INSISPrototypes

1

Petar ObbovFadata, BulgariaJune, 2013

INSIS Prototype concept

What are the factors that make the implementation smoother and seamless

AgilityBuilding common team – no longer one active side onlyEarly detection of problems – many gateways along the path secure that the project is on the safe tackStrict partitioning of the project in partial deliveriesAbility to perform more realistic planning (more detailed PP)

Implement INSIS made easy

Do not mix it with some of the products that normally never reach the assembly line

What is actually the prototype of INSIS?

What is actually the prototype of INSIS?

What is actually the prototype of INSIS?

27 Basic products

7000 Crops Insurance Agriculture Basic7001 Livestock Insurance Agriculture Basic8000 Aircraft hull and liability Aviation Basic9000 CAR/EAR Engineering Basic1000 CMR (Carrier/Forwarder Liability) Liability Basic1002 Road Carrier Liability Liability Basic1003 Product Liability Liability Basic1004 Professional Liability Liability Basic1005 General Liability Liability Basic2000 CARGO Single Transportation Marine Basic2001 CARGO Open Cover (Fixed Duration) Marine Basic2002 Marine Hull Marine Basic2003 Marine Liability Marine Basic3000 MTPL Insurance Motor Basic3001 AUTO CASCO Motor Basic3004 Rolling Stock (Railway) Insurance Motor Basic5000 Travel Health Insurance [ind+group] Personal Basic5001 Individual Personal Accidents Personal Basic5002 Group Personal Accidents (Not nominated) Personal Basic5003 Group Personal Accidents (Nominated) Personal Basic6000 Leisure House Insurance Property Basic6001 Household Property Insurance Property Basic6002 Commercial Property (SME) Property Basic6003 Fire and Allied Perils Insurance Property Basic6004 Machinery Breakdown Insurance Property Basic6005 Electronic Equipment Insurance Property Basic6010 Private property Property Basic

CODE Product Name LoB Layer

INSIS process model

Claims

Issue policy Claim settlement

Claim payment

SubrogationCreate proposal

Where does the INSIS prototype apply?

To be used for:‐Automated testing‐Implementation projects

What did the project deliver?

Insurance product

Claims

Billing & Collection 

Reinsurance

Business processes according to the Fadata reference model

Commissions

Integrations

Reports and Printouts

Areas covered by RQ templates

Test plan

Reference info

Input data

Test Script

Reference info

Input data

Test Script

Reference info

Input data

Test Script

Reference info

Input data

Test Script

…,,

Test Pr

ocedur

e

Automated testing

Regional prototypes

Country Layer & Compulsory productsINSIS Country Layer

Compulsory products (MTPL, Hazardous facilities)

Integration with the public register of addresses (КЛАДР)Integration with the auto insurance union system (РСА) Integration with the liability insurance union system

Interface for the obligatory reporting of the IC

Integration with 1C

Calculation of the insurance reserves for life and non‐life insurance in accordance with the legal requirements

Compulsory products

In the regional prototype of INSIS for the Russian market are included the products being compulsory as per the local legislation: 

Motor third party liability (ОСАГО). 

Compulsory liability insurance of the owners of hazardous facilities (ОСОПО). 

Country Layer

Obligatory insurance products

Typical products

Standard processes

Insurance reserves

Obligatory reporting

Integrations

Typical productsCountry Layer

Obligatory insurance products

Typical products

Standard processes

Insurance reserves

Obligatory reporting

Integrations

Typical productsExcept for the compulsory products in the Russian prototype are also included some of 

the most typical products for the market

Retail products

Auto insurance

CASCO ‐ Voluntary auto insurance

VMTPL ‐ Voluntary motor third party liability insurance

Personal insurance

Personal accident

Personal accident and disease 

Travel insurance (ВЗР)Voluntary medical insurance (ДМС)

Property insurance for individuals

Commercial products

Auto insurance

Property insurance for legal entities

Cargo and Carrier’s liability

CAR

Agricultural insurance

Employer’s liability

Standard processesCountry Layer

Obligatory insurance products

Typical products

Standard processes

Insurance reserves

Obligatory reporting

Integrations

INSIS Standard processes

To simplify the analysis, re‐engineering and optimization of business processes when implementing INSIS, as well as to document the processes implemented in the system Fadata has developed a comprehensive model of the basic business insurance processes standard for the Russian market. The model covers all areas of the insurance business, and also describes the link with the system services and components. The prototype of INSIS for Russia is developed according to the pre‐configured standard processes of the reference model, the orchestration of which is taken care of by the INSIS Workflow Engine:

New business

Creation of proposal

Premium calculation

Actuarial calculations

Acceptance of proposal

Underwriting

Policy issuance

Outputs generation

Policy administration

Amendments

Renewal

Invalidation

Cancellation

Partners management

Agents network administration

Renumeration

Reports on commissions

Payment and refund of commissions

Financial operations

Account management

Formation of accounts (automatically or manually)

Booking of incoming and outgoing payments

Sub‐ledger transactions booking

Closure of periods

Claim settlement

Registration and notification

Reserve calculation

Evaluation

Indemnity calculation

Subrogation

Reinsurance

Facultative and automatic treaties

Inwards and outward reinsurance

Risk placement

Reports on the ceded premiums and claims shares

RI bordereau

Create proposal process

Insurance reserves & Obligatory reportingCountry Layer

Obligatory insurance products

Typical products

Standard processes

Insurance reserves

Obligatory reporting

Integrations

Insurance reserves

Calculation of reserves in line with the local legislation for life and non‐life insurance:

Unearned premium reserve (UPR)

Outstanding loss reserve (RBNS)

Stabilization reserve

Mathematical reserve

Reserve additional

Equalization reserve

Obligatory reporting

In the Russian prototype there are the following type of reports which retrieve the information which is seen by the authority as obligatory:

Financial report

Authority reporting

Statistical report

Reporting to the professional organization of the insurers

Obligatory reporting

Financial reports Statistical reports Organization of the Insurers reports

Form N‐Insurer

Authority reports

Form N‐Insurer

Form 1‐C

Form 2‐C

Form 1‐CK

Form 1‐HCCO

Form 1‐BCC

Form 1‐PCA

Standard processesCountry Layer

Obligatory insurance products

Typical products

Standard processes

Insurance reserves

Obligatory reporting

Integrations

Out of the box interfaces for the Russian market

Interfaces for integration with common information systems of the insurers:

АИС РСА – Automated IS for the union of the auto insurers

АПК ИРЦ ОСАГО – IS for direct claim compensations

АИС НССО – Automated IS of the national union of the insurers

Interfaces for integration with systems well known on the Russian market

КЛАДР ‐ Public register of addresses

1С ‐ Bookkeeping

Regional prototypes

1 ‐ Introducing changes and reacting quickly to market needs

INSIS Product Configurator – Componentized product design and management

Component reusability Component versioningProduct versioningAutomated product deployment

2 ‐ Investing in a new system is a long, complicated and resource‐consuming process

Optimized implementation methodology –prototype based agile approachSmooth transition process

3 ‐ New Distribution channelsINSIS Product ConfiguratorINSIS Workflow builder

The history – why did we change the approach?

4 ‐ New insurance productsINSIS Product ConfiguratorINSIS Workflow builderINSIS Front end composer

5 ‐ Unsafe projects & Risk DiminishingINSIS V10 architecture – Bus oriented architecture isolating the components from each otherOptimized implementation methodology –prototype based agile approach 

6 ‐ Significant investments in legacy system maintenance

Optimized implementation methodology –prototype based agile approachSmooth transition process

7 ‐ IT Budget cutsSignificant reduction of  the implementation cost

Baseline for prototyping

Baseline for regional prototyping

Separation in teams by tracksProductsProcessesUser InterfaceIntegration

Leading stakeholders

The implementation process

The sequence of prototypes is called INSIS V10 prototyping phases. Depending on the project complexity, the number of integrations, number of business lines, and level of automation, self‐service and STP processes the number and the scope of prototyping phases may vary.

Partial delivery means any subset of already accepted prototypes (part of the prototyping sequence) plus certain number of external services (if any), integrations, printouts and reports. The particular scope of the partial delivery should be defined according to the scope of the contract, Project and Milestone plans

The implementation process (cont’d)

Project milestones

Prototyping Partial delivery

Project milestones

Prototyping Partial delivery

What are the problems we have faced in the past and we believe will bypass thanks to the prototypes

GAPs in the requirementsInaccurate planning ‐ project delaysHigher demand on training courses

Modularity – partitioning of the software design 

Coherent components

Bypassing project issues

Update your glossary

The team performing the implementation is comprised from both sides

Ensure transfer of knowledge even without specific trainings

Adequate progress reporting management awarenesstransparency of the process

Mitigate risk of failure

Rapid implementations

Improved documentation of the project

Exhaustive testing (more and longer validations)

What is the added value?

3 current projects running on prototype – Uralsib, QBE, MUG

Prototyping already in play

Prototyping

Partial delivery

The system architecture being a major pillar of the prototyping concept

Powerful implementation tools Easy to work withEnable high level reusability

Resources availability 

20+ years experience guarantee adequate decisions towards the implementation process

What makes it possible?

What are we targeting with the prototypes concept?Competitive advantageImproved customer satisfactionIncreased maintainability by the customer

Reaching new heights

Thank you for your attention!

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