle Insurance Application Architecture for
Policy Lifecycle Management
UW Desktop
Leads
Opportunities
Prospects
Sales Process
Rating
Illustrations
Insurance CRM
Policy
Administration
System
Premium Billing
Financials
Policy
Regulatory
Transactions
Bill Plan
Bill History
Collections
Financials
Taxation
Reserves
Illustrations
Rates / Quotes
Templates
Bundles
Oracle Enterprise Service Bus / BPM
Contact / Account
UW Case Mgmt.
Billing / Rates
AR / GL
Applications Integration Architecture
Opportunity
Product Def.
Product Updates
Adjustments
Assets, Reserves, Fees
Oracle Enterprise Service Bus / BPM
Customer
Master
IDX
Document
Automation
Enterprise
Data
Warehouse
3rd Party
& Legacy
Announcing Oracle Application Integration
Architecture (AIA): Insurance Foundation Pack
Adaptable integration solution for orchestrating agile, user-centric
business processes across the insurance enterprise applications
• Unify application
portfolio
• Join Oracle and nonOracle applications on a
robust, open, standardsbased platform
• Minimize integration
costs and risk
• Speed time to value with
pre-built insurance
business objects and
services
• Adapt business
processes to changing
business needs
• Optimize business
operations using
documented insurance
business processes
Industry Reference Model
Documented conceptual
business process
models, including:
• Distribution: Channel
Management, Marketing, Sales,
Service
• Core Operations: New Business,
Policy/Member Service, Incentive
Compensation, Billing, Claims,
Reinsurance
Oracle Insurance – Industry Model (Life, Health, P&C)
Enterprise Management
Enterprise Planning and Performance Management
Governance, Risk and Compliance
Operations
Product
Product
Development &
Management
Distribution
Channel
Management
Marketing
Sales
Service
Core Insurance
New Business
Policy/Member
Service
Incentive
Compensation
Billing
Claims
Care
Management
Reinsurance
(Healthcare only)
Financial
Control and
Reporting
Cash and
Treasury
Management
Asset Lifecycle
Management
Human Capital
Management
Procurement
Legal
Network
Management
(Healthcare only)
Operations Support
Compensation
Management
Enterprise Business Objects
Application independent
representation of
common insurance
objects:
• Claims, Policy (planned)
• Additional EBOs to support
premium billing & insurance
distribution
EBO
EBO
Policy
Claim
Oracle IRM for Insurance
• Covers all lines of
insurance: P&C, Life
& Health
• Completed L0 & L1
development of
Insurance IRM across
all core insurance
areas
• 25+ L1 BPM
diagrams completed
• Whitepaper
Document published
• L2 & L3 drill-downs in
progress for
Insurance P&C
Claims area
completed
Oracle Insurance Business Process Model
Insurance Foundation Pack – Claims
Focused Processes:
Verticalization of EBO & EBS to
support key Insurance business
processes:
•
Claims
•
Policy Lifecycle (Planned)
•
Distribution (Planned)
Insurance Foundation Pack
Industry Business Process Model
Customer Relations
Core Insurance
CRM
Claims
Targeted EBOs:
•
Claims - NEW
•
Customer Party
•
Disbursed Payment
•
Invoice
•
Payable Invoice
•
Receive Payment
EBOs/EBS
Corporate
Admin
Financials
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Financial Services Strategy Update
Greg Midtbo – Industry VP – Global Financial Services Business Unit
October 23, 2008
The Financial Services and Insurance
Global Business Units
• Dedicated Business Unit launched
in June’07
• Headquartered in New York City
• 12,000+ Employees
• 8,500 Customers
• 2,100 Partners
• 300 Products Built on Standard
Technology Stack
• #1 Enterprise Software Supplier in
Financial Services
Oracle in Financial Services
20 of the top 20 Global Banks
20 of the top 20 Insurance Companies
10 of the top 10 Securities Firms
5 of the top 5 Mutual Fund Companies
4 of the top 5 World Stock Exchanges
© 2008 Oracle Corporation – Proprietary and Confidential
25
Oracle’s Strategy
Complete Open Integrated
Complete
Open
Integrated
Comprehensive
Industry Portfolio
Standards-Based
Architecture
Designed to
Work Together
More Value
Less Complexity
More Choice
Less Risk
More Flexibility
Less Cost
© 2008 Oracle Corporation – Proprietary and Confidential
26
Oracle’s Financial Services Strategy
Oracle’s Strategy and Vision is based on the view that the
only way to bring a wide range of domain specific software
capabilities to market is through:
1 • Developing and acquiring the most complete set of “best of
breed” functional capabilities available from any one single
vendor
2 • Pre-integrating these “best of breed” solutions through process
based integration to reduce complexity and cost for the customer
3 • Standardising and converging over time the “integrated best of
breed” solutions onto a common, open technology architecture
4• Building an ecosystem of system integrators to complement our
own capabilities for platform lead implementations
© 2008 Oracle Corporation – Proprietary and Confidential
27
Oracle’s Financial Services Strategy
Oracle’s Strategy and Vision is based on the view that the
only way to bring a wide range of domain specific software
capabilities to market is through:
1 • Developing and acquiring the most complete set of “best of
breed” functional capabilities available from any one single
vendor
2 • Pre-integrating these “best of breed” solutions through process
based integration to reduce complexity and cost for the customer
3 • Standardising and converging over time the “integrated best of
breed” solutions onto a common, open technology architecture
4• Building an ecosystem of system integrators to complement our
own capabilities for platform lead implementations
© 2008 Oracle Corporation – Proprietary and Confidential
28
Why Integrated Best of Breed?
Integrated Best of Breed
Efficiency
•
•
•
•
Best of both worlds
Grid Computing Architecture
Service Oriented Architecture
Enterprise Information
Architecture
ERP Suites
• System Consolidation
• Focus on efficiency, not flexibility or agility
• Trade off of functionality for ease of integration
Point Solutions
• Standalone Applications
• Focus on getting data in
• Significant cost and complexity of integration
Legacy
Flexibility
© 2008 Oracle Corporation – Proprietary and Confidential
29
Oracle’s Investments to Address Key
Priorities for Financial Services Industry
Banking specific CRM capability
for the front office
Governance, Risk and Compliance
platform to address challenges facing
a FSI
Risk
&
Fin.
Mgmt
8%
Comprehensive behavior
detection platform for AML ,
broker & trading compliance
Delivers the visibility you
need to improve
performance & achieve
goals
Complete banking product suite for retail, consumer,
corporate, investment and asset management
Teller & Internet
banking applications
Customer
Insight
10%
Retail Delivery
17%
Comprehensive consumer lending
systems
Infrastructure
22%
Empowering institutions to
manage content for compliance
Providing high performance
databases for timely transaction
execution
Gartner Forecast: Banking, Worldwide, 2006-2009
Aug 2005
Product Development
17%
Treasury
Services
Back-Office/Ops
26%
Percentage of software spend
Improving banking performance
via greater business insight
Unlocking the full value
of you organization’s
workforce
Oracle Footprint: Banking and Wealth
Investment in Market Leading Analytics
Financial Services
Treasury
Services
Multidimensional Profitability,
Funds Transfer Pricing,
Asset Liability Management,
Balance Sheet Planning
1998
Transactional Analytics,
Anti-Money Laundering,
Broker/Dealer Compliance
Basel II, Economic Capital,
Credit Risk, Operational Risk
2005
Activity-Based
Management, Funds
Transfer Pricing, Financial
Services Data Warehouse
2006
Customer Analytics,
Business Intelligence
2007
Financial Consolidations,
Budgeting & Planning
Oracle FS Analytics
Vision
1. Merge Best-of-Breed capability across products
Treasury
Services
2. Create a single integrated platform
Financial Services Business Intelligence
Financial Services Analytics Framework
Financial Services Data Model
33
Market Leading Applications
EPM Workspace
Governance
Risk & Compliance
Enterprise Risk
Management
Enterprise
Performance
Management
Customer
BI Applications
Insight
Business Intelligence Foundation
Fusion Middleware
OLTP & ODS
Systems
Data Warehouse
Data Mart
OLAP
SAP, Oracle, Siebel,
PeopleSoft, Custom
Excel
XML
Business
Process
Revenue Management and Billing for Financial
Services (RMB)
Oracle – A complete Billing/AR solution:
 Rating Engine – Billing Calcs, Commissions
 Billing Engine- scalable, flexible
Self Service
 Full Credit Collections Suite
 A/R
 Customer self service (web presentment)
RM&B
 Currently Integration to:
 Financials AP/GL – ORCL and PSFT
productized
 CRM – in process to be productized
 Self-Service (OCS delivered)
 Currently in production integrated with
Oracle EBS, PSFT Financials, SAP, Siebel,
Lawson, and many other COTS packages
and custom systems
© 2007 Oracle Corporation – Proprietary and Confidential
The Value of FLEXCUBE®
• Business agility/flexibility
-
Flexible business rules definition
Combining rules to offer innovative products
Reduces time-to-market for new products
• Customer loyalty/acquisition
-
Offers complete relationship View
Provides real-time information
• Rapid growth
-
Enables horizontal and vertical scalability
Eases post M&A integration
• Operational efficiency
-
Lowers operational cost
Increases automation and STP
• Service oriented architecture
- Encapsulates over 1000 services
- Delivers BPEL based process orchestration
- Eases interfacing/integration with external
systems
• Real-time, 24x7 capabilities
• No redundant processing
• Eliminates memo posting reconciliation
- Reduces manual exception processing
• Technology
- Enhances maintainability and lowers IT
costs with contemporary, industry-standard
technology
- Leverages platform and database
independent
Oracle Financial Services Solutions
Oracle Financial Services Solutions are can be offered in a wide array of
deployment options and configurations.
In House
Remote
Hosting
Application
Service
Provider
& Loans)



FLEXCUBE Financial
Ledger


FLEXCUBE Universal
Banking


Treasury Services







Solution
FLEXCUBE Retail (Deposits
Fraud Mitigation
(Oracle/Mantas)
Regulatory / Compliance
Oracle / PeopleSoft
Financials
Analytics
CRM
Technology Stack



Business
Process
Outsourcing




Client Traction
Market Segments
•
•
•
•
International Bank operations in NA
Commercial Deposits
Treasury
Commercial Lending
• Recent Clients
•
•
•
•
•
•
•
•
•
American Express Bank
Caisse Centrale Desjardins
Citibank
Federal Home Loans Bank – NY
FINCA
GE Money Bank
International Monetary Fund
North Carolina Dept. of State Treasurer
Silicon Valley Bank
Oracle’s Financial Services Strategy
Oracle’s Strategy and Vision is based on the view that the
only way to bring a wide range of domain specific software
capabilities to market is through:
1 • Developing and acquiring the most complete set of “best of
breed” functional capabilities available from any one single
vendor
2• Pre-integrating these “best of breed” solutions through
process based integration to reduce complexity and cost for
the customer
3• Standardising and converging over time the “integrated best of
breed” solutions onto a common, open technology architecture
4• Building an ecosystem of system integrators to complement our
own capabilities for platform lead implementations
© 2008 Oracle Corporation – Proprietary and Confidential
39
Enable Business Transformation through Composite Business
Processes
Oracle Application Integration Architecture
• Accelerate Business Process
Transformation
Industry Reference Model:
Provides a reference framework of best practice
processes
• Reduce Integration Risk
Process Integration Packs:
Quickly integration Oracle application to create the
business processed you need, without the risk
• Enterprise-wide Standardization with Reusable Process Components
Foundation Packs:
Pre-built set of Enterprise Business Objects & Services,
integration management infrastructure and proven
methodology significantly lowers cost of ownership and
provides a faster time to value for new composite
business processes.
• Achieve Business Process Adaptability and
Agility
Pre-built SOA:
Application independent service translation and
transformation
ORACLE Fusion Financial Advisor Desktop
Application Component Strategy
Fusion WebCenter Suite
Fusion SOA Suite & Fusion Middleware
Fusion Business Process Manager / BPEL / ESB
ORACLE Application Integration Architecture
ORACLE
i-flex WM
3rd Party
Market Data
Customer
Applications
Applications
Applications
Providers
Applications
Oracle’s Financial Services Strategy
Oracle’s Strategy and Vision is based on the view that the
only way to bring a wide range of domain specific software
capabilities to market is through:
1 • Developing and acquiring the most complete set of “best of
breed” functional capabilities available from any one single
vendor
2 • Pre-integrating these “best of breed” solutions through process
based integration to reduce complexity and cost for the customer
3 • Standardising and converging over time the “integrated best of
breed” solutions onto a common, open technology architecture
• Building an ecosystem of system integrators to complement our
4 own capabilities for platform lead implementations
© 2008 Oracle Corporation – Proprietary and Confidential
42
We are leveraging Industry Standard
Middleware and Architecture
© 2008 Oracle Corporation – Proprietary and Confidential
43
Oracle’s Financial Services Strategy
Oracle’s Strategy and Vision is based on the view that the
only way to bring a wide range of domain specific software
capabilities to market is through:
1 • Developing and acquiring the most complete set of “best of
breed” functional capabilities available from any one single
vendor
2 • Pre-integrating these “best of breed” solutions through process
based integration to reduce complexity and cost for the customer
3 • Standardising and converging over time the “integrated best of
breed” solutions onto a common, open technology architecture
4• Building an ecosystem of system integrators to complement our
own capabilities for platform lead implementations
© 2008 Oracle Corporation – Proprietary and Confidential
44
Oracle’s Global Partner Network
GLOBAL SYSTEM INTEGRATORS
2,000+ Partners in
the Financial
Services
ecosystem
including SIs, ISVs
and VARs
© 2008 Oracle Corporation – Proprietary and Confidential
45
Strongly Differentiated Value Proposition
Most comprehensive
range of
applications
Best of Breed &
Pre-integrated
Components
Business Processdriven
transformation
Strong commitment
to open standards
and interoperability
Strong delivery
capability with
domain expertise
© 2008 Oracle Corporation – Proprietary and Confidential
• Oracle as Strategic IT partner rather than technology vendor
• Single point of responsibility for total solution
• Best-in-class functionality to solve business problems
• Pre-built and sustainable integration – reduced TCO and
complexity
• Alignment of IT strategy alignment with business priorities,
with immediate business impact
• Enabling evolutionary transformation of legacy infrastructure
• Strategic enablement of standardization and consolidation
• Ease of integration with third party and legacy solutions
• Evolutionary transformation to SOA
• Risk mitigated project delivery with strong track record of
success
• Strong relationships with leading System Integrators to
deliver complete solutions and risk mitigation
46