Risk Bid Management

Following a wide experience in the insurance sector, SAFIRA has developed a straight-through processing solution called Risk Bid Management (RBM). RBM is an outstanding solution for Insurance Companies looking to boost their sales on risk products through banking branch networks. SAFIRA’s solution is able to integrate in a single business flow, the Banking credit workflow system into the Insurance Company’s line of business system and the Health Service Provider system, through a proven high-performance, robust and secure platform. For all parties involved in selling insurance risk products, it is a cost-effective, high-value solution that reduces manual work and increases the overall Quality of Service thus resulting in a significant sales boost.

Leveraging the capabilities of WODM v8.0, the latest state-of-the-art Business Rules Management System (BRMS) from IBM, business users are able to change business rules using WODM’s Decision Center collaborative environment. 

When processing risk proposals, a significant bottleneck resides on the risk analyst pool that is usually required to analyze all bids. This solution is able to significantly reduce manual work by automating the approval process for a large % of bids.


SOLUTION HIGHLIGHTS
  • Automated approval process: automatic decision for a large % of bids will keep operational costs down while managing risk and complying with agreed service levels. The customer gets an answer faster than ever before.
  • Automated selection of medical questionnaires and exams: clinical questionnaires are automatically selected based on the applicant’s profile. It’s the first step to get to know your client and reduce risk. Medical exams are costly but a critical part of the process. Business rules are put in place to choose the right medical exams for each applicant.
  • Automatic decision based on medical exam results: automatic decisions can also be made after the results of the medical exams are received. Bids can then go to manual analysis, automatically refused or automatically accepted with an eventual surcharge.
  • Automated selection of risk analysts: when manual work needs to be done, choosing the right risk analyst to handle the process is very important. This automatic selection takes into account the current work load but also the risk analyst profile. Higher value insured capital bids might be handled by senior risk analysts.
  • Enforcement and control of SLA: enforces SLA for all parties involved. Allows key users to monitor the process flows and retrieve statistical information about SLA fulfillment. 
  • Simple systems Integration: a built-in Enterprise Service Bus (SAFIRA’s Maestro ESB) allows simple and transparent integration with all parties Line of Business Systems, through open standards like HTTP, SOAP, XML. Seemingly handles message composition, transformation and resubmission.
  • Customizable & extensible: user interface and business logic built using SAFIRA’s Quartz development framework and methodology that combines prototyping, normalization, visual application modeling and automation of development tasks.
BUSINESS CHALLENGE AND MOTIVATION

Insurance industry is a very competitive market which requires a continuous focus from the companies. Life and non-life insurance companies operate in an even more dynamic market, having to respond quickly to changing conditions. Although there are different realities, in the insurance industry some typical pains are common when addressing the management of risk proposals:

  • Scattered or no fixed business rules for adjusting the acceptance criteria, just guidelines or ranges
  • Business strategy is often defined and managed in the complex Core System
  • Costly and lengthy updates of the business rules, always involving IT department
  • High level of manual processing from analyzing the process on paper to entering the data into numerous internal applications
  • Inability to quickly grow as the risk analyst pool has limited processing capacity can signify loss of business and lower client satisfaction
  • Struggle to satisfy agreed service levels
OUR ARCHITECTURE

SAFIRA’s RBM solution adds a new component to the current architecture in order to streamline the business interaction. The solution fully integrates the bank commercial network, the insurance company core systems and the health service provider that schedules and manages medical exams for applicants.

Risk Bid Management

Business users are able to change business rules using WODM’s Decision Center collaborative environment. They can manage risk bids acceptance criteria but also clinical questionnaires and medical exams related business rules.

CASE STUDY

The challenge - BES VIDA Companhia de Seguros S.A. one of the main Life Insurance Companies in Portugal, offering risk products, mixed, incomes and capitalization, wanted to expand its business, in order to face the market demand and the competition pressure. However, the inefficiency of its business process, from the risk analysis of the insurance subscriptions proposals to the policies creation, had become an obstacle to its growth. 

The results - In only 3 months’ time SAFIRA successfully deployed the Risk Bid Management Solution. Analyzing a two year time span comparing the year before and the year after the deployment, we can see a significant impact.

BES Vida - RBM

Only one full year after adopting this solution, BES VIDA increased its business by 22%. Also, 31% of the risk bids were automatically handled and customers got their answer sooner than ever. BES VIDA estimates that SAFIRA’s Risk Bid Management solution had a positive impact in excess of 300M€.

This solution is still being used by BES VIDA and it is now, more than ever, a critical asset to the way the company conducts its business. Leveraging historical information, BES VIDA was able to progressively fine tune the business rules and increase the % of fully automated processes. Last year almost 40% of the risk bids evaluation process was fully automated with zero human intervention.