North American New Business and Underwriting Systems, 2010

by Karen Monks, November 22, 2010
Product Trends/ Reviews
North America

Abstract

Despite conditions that have made many companies more risk-averse, there is strong interest in automating underwriting and new business functions.

Insurers are increasingly looking at new business and automated underwriting systems to help address growth, fulfill service and distribution mandates, and reduce the cost per policy issued. New business and automated underwriting systems have gone through an evolution over time. New business and underwriting systems have evolved into systems that tie application questions and third party data into the underwriting for specific products. Data analysis capability has been expanded, and insurers can use system behavior to change underwriting rules quickly.

In a new report, North American Life Insurance New Business and Underwriting Systems, 2010, Celent reviews 12 new business and automated underwriting systems in use for life and annuities products. The report’s ABCD Vendor View presents a comparative view that visually represents at a glance the relative positions of each vendor in four dimensions: Advanced technology, Breadth of functionality, Customer base, and Depth of client services. XCelent Awards have been given to top-performing vendors in each of the four categories.

As part of the evaluation process, Celent looked at the availability of feature functionalities in the systems and how the systems interfaced with third party data providers. Most vendors had a complete set of these functionalities in production with life insurers in North America.

“The features and functionalities in the systems evaluated all help to speed policy issue and reduce costs associated with new business and underwriting processes,” says Karen Monks, Analyst with Celent’s Insurance Group and author of the report. “In the increasingly competitive and uncertain life insurance market, anything that can mitigate the time and cost of issuing a policy but maintain the appropriate level of risk will provide an advantage for insurers.”

The report covers the following vendors: Accenture, Allfinanz, CSC, Infosys, MajescoMastek, PlanetSoft, Step Solutions Group, StoneRiver, and Tata Consultancy Services, as well as reinsurance solutions from Hannover Re, Swiss Re, and Transamerica.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

3

Introduction

5

New Business and Underwriting: Definition and Functionality

7

Report Methodology

12

Celent’s ABCD Vendor View

14

About the Profiles

20

Accenture: Accenture Life Insurance Platform (ALIP)

21

CSC: New Business Accelerator (TPP)

30

MajescoMastek: NB+U

38

PlanetSoft: The Policy Processor (TPP)

46

StoneRiver: LifeSuite

55

Limited Profiles

64

Allfinanz: Allfinanz Underwriting Rules Engine, Allfinanz Business Analytics

65

Infosys: VPAS NBF

70

Step Solutions: STEP (Straight Thru Enterprise Processing) Origination Portal

75

Tata Consultancy Services: TCS BaNCS Insurance

80

Reinsurance Solutions

84

Hannover Re: Merica

85

Swiss Re: LifeGuide

90

Transamerica: Velogica

93

Comparative Charts

97

Concluding Thoughts

99

Leveraging Celent’s Expertise

100

Related Celent Research

101

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