Development of insurance information systems
The global trends in the development of the insurance market today are:
• Global economic integration, the globalization of products, services, labor markets.
• Reducing barriers to market entry and business migration, mergers and acquisitions.
• Reduction of product, strategic and process cycles.
• Increased requirements for information transparency while requiring confidentiality and security.
• Growth of the global class of consumers, increase their awareness and expectations.
• Enhancing the role of the state and supervisory bodies, tightening regulatory requirements.
• Transition to the service architecture, increasing the need for complex solutions, increasing the volume of information to be processed.
The key to success for improving the quality and accessibility of a wide range of customers insurance services are information technology.
The main features of modern SD IC:
• Support for increasing amounts of stored and processed data;
• full coverage of the insurance company;
• support and reengineering of business processes of insurance activities;
• Complication of methods and algorithms for making managerial decisions;
• independence from the location of the structural units of the insurance company;
• ensuring interactive interaction between participants in the insurance process, etc.
In insurance companies, analytical and strategic procedures, such as actuarial calculation methods, modeling of tariff rate norms, are gaining in importance. The SD should provide an effective tool for the creation of functional blocks "know-how", analysis, modeling, forecasting the development of business processes of insurance activities, developing scenarios for making managerial decisions.
Openness And With SD should ensure the possibility of its modification and development, adaptation to the constantly changing business requirements. Alongside with the specialization of software systems of ICSD, but to types of insurance (medical insurance, "auto citizen", etc.), the development of corporate information systems for managing insurance activity is enhanced.
The world leader in the development of software for corporate information systems, SAP offers its solution for managing the insurance company and its business - SAP for Insurance. The architecture of thisThe system is shown in Fig. 17.11. Basic control loops and modules of the SAP for Insurance system:
1. The directory of business partners will give a full description of their activities on the market, provides the integration of data from various insurance subsystems.
2. Management of insurance contracts and products includes:
• Contract Management - contains a basic part that contains policy management functions common to all types of insurance and instruments, and extensions corresponding to different types of insurance automate predefined business processes;
• Managing Policies and Products - realizes the functionality for specific types of insurance - life, property and accidents, car insurance, etc., maintaining a life insurance policy in which one or more people are insured against one or several risks, taking into account different categories of risks and reimbursements (lump sum payments, annuities, exemption from payment of insurance premiums upon the occurrence of specified events), supports the whole complex of actuarial calculations.
Fig. 17.11. The architecture of the IS SD based on SAP for Insurance
3. Loss Management - tracks relationships with customers, which are aimed at preventing losses due to fraud. Direct access to external services (service stations, expertise services, etc.), calculation of insurance compensation and creation of reserves, sale of property balances, etc. is provided. At the end of the loss adjustment cycle, data for payment of insurance compensation can be automatically transferred to the existing one insurance company payment processing subsystem and the general ledger.
4. Commission management includes:
• Manage commissions - Processing of commission fees (sale of a new policy, prolongation of a previous agreement, additional agreement or provision of consultations, etc.), standard templates of commission contracts, support of versioning of contracts. The module is integrated with the "Fees and Payments" module, other external applications for making settlements,
• Reinsurance - Supports work with all types of contracts: incoming and outgoing reinsurance, facultative, obligatory and optional obligatory reinsurance, proportional: quota and excess reinsurance - and disproportionate: reinsurance of excess losses and reinsurance of excess loss reinsurance. It is possible to create complex scenarios for conducting electronic business between brokers, direct insurers, reinsurers and other business partners.
5. & Fees & Fees - monitors the financial aspects of interaction with counterparties through integration with contract accounting systems, losses, commission calculation, reinsurance, interaction with external insurance systems. You can enter additional user-defined analytical features (account group, insurance type, customer group, etc.), transfer the summary information to the general ledger.
6. Investment Management - designed to automate the work of investment departments of insurance companies, provides increased efficiency in the use of financial assets of the insurance company.
Secured transaction management, investment analysis (return on assets portfolio, risk analysis), includes:
• Manage Transactions to manage their own financial transactions of the company through financial instruments: money market operations, currency transactions, securities transactions, derivatives. The module automatically generates financial documents in accounting in several areas of accounting: accounting under national regulatory requirements, according to IAS or US-GAAP standards, according to internal accounting rules;
• Profitability Management for the modeling of cash flows but for any financial instruments, calculation of financial indicators (costs, incomes, etc.) and transfer rates, taking into account the profitability of each financial instrument for any period of time. Methods for calculating various profitability indicators have been developed;
• Credit Risk Management to limit credit risks and their monitoring in real time in accordance with the methodology used by the insurance company (product limit, division, individual trader, combination of selected transaction indicators);
• Managing Market Risks to monitor market risks using calculation techniques and modeling scenarios, indicators (historical modeling method, Monte Carlo method, variation/covariance method, etc.) in order to provide support for the "back output" to confirm the correctness of the methodology used to calculate risks.
7. Analytics and reporting are represented by the Business Intelligence component (SAP BI), which provides collection, storage and processing of business information to create an accurate picture of the activities of the insurance company and make informed management decisions. With this module, an analytical decision support system is created that has an open, extensible architecture. The module uses a specialized Business Information Store (SAP BW), provides support for all basic data operations using Business Objects tools (extraction, transformation and data loading - ETL), information models, reporting tools and output visualization.>
8. Sales support and service functions are implemented using the module "Customer Relationship Management". The collection of information about clients is organized, the knowledge gained allows building mutually beneficial relations with customers. Data mining technology provides modeling of customer behavior, profitability analysis, valuation of loyalty, etc., which provides the creation of benefits for the insurance company. Operational tasks of customer relationship management:
• Increase the effectiveness of marketing activities through marketing planning and management of marketing campaigns; by managing potential transactions; segmentation and personalization of the client base;
• Increase sales by improving the work with key customers, managing incentives for employees, modeling and forecasting sales;
• Improving the quality of customer service by increasing the efficiency of the call center, providing support for the mobile employees in direct contact with customers.
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