An Insurer Switched to Centralized Data Repository and Saved $2 Mn in Labor Expense
Overview.
Data is the lifeforce of any successful business and the insurance industry is no exception. Insurers immensely depend on high-quality data for all their small and big decisions related to product development, marketing, pricing, customer selection, behavior analysis, overall optimization of portfolios and more. The client, a top ten life and annuity insurer in the U.S., wanted to implement a high-performance centralized data repository to harness analytics and intelligence across business areas. Coforge offered cloud-based data management solution integrated with deep domain knowledge. It helped the client establish an agile data management environment capable of delivering significant financial benefits.
The client needed a high-performance centralized data repository to maintain a consolidated space to store data that is critical to their operations. The main issue of the client was to enable reporting, what-if modelling, customer intelligence, and ad hoc analysis for the reinsurance, valuation, actuarial and financial planning functional areas.
Key business challenges:
Low interest rates which were adversely affecting the profitability
Stagnant premium growth which was negatively impacting the client’s competitiveness and ability to draw new customers
Lower reinsurance margins
Deteriorating mortality margins
Solution
Coforge created a cross-functional, agile team to translate the plan into action. Our solution had to ensure that data from multiple policy administration aligns with the claim system. Centralized data allows insurers to solve multiple challenges, such as persistent low-interest rates, deteriorating mortality margins and more.
Key aspects of the solution delivered:
Implementation of AWS cloud-based data solution leveraging Redshift for Data Mart and Oracle for Data Warehouse
Design, development, testing, and implementation of highly scalable ETL solution leveraging Informatica BDM
Sourcing of data from Policy Admin, Claims, Valuation, Reinsurance, Financial and Underwriting systems
Historical Data Load, Reference Data Management, Automated Reconciliation, and Data Integrity
The Impact
Delivered centralized and conformed data repository for Life Business
$4mn saving through reinsurance favorable outcome
$1.5mn incremental earning by optimizing product mix and market positioning
$1.7mn margin preserved through enhanced policyholder retention strategy
$2mn reduction in labor expenses
Are you struggling with data modernization for your business? An efficient central data repository could be the solution. If you want to know more, shoot us a message and we will be happy to assist you.
