MAXLIFE: KYC

Max Life Insurance

Authors:
Ankit Gulati
Namit Airon
CLIENT DESCRIPTION

Max Life Insurance, one of India's leading life insurers, is a joint venture between Max
India Ltd. and Mitsui Sumitomo Insurance Co. Ltd. Max India is a leading Indian multi-
business corporate, while Mitsui Sumitomo Insurance is a member of MS&AD Insurance
Group, which is amongst the top general insurers in the world. Max Life Insurance offers
comprehensive life insurance and retirement solutions for long-term savings and
protection. A financially stable company with sound investment expertise, Max Life
Insurance has a strong customer-centric approach focused on advice-based sales and
quality service.

INDUSTRY / SIZE OF CUSTOMER

Max Life Insurance offers comprehensive life insurance and retirement solutions for
long-term savings and protection to over thirty lakh customers. The Company has been
one of the fastest growing life insurers, with total revenue of Rs. 6,391 crore and
enterprise profit of Rs. 733 crore for the Financial Year 2011-12. The Company's capital
base of Rs. 2,127 crore, with a solvency margin of 534% is testimony of its financial
strength and stability. As on 31st March 2013, Max Life Insurance had assets under
management of approx Rs. 23,000 crore.

PROJECT DESCRIPTION

Max Life Insurance offers a comprehensive suite of Long Term Savings and Protection
oriented products. It currently has 24 products covering and 9 riders that can be
customized to suit every life stage need of the customer. Besides this, the company
offers 4 products and 7 riders in group insurance business.

BUSINESS OBJECTIVES

The client had embarked on outsourcing the Business Consulting & Support Services,
Application Development & Application Value Management (AVM) of its different systems
by strategically engaging a technology partner.

The business drivers are:

Reduced total cost of ownership

Requirement of business and technology skills to support the application.
 Improve operational efficiency and optimize the application.
Ad hoc developments and functionality upgrades over years, without increasing the
risk of managing the application.
Delivery capabilities to meet the growing insurance market needs
Speed to market new Insurance Products .
Revamping their distribution of products through Agency and other partnerships.

NEW PROJECTS AND FOCUS AREAS:

1 SSO (Single Sign on): This project has been undertaken by Deloitte Touche Tohmatsu
Limited. This project involves integration of all the various web applications and system
applications under a common signon web application. This requirement is driven by the
company's focus on streamlining the user access of various application, which in turn
would lead to productivity improvement. Project is also focused on increased security
and increased user responsibility.
2 NWS (New workflow system): This project is mainly being built on CRMNext. Part of
the project is being developed by Cognizant also. PFB the summary of the project:

Project Component Project Requirement Project Benefit

Enablement of data
based performance
Need for a input effort tracking management, alerts
system in Front Line with a and Ensure control
Lead / Performance Management complete visibility across various and data availability
Platform sales stages for analysis
Deployment of tablet applications
for sales and recruitment
enablement (Sales app, Uniform sales pitch
Recruitment app, App Store). Ready data
Cognizant is working on availability for
development and deployment of Agents /ADMs on
Tablet based sales process Deployment these applications the go
Easy and foolproof
attendance tracking
Availability of data
for Integration and
Need for a foolproof attendance Reporting through
Biometric tracking mechanism in GOs HRMS

The roots of this project lie in a consulting assignment undertaken by Mckinsey and
Company. The objective of the consulting assignment was to improve the throughput of the
agency distribution channel. The above listed requirements are the suggestions which were
made by Mckinsey consultants.

3. Project Rakshak: This project has been undertaken by Ernst & Young. The aim of
this project is to build and operate a governance process which ensures conformity
to product norms to protect the interests of Customers , Regulator & Shareholder.
Following are the main objectives of the project:
Product Pricing and subsequent process which complete the entire product
management process and the system set up process, are having five leakage points
which has been identified from a) customer complaints and b) internal reconciliation
process and c) internal audits. The main objective of the project is conducting audits
to find out if this leakage is resulting in customers getting financially impacted.
Following were the sources for determining the revenue leakage points: Existing
identified issues, regulatory imposed fines, customer complaints, audir finding, recon
reports. Following five points were determined to be major revenue leakage points:
Procing, IRDA F&U, Policy contract, FS creation, Policy admin.
4. Group Asia: MaxLife has recently acquired Group Asia from CSC. They are in the
process of configuring the new system and migrating the customer data to the new
database. Prior to this all the group management data was being maintained in
microsoft excel.
5. SIC (System Integrity Checks): In the past one and a half year MaxLife has spent
around two crores in developing a SIC system comprising of eighty five daily SICs.
These SICs comprise of the all the important business checkpoints which are
monitored on a daily basis to report erratic system behavior and user transaction
mistakes. Cognizant and Qualtech consultants were mainly involved in development
of these SICs.
6. Business Objects: The vital reports are being migrated to Business Objects. The
project is currently being rolled out by IBM. The major focus of the same is to track
real time parameters of distribution like collection, persistency, Agent production etc.
7. Analytics: Analytics of distribution data is being handled by EXL (Inductis). At
present modeling is being done to enhance agents productivity and the parameters
guiding the agents productivity and pro-activity

Focus Areas:

1. Actuarial Management - Modelling & Valuation

2. Investment Management Trading
3. Business Intelligence Analytics, Data modelling, predictive modelling, Customer
behaviour analysis.
4. Reporting MIS, IRDA reporting & Sumitomo reporting.
5. HRMS: HR recruitment, Compensation design & optimization, Performance
management.
6. BDM: Marketing, Quality control, Six sigma.
7. Document management
8. Online: CRM, Sales, Lead generation, policy service.
9. Finance: General Ledger, Payment processing, Collection, Procurement.
10.Financial planning: Risk management, Risk framework.
 11.Core: Policy admin - better integration and centralisation, Centralised product
configurator.
12.Individual and Group reinsurance.

SCOPE OF SERVICES

Cognizant formed a team of skilled resources who can extract & develop the business
requirements, provide End to End services in Application Development and provide support
for online & batch related issues with the defined SLA for policy administration system and
pivotal.

Apart from PAS, distribution system and Money management system are the critical
systems where CBC is helping MLI through Enhancement engagements and providing
consulting for their compensation and compliance requirements.

Cognizant
PAS/Distribution Application
Business Consulting Maintenance

Application
Development

Cognizant responsibilities in Business Consulting

Gathering User Requirements

Requirement Analysis and Feasibility Study
Develop functional specification
Walkthrough of the requirement document with the development team
Perform System testing
Single point of contact for SIT/UAT and sanity testers
Consulting services for maintenance team in finalizing the solution for production
issues
Data Integrity maintenance using System Integrity Checks
 Cognizant responsibilities in Application Development

End to End services in Application Development

Product Launch
Design & Development
Testing Support
Implementation Support

Cognizant responsibilities in Application Maintenance

Primary Support for Online and Batch Issues under defined SLAs
Providing Permanent fixes
Ingenium Catalog Model
Minor Enhancements
Batch Tuning & Batch Optimization
Health Checks Preventive Maintenance

KEY BUSINESS FEATURES

The key business features of this application are:

New business Processing Application entry for Traditional, UL and Universal life
products
Policy creation through TPP (The policy processor)
Underwriting and policy Issuance
Policy & client administration
Claims Processing
Reinsurance
Distribution compensation
Distribution taxation
Distribution management
The ability to interface with other interfaces like MMMA and UCHIT etc

IMPLEMENTATION TYPE

Application Development

Application Maintenance

Business Support

Data Migration
OUR SOLUTION

Business Consulting

Cognizant Ingenium expertise team works close with the Maxlife life business team and
shows business value by providing the following solutions.

Cognizant SME team elicits the business requirements from the user through
direct User Interviews
SME team studies the existing system and structure and then Develops the
solution for the business requirement
Develop functional specifications and provides walkthrough of the requirement
with the development team
Perform System testing post development of the functionality
Single point of contact for SIT/UAT and sanity testers. Classify the defects
identified
Consulting services for maintenance team in finalizing the solution for production
issues
Develops System Integrity Checks to keep the policy data intact

Application Development

The project was implemented using the Waterfall Model of Software Development Life
Cycle (SDLC). The team encompassed of Product SMEs, Cognizant product specialists
and Cognizant product developers. The business priority was to roll out the products and
other enhancements as swiftly as possible by adopting best practices to minimize the
injection of defects.

The approaches adopted for the project implementation were as follows:

Close collaboration between all stakeholder departments (business and IT)

Functional walkthrough sessions were systematized to get a clear picture of the
business and functional requirements and to reduce the requirement
understanding gaps downstream.
Estimations were provided after thorough study of the functional requirements by
the Product SMEs and the developers.
Detailed analysis was performed on the current system functionality and was
adhered to limit the customization and to reuse the existing implementation.
Exhaustive documentation was done at all stages of SDLC.
Rigorous reviews by Product SMEs were performed on deliverables at the end of
each level of SDLC to ensure that the project remains aligned with the functional
requirements.
Clarifications that were raised to the Max life BSAs were monitored and tracked
to closure.
Extensive unit test cases were built by the developers, and after review by the
SMEs the same were executed and the end results were captured.
 The efforts, design and code review comments and the testing defects were
logged in Cognizant 2.0 portal and were tracked to closure.
Periodic meetings were held to identify the pain areas and to monitor the status
of the project.
Resolved escalated issues and provided support for SIT/UAT bug fixing and
analysis.

In addition following are some of the measures implemented to optimize cost and meet
timeline within budget

Effective knowledge sharing sessions were organized to minimize the analysis

effort.
Tools were developed to reduce certain manual efforts such as Ingenium coding
standards validation, I/O module generation and promotion form preparation.

Application Maintenance

Cognizant undertook a planned Knowledge Transition (KT) exercise to

understand the business and technology components of all systems.
The Subject Matter Experts (SMEs) from the clients' business and technology
teams were extensively involved at the KT stage itself.
Service Level Agreements (SLAs) were defined and agreed with the client
based on a Severity classification approach for all defects encountered.
The Support and Escalation Matrix was defined clearing delineating the
Cognizant and client responsibilities in Steady State.
After the initial knowledge acquisition, Cognizant undertook guided support
where the Cognizant team first assisted the existing client team in their day-
to-day operational tasks.
Then, the Cognizant team assumed complete responsibility for all Application
Value Management tasks.
Closure of Production Backlog Incidents and Problem ID from previous vendor
Solving Incident & Problem ID within the defined SLA
Preventive maintenance SIC resolution
Batch Support
SLA for CIM and ticket Closure
Impacted Policy List / SIC Query in production
Batch Tuning (Optimization, Split-up, Cleanup of Obsolete Jobs)
Accounting data Fixes in production to meet Financial year end
Permanent Resolution for Finance related issues
Efficient handling of Non-re-creatable / exception Tickets.
Minor Enhancements
Health Checks Preventive Maintenance
Support for TPP/ Web services
Dynamic procedure for repeatable issues

In addition to this,
Best practices like usage of Experience Management System is in place for
repeatable issues and data fixes
 Solid understanding of MaxLife Ingenium application through knowledge sharing b/w
development and maintenance teams

KEY DELIVERABLES / MILESTONES

Below are the key milestones that have been achieved in the journey of Maxlife

2007 2008 2009 2010 2011 2012

Engagement started by Implementation of STP, ofLaunch of Unit link

Major product launch New product launches of Functional
providing business analystDoc release, proposal form health plan & its products and its Traditional and Unit link implementation of Undo
for portfolio study in functionality newly in variants variants based on IRDA combination across Anniversary
Feb07 ingenium. Implementation of First Guidelines Major Web services Annuity product
Enhancement of partial New Unit Link product
universal life product Implementation of Implementations Enhancements
withdrawal and Indexationlaunch Development of more micro insurance NEFT Enhancements Customization of Top up
functionality Quick turnaround on CIM than 50+ FSD & CRs product Ticket Assignment on functionality in Ingenium
New product Backlog from previous
along with web service Strictly Defined SLAs email trigger Automation of death
implementation & launch vendor implementation Smooth Hand-off Redefined Threshold marking through Web
for health plans Scope Change in Ticket KT planning for web process for new limit services
Kick start for production Closure services releases Techno-BA engagements Batch Automation of
support services from Performance based pricing implementation & Extensive Root Cause for System Integrity 0201.
August07 Model development Analysis Check project. Major customization in
Providing Permanent Permanent Fixes to PS. Support for TPP Web STP, and Underwriting of
fixes Analysis and services NFO policies
Minor Enhancements implementation of BSA Engagement for System hardening
Batch Tuning batch split (executing Functional specification. through Ingenium
Batch Optimization parallel instances) Ingenium Process / Catalog
Identification and application Assessment / Clarity implementation
cleanup of Obsolete health check MACH Release
jobs Continuous System implementation for
hardening system stability
Dynamic Procs for Business Support for
repeatable data fixes products Set up
BSA support from
offshore
Ingenium Mobility
implementaiton
CLIENT BENEFITS

More discretionary spending, leading to product launches

Zero Backlog & 95% SLA, leading to happy Business team
Best Practices from CoEs incubated into Client IT team
Productivity improvements
Increase in scope of work year on year for the same contract value
Dedicated SME Support at onsite to address urgent business needs
Improved TPP skill resulting in minimal issues in TPP implementations
Quick on boarding of resources for major releases
Reduction in rework effort leading to overall increase in productivity
Smooth retrofit and promotion process; reduction in manual errors
Efficient ticket handling mechanism; Increase in ticket resolution efficiency &
quick turnaround time for resolving production issues due to major
releases/customization
Further improvement in defect density and reduction in SIT/UAT window;
Hardening of production system
Improved FSD Quality leading to quick / smooth implementation and a significant
reduction in Clarifications during the analysis phase
Efficient release management process leading to time saving on redundant
retrofit/promotion activities.
Reduction in SIT/UAT clarifications leading to better resource utilization and cost
benefit.
 MLI SYSTEM LANDSCAPE

Group Asia

Uchit TPP My Flow CRM Next

SCOPP

MFund PAS MyMoney &

(Ingenium) MyAgent

Portal
ReNova

IFTIS Prophet SUN eP3

System details:

PAS : Policy Admin (Ingenium).

MMMA: MyMoney/ MyAgent.
UCHIT : Claims Processing system.
TPP : The Policy Processor.
MyFLOW .: Flow System for policy.
CRM Next: Customer Relationship system .
Group Asia : Group PAS.
Portal: Agent and customer portal.
ReNoVA : Reinsurance system.
IFTIS : Illustration system.
Prophet: Acturial system.
SUN : General Ledger (Accounting System)
eP3: electronic Payment and Procurement system.
SCOPP : Document Management system.
MFund: Investement system.