Automating Compliance for Complex Insurance Policies
Overview.
The client is the parent of a group of several successful financial services member companies offering a variety of finance, insurance, and retirement products through multiple distribution channels. Client faced regulatory risks with complex universal life policies due to outdated systems. Client, who used multiple aging legacy systems, identified several gaps in compliance in the handling of guideline premiums, corridor testing, and tax reporting. Our domain led cross-functional agile team delivered 70+ corrections, reviewed compliance for over 55,000 policies, and made corrections to over 1,200 policies with incorrect past processing identified.
Our client used multiple legacy systems for administering policies, a large volume of which were closed book policies issued over the past several years. The policies based on flexible premium products posed significant compliance and legal risk to the insurer due to the following:
Inaccurate policy compliance status and tax reporting
Problems in handling guideline premiums and corridor testing and related processing.
Lack of automated force out functionality for an excess premium refund
Solution
Coforge formed a cross-functional agile team for continuous delivery of value. Key actions taken: :
Discovering issues – Product-wise discovery
Fixing Issues – New Functionality / Fixing Errors
Validating Fixes – Automated testing tools used to enhance speed
Automated regression process to reduce the risk of rework
Leveraged unused repetitive payment feature to completely automate force out of value on out of compliance policies
Created features and functionality to trigger recalculations to correct Guideline Values Several accelerators were created to meet the needs of the challenge
