ENABLED DIGITAL AND REDUCE COST OF OWNERSHIP THROUGH POLICY ADMINISTRATION TRANSFORMATION

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CLIENT

Leading life insurance provider with business interests in North America, UK and Hong Kong, was looking to simplify and digitally transform their Individual Customer Life Insurance business. They were dealing with numerous challenges within their legacy portfolio, including –

Highly complex and customized, multi-platform legacy mainframe Policy Administration environment, with the most recent application being over 20 years old
High cost of run, and regulatory and business changes (e.g. Taxation) across 4 distinct Policy Administration systems; burdened with technical debt which increased technology health and regulatory risk
Complex existing technologies with incompatible integration protocols to web services, impeding strategies for digital, and ability to grow new sales and launch products faster
Validation of systems behavior as per product specs and policy lifecycle
Independent reconciliation for actuarial, controls, accounting systems
Lack of resources with expertise on core systems, raising a significant knowledge risk and high cost of maintainability

SOLUTION

Mphasis helped the client assess various transformation options for their Individual Customer business. This ranged from consolidating on their most current legacy system, upgrading to a modern Policy Administration platform (Ingenium 7.7 and ProductXpress for rules and products setup), and outsourcing closed block of business to a third party administrator. Mphasis was selected to deliver the legacy transformation program, which consolidates their 4 distinct systems on Ingenium 7.7 & ProductXpress.

Roadmap for consolidation on a single PAS platform included -

• Successfully setting up Ingenium 7.7, integrating with 56 applications in Individual Customer LOB, launching Term New Business and migrating 150,000 Open Block Term policies, under Phase 1 in a period of 16 months

• Executing 4 project tracks concurrently - Term migration for over 500,000 policies across 3 systems, PAR New Sales & Servicing rollout with policy migration for another 150,000 policies under Phase 2 of the project

• Deploying Fusion tool for iterative plans, rates and policy conversion test runs, with automated reconciliation of extract file outputs

• Leveraging homegrown mainframe based tools to reverse engineer PAS business rules & program call structures. This accelerated requirements analysis and eliminated risk of missed requirements

• Validating comprehensive tests involving full production batch volume with daily/weekly/ME/QE/YE sequencing for comparison and downstream business users’ reconciliations. A data reconciliation utility was deployed for file extract comparison between source and target extracts, resulting in over 70% effort reduction as compared to manual test comparison process

BUSINESS BENEFITS

PAS consolidation and transformation helped achieve below benefits -

Fully integrated Ingenium platform with digital channel, enabling new product on sale for advisors

Enhanced customer experience and reduced cost achieved through consolidation of 4 legacy system in latest Ingenium platform that simplifies the operations

Reduced manual effort and processing time within operations and contact center by delivering straight through processing

Reduced technical debt by leveraging webservices for event-driven integration within the client ecosystem; lowered mainframes footprint by migrating 500+ mainframe reports to Windows / Onbase framework

Externalized hard coded services using webservices and components such as ProductXpress (e.g. Premium Calculations, In-force Illustrations) for ease of adoption and maintainability

35% time savings achieved with Fusion tool in data migration