IA+ brochure_v2.0

Insurance Analytics

Stay ahead of the game

IA+ OVERVIEW

FUNCTIONAL COVERAGE

SALES & DISTRIBUTION MARKETING

FINANCEUNDERWRITINGACTUARIAL

CLAIMS

© 2015 GrayMatter Software Services Pvt Ltd. All Rights Reserved Empowering Intuition

IA+ is a pre-built “Insurance Analytic solutions” developed especially for the Business Heads of insurance companies who are responsible for top-line growth and bottom-line productivity with greater operational efficiency.

The IA+ comes with comprehensive performance management solutions which enable the business users to measure their unit performance against various KPI’s & metrics which has direct impact on their unit performance. The dashboard has been tailor-made for each business user based on their roles & responsibilities in the organiza-tion. The KPI’s & metrics on the dashboard have been organized in such a way that the user’s can easily navigate from scorecard to each KPI & sub KPI with simple click-of-a-button. The management dashboard has the ability to showcase multiple scenarios of the business which can assist the business users in taking quick decision across the line of business (LOB) and functions.

The IA+ covers complete spectrum of the insurance business from Sales & distribution to Marketing, Claim, Operation, Underwriting, Actuarial, Finance, Re-Insurance and Regulatory Compliance.

REGULATORY & COMPLIANCE

RE-INSURANCE

Key Bene�ts

. Faster decision making

. Managerial Effectiveness

. Higher Productivity

. Greater operational efficiency

. Higher Customer retention

. Effective Campaign Management

. Improve leads management

. Optimal Product Mix

. Improve Persistency

. Accuracy in projection

SALES & DISTRIBUTION

MARKETING

© 2015 GrayMatter Software Services Pvt Ltd. All Rights Reserved Empowering Intuition

Top 10 Reasons

1. KPI driven dashboard for decision making

2. Centralized data base for all departments

3. Fast & accurate data for Reporting & analysis

4. Higher Operational efficiency

5. Forecasting & prediction for planning

6. Customer profiling for up-sell/ cross-sell

7. Higher leverage on claim reserves

8. Identification of Risky segments

9. Higher leverage on Sales Contest

10. Better control on Re-insurance Premium

Maximizing top-line in the insurance industry depends on effectively managing multiple distribution channels and intermediaries. Traditionally, Agency channel has been major contributor to top-line growth but lately, other distribution channel such as Bancassur-ance, corporate & online channel has grown up significantly. The IA+ Sales & distribution analytics helps in the following areas:

• Improve New Business Premium (NBP/ GWP)• Manpower retention• Quality Recruitment• Higher Productivity & Activity Ratio• Optimal Product Mix • Effective Sales contest Management • Sales Activity Management

In this competitive business environment, Insurance companies are adopting aggressive marketing strategies for new customer acquisition and existing customer retention. Analysis of customer’s data scientifically can through many insights of customers such as their buying behavior, investment pattern, risk appetite etc. Such insight can be used for targeted campaign for up-sell/ cross-sell & customer retention. The IA+ offers advance analytics module such as

• Customer Segmentation• New Product Penetration• Competition Analysis• Customer Profitability• Lapse & Surrender

CLAIMS

One of the key differentiators in the highly competitive insurance world lies in, rising upto and going beyond customer’s expectations at the time of claims. The IA+ Solutions provide claim Heads with spectrum of analysis required to manage claim effectively. Some of the key analysis is as follows:

• Claim Efficiency Management • Claim Cost Analysis• Claim Forecast • Loss Ratio

FINANCE

The IA+ offers comprehensive Finance analytic solutions for the Finance Managers & CFO of insurance companies to monitor their revenue, expenses, investments, budget & profitability more effectively.

• Revenue Analysis • Cost & Profit Analysis • Policy level profitability• Ratio Analysis• Cost center Analysis• Audit & Compliance

IA+ Standard Module

Business Planning & Forecasting

IA+Advance Module

Lapse & Surrender Model

• Total Manpower ( Agents/ Unit Manager)• No. of Active Agents/ Unit Manager• Average Premium or Case Size• Case rate of Active Manpower• New Recruitments

Customer Segmentation

Graying Seniors Individuals Inc Avg: 1000K Average Motor Vehicle 400,000

High

Avg 50 SD 5 Inc SD: 200K SD 40,000

Growing Middle Class

Individuals Inc Avg: 80K Inc SD: 15K

Average MV 200K SD Medium High

Avg 40 SD 6 30K

Individuals Inc Avg: 50K Average MV 80K SD 15K Low

AVG 45 SD 8 Inc SD: 12K

Price Conscious Individuals Inc Avg: 60K Average MV 150K SD25K

Low

AVG 42 SD 7 Inc SD: 10K

Average Joe

Corporate & SMES

Corporate NA Multiple cars average 100K SD 15K

Age Income & Net worth Assets Insured

High to Medium

Propensity

© 2015 GrayMatter Software Services Pvt Ltd. All Rights Reserved Empowering Intuition

UNDERWRITING

The profitability of Insurance companies largely depends on prudent underwriting. The underwriters need to analyze new cases and claim from each product line according to its specific risk parameters. The IA+ offers host of analysis towards the key parameters.

• New case Analysis • Underwriting expense Ratio• Underwriting Profitability• Persistency Analysis• Product line Analysis • Underwriting decisions

ACTUARIAL

The IA+ Solution enhance the ability of Actuary and Risk team to strategically plan their product pricing & reserves so that it is aligned to all the stakeholders including policy holder. The IA+ offers the followings analysis :

• Lapse & Surrender Rate • Withdrawal Rate • Mortality & Morbidity Rate • Product Profit Analysis• Solvency Ratio & Reserve• Loss Ratio

The business planning module is built with unique combination of Sales Forecast & What-if Analysis. The Predictive model generates sales forecasting based on historical Sales data of last 3-5 years and predicts the business for the next 6-12 months. Once the forecast is performed, the line manager can use the Planning module to set their business plan using What-if Analysis by applying key variables such as:

The objective of customer segmentation is to target each segment differently for new offers & up-sell/cross sell opportunity. The customers are divided into various segments based on their demographic, geographic & psycho-graphic attributes and they are grouped using statistical or clustering models such as Association, K-Means & Hierarchical clustering on the basis of their transactions like propensity to invest in certain types of product or services.

Lapse & Surrender model is designed to predict the likelihood of a customer who has high probability of discontinue paying premium from the next policy anniversary year or surrender the policy. This predictive model is built using advanced statistical models such as “Decision tree, logistic regression & random forest ”. This model enables the customer retention team to launch various initiatives towards customer retention.

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DATA INTEGRATION

Sentiment Analysis

Sales Contest Management

• Contest Planning • Sales Prediction before the launch of contest• Incremental business by each line of business • Daily update of probable qualifiers with their shortfall & Pending policies• Daily alert to all probable qualifiers

Empowering Intuition

This model is designed to measure the sentiment of a customer on the basis of various interactions with the customer service executives over a period of ‘x’ months before discontinue the paying premium or initiating surrender. This model is built using the text mining capability of advance algorithm where the model can predict the likelihood of a customer’s next action within 1-2 weeks of interaction. This model helps in improving customer service quality as well as improve customer retention.

As Insurance companies use various sales promotional schemes to drive insurance sales throughout the year it becomes difficult to track these entire schemes & leverage them to improve top-line growth. Our pre-built Sales contest Management solutions help in the following areas:

Insurance companies around the world have disparate data sources originating from various front-end and back-end systems like Life Asia ( AS/400) Policy Asia, PREMIA Life/ PREMIA General , Policy Admin system, Claim, Finance Systems, CRM , ERP and Call centre weblog which needs to be integrated with centralized data base. Our data integration approach cross link with various application and transaction systems, thereby business users can access required information from single centralized Data Warehouse. We also work with our clients in creating a comprehensive Road-Map for Business Analytics which includes data integration strategy at enterprise level for seamless flow of information across organizational boundaries to improve operational efficiency. We help our clients in deploying most accurate, reliable & scalable analytics platforms by leveraging existing data base systems.

Case StudyAbout AIA: Part of the AIA Group, the largest independent publicly listed pan-Asian life insurance group, AIA Bhd. has the financial strength, experience, service centre network as well as a well-trained team of 2,200 staff to serve its close to three million customers nationwide. As at end 2013, AIA Bhd.’s total asset worth was RM42 billion, with a paid-up capital of RM767 million.

© 2015 GrayMatter Software Services Pvt Ltd. All Rights Reserved

Key Challenges

• Develop comprehensive “Performance management” system for Sales & Distribution channel to manage multiple distribution

channel effectively

• Provide access to over 17,000 uers across 36 branches including Life Planner (LP) and Unit Manager

• Provide access to all business users from the existing Sales Portal with user security

• Automate Sales Contest & Competition to bring more effectiveness

GrayMatter IA+ Solution

• Deployed IA+ Sales & Distribution Analytic solution with minimal customization to meet AIA requirements

• Customized the dashboard to meet different users requirements from Life Planner ( LP) & Unit Managers to CAO & Management team

• Provided seamless integration with the existing AIA data base and and the existing Sales portal with single sign-on

• Automated the Sales contest & Integrated with the dashboard for higher visibility & better productivity

- Teh Kim Leng , CTO, AIA Bhd. Malaysia

“The business management solution developed by GrayMatter is a powerful performance management application

empowering the user with business critical information on key performance metrics and helps in business planning

across all distribution channels”. GrayMatter was able to deliver this project in record 8 weeks time because of their

pre-built Insurance specific data model & data -marts for Sales & distribution channel.

HQGrayMatter Software Services Pvt. Ltd.RMZ Ecoworld SEZ, Outer Ring Road, Bangalore - 560 103, INDIA.Phone: + 91 80 6715 6666Fax: + 91 80 6715 6611 Email: [email protected] Intuitionwww.graymatter.co.in

Global O�ces

USAGrayMatter Software Services Inc15305 North Dallas Parkway,Suite 300 Addison,Dallas, Texas 75001Ph : +1 972 455 2829Email: [email protected]

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APAC GrayMatter Software Services Sdn.Bhd.16-11 SUCASA, 222 Jalan Ampang, 50450 Kuala Lumpur, Malaysia.Phone: +601139371606Email: [email protected]