Insurance Solutions

Presenters Name Presenters Title

Safe Harbor Statement

The following is intended to outline our general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, or functionality, and should not be relied upon in making purchasing decision. The development, release, and timing of any features or functionality described for Oracles products remains at the sole discretion of Oracle.

Agenda

Leadership in Insurance Innovation in Insurance Solutions Results Achieved by Oracle Customers

Oracle in Insurance

Did You Know?

20 of the top 20 insurance companies run Oracle Applications

1,000+ insurance companies run Oracle Applications

12 of the top 15 life insurers in the world run Oracle Applications

The Challenges Were Hearing

Grow Business & Optimize Distribution
How can I increase the effectiveness and diversity of my distribution channels and policy service operations?

the big challenge is now to double our effort and focus on operational excellence and growth. -- James Schiro, CEO, Zurich Financial Services, January 2006

Compliance & Regulatory Pressures

How can my organization meet increasing national and regional insurance department regulatory compliance demands?

In early 2005, the four largest brokerage firms negotiated regulatory settlements concerning, among other things, their compensation practices. Following their settlements, some firms altered their long-standing practices and restructured their operations. - HRH 2005 Annual Report

The Challenges Were Hearing (contd)

Scale Costs & Price Products to Market Opportunity

How can I improve combined ratios while providing greater value to our customers and still achieve continuous growth?

A chasm is growing between insurers using state-of-the-art analytics and those who arent The haves will be able to write business at the margins they target. The have nots will fall victim to adverse selectionthe bar will rise continually as competition drives weaker players from the field. -- Frank J. Coyne, chairman, president and CEO, ISO - ISOtech, 2006

Industry Quotes
Oracles Siebel Insurance Claims is an interesting choice for a mid-size to large insurer. It represents a combination of basic and extended claims functionality-extended with Siebel and Oracle components. It also brings a good deal of prepackaged functionality, with rules,scripting, and performance reporting capabilities. Donald Light, Insurance Analyst

"They (Oracle) have been very acquisitive in the last couple years, It's a good move for Oracle, buying both PeopleSoft and Siebel, in that it does give them that vertical presence.
Marc Cecere , VP Insurance Practice

Oracles PeopleSoft Enterprise General Ledger provides an established, well developed set of capabilities within a broad and deep family of other accounting, financial, human resource, and supply chain applications.
Donald Light, Insurance Analyst

Agenda

Leadership in Insurance Innovation in Insurance Solutions Results Achieved by Oracle Customers

Oracle Insurance Solutions

Bringing a comprehensive, end-to-end solution to the insurance industry
Business Intelligence Sales, Service, & Marketing Risk, Compliance & Performance

HCM & Financials

Core Systems

Technology & Architecture

Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform

Increasing Revenue through Distribution Management and Customer Service

Requirement
Manage Multiple, Complex Distribution Relationships Support Balanced Marketing Campaigns across Agent, Broker, and Direct Channels, plus Streamline Lead Mgmt Increase Insurers Understanding of Customers, Market and Distribution

Oracle Capability
Oracles Siebel Insurance Partner Management

The Oracle Difference

Oracle Manages Agent, Broker, Customer and Policy Information Consistently and Securely Cross Channel Only Oracle Provides Multichannel Campaign Support with Integrated SFA and Customer Analytics Oracle Offers 140+Insurancespecific Dashboards, 200+ Reports and Objects to Analyze Key Customer Data Oracle Enables Collaboration Bet. Agents, Call Center and Policyholders with Real-Time Decisions for Cross-Sell / Upsell

Oracles Siebel Marketing & Siebel Insurance CRM

Oracle Business Analytics and Universal Customer Master for Insurance

Enable Multi-Channel Service for Distribution Partners and Customers

Oracles Siebel Call Center for Insurance Service

Example:

Distribution Management
Oracles Siebel Insurance Oracle Siebel Call Center Oracles Siebel Marketing Analytics

Web Services

Comprehensive Distribution Insight and Management

Siebel Insurance CRM/PRM
Sales Process Mgmt Rapid Product Rollout Sales/Partner Credentials Book of Business

Siebel Marketing
Customer Segmentation Program Management Channel Marketing Results Tracking

Siebel Insurance Service

Caller Profiles Automated Screen Pops Interaction Logging Task-based UI Manage Escalation Managed Self-Service

Oracle Business Intelligence

Customer Knowledge Channel Profitability Product Profitability Market Insight Insurance Dashboards

COMPANY OVERVIEW Johannesburg, South Africa Annual revenue: $10 B

CHALLENGES / OPPORTUNITIES Overwhelmed with paper Outmoded, paper-based sales processes hindered effective management of sales opportunities Wanted to improve consistency and quality of customer service

CUSTOMER PERSPECTIVE One customer was delighted recently when, having submitted a claim online, he received a call from one of our agents a few hours later to correct an error made on the form. It is instances like this that seal our reputation for outstanding customer service. Johan Reyneke, Managing Director RESULTS Reduced time to transfer leads from bank to brokerage from 3 days to seconds Increased penetration for home insurance from 15% to 65% Increased penetration for motor insurance from 18% to 40% Enabled accurate, near time forecasting Provided a single, 360-degree view of customer relationships to 200 sales staff and 45 customer service reps

SOLUTIONS Oracle Siebel Insurance

Oracle Insurance Solutions

Bringing a comprehensive, end-to-end solution to the insurance industry
Business Intelligence Sales, Service, & Marketing Risk, Compliance & Performance

HCM & Financials

Core Systems

Technology & Architecture

Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform

Enable Flexible and Efficient Policy Lifecycle Management

Requirement
Rapidly Issue and Administer Insurance Policies

Oracle Capability
Oracles Policy Admin System for Life, P&C, and Reinsurance

The Oracle Difference

Only Oracle Provides Complete Policy Lifecycle Component Solutions Deployed on a Modern, Enterprise Architecture Only Oracle Personalizes the Claims Process and Reduces Cost through Process Improvement Oracle Uniquely Integrates Account Current Insurance Billing, Configurable Lapse Processing, and InsuranceSpecific Accounting Rules Oracle Provides the Most Complete ACORD-Compliant Toolkit to Deploy Secure, Stable, Business Oriented SOA ACORD Architectures For Insurers

Reduce Claims Expense while Improving Customer Interaction Experience

Oracle Insurance Claims, Content Services

Support Complex Direct and Agent Billing

Oracle Insurance Billing, EBS Financials, PSFT Financials, FSAH BPM, BEPL, Business Process Analysis Suite, Content Services, Identity Mgmt, App Server

Support Integrated, Auditable, Paperless Enterprise Business Processes

Example:

Policy Lifecycle Management

Oracle Insurance Policy Administration Siebel Insurance Oracle Insurance Billing Oracle Customer Data Management

Web Services

End-to-End Insurance Policy Lifecycle Management

Siebel Insurance

Oracle Policy Administration

Oracle Insurance Billing

Individual & Group Bills Account Current Agency Bill Rules-based lapse Financial Integration

Oracle Customer Data Management

Maintain hierarchies and complex relationships Centralize customer data Scrub customer information

Sales Process Mgmt New Business Rapid Product Rollout Processing Sales/Partner Credentials Policy Issue Book of Business Cycle Processing Flexible policy rules Financial Integration

Example:

Enterprise Claims Management

Oracles Siebel Insurance Claims Oracle Content Services Financial Services Accounting Hub Financials & Performance Management

Web Services

Relationship Driven, Integrated Claims Management

Siebel Insurance Claims
First Notice of Loss Process Management Fraud Detection Partner Integration Claims Resolution

PeopleSoft Financials
Claims Reserve Accting Financial Reporting Claims Performance Payment & Fulfillment

Financial Services Acct Hub

Reserve Management Detail Transactions Support Legacy Claims Systems Multiple Ledger Support

Oracle Content Management

Store/Manage Docs Account Level Retrieval Enterprise CM Strategy Compliance Support

Motorists Mutual
COMPANY OVERVIEW Headquartered in Ohio Revenue of US $1.5B CHALLENGES / OPPORTUNITIES Information scattered across 28 apps resulting in lengthy claims resolution Consolidating data from disparate systems - including claims, billing, and policy-management systems - would provide claims unit with a single, real-time view of customers claims file and enable increase in process automation SOLUTIONS Oracle Siebel Claims Implemented in claims center with 250 claims specialist and managers Used to manage end-to-end claims process from FNOL, to adjuster assignment to subrogation and legal CUSTOMER PERSPECTIVE We have seen about $1 million in annual expense reduction as a result of Oracles Siebel Claims Implementation. Some of the benefits or our implementation are reduce staff, leakage, paper and improve agents productivity. Dave Kaufman, Senior VP and CIO

RESULTS Realized substantial productivity gains Reducing process expense (ongoing) Closed a branch office and reduced facilities expense

Oracle Insurance Solutions

Bringing a comprehensive, end-to-end solution to the insurance industry
Business Intelligence Sales, Service, & Marketing Risk, Compliance & Performance

HCM & Financials

Core Systems

Technology & Architecture

Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform

Improve Corporate Governance through Business Intelligence & Enterprise Risk Mgmt
Requirement
Provide Actionable Customer & Product Profitability Insight

Oracle Capability
Customer & Product Profitability Engine (EPM, OFSA)

The Oracle Difference

Oracle Has a Fully Scalable Solution to Compute Individual Customer Profitability Delivered in Operational and Executive Dashboards Only Oracle provides Integrated Analytics Dashboards to Monitor Both Financials and Real-time Operational Process with Insurance-Specific KPIs

Deliver Financial & Operational Business Transparency

Oracle Business Analytics Balanced Scorecard with Insurance Data Model

Be the Foundation for Regulatory Compliance to Meet State & Federal Regulator Needs

BPEL, BPM, Internal Controls Manager, ICE, Stellent Content Mgt, Financial Services Accounting Hub

Oracle Delivers the Most Comprehensive Platform for Deployment of Transparent, Auditable and Bulletproof Insurance Processes

Example:

Compliance, Enterprise Risk & Performance

Extending business intelligence across the enterprise

Databases

BI Dashboards

Analytics Server

Analytic Engines Data Warehouse

Reveleus Ops Risk

Solvency II compliance Operation Risk Modeling Risk & Compliance Reporting platform

OFSA Profitability Management

Complete profitability suite Integrated with risk and finance solutions Multi dimensional profitability

Financial Services Acct Hub

Next generation accounting rules engine Fully integrated with Oracle GL

Oracle GRC Manager

Enterprise Business Process Management\Consolidat ed data repository Embedded internal controls

First Fire & Marine Insurance

COMPANY OVERVIEW Headquartered in Seoul, South Korea Revenue: Over US $100M CUSTOMER PERSPECTIVE Risk management encompasses more than just capital management; it is about managing overall company value. This means companies need to shift their focus from short-term profit maximization to longterm value. First Fire & Marine Insurance has laid the groundwork for value management by implementing Oracle Risk Manager on Oracle Database. Dong-Young Lee, Team Mgr, Risk Mgmt RESULTS Established a stable, secure market risk management system Optimized business information and risk management through property and debt analysis Ensured quick response to oversight agencies

CHALLENGES / OPPORTUNITIES Has seen significant growth in the online car insurance market and has responded by expanding its range of products and services Effective asset and liability administration is essential in Koreas fluctuating business environment

SOLUTIONS Oracle Risk Manager Oracle Database Deployed In 2003

Oracle Insurance Solutions

Bringing a comprehensive, end-to-end solution to the insurance industry
Business Intelligence Sales, Service, & Marketing Risk, Compliance & Performance

HCM & Financials

Core Systems

Technology & Architecture

Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform

Provide Efficient and Effective Operational Support

Requirement
Increase Employee / Agent Knowledge and Retention while Reducing Training Cost

Oracle Capability
PeopleSoft Human Capital Mgmt, EBS Human Resources Mgmt, Learning Management

The Oracle Difference

Oracles Leadership and Experience in Learning Mgmt Reduces Agent Training Costs and Increases Agent Value and Retention Only Oracle Has the Multi-GAAP/STAT and XBRL Support Required to Meet Global Insurance Industry Reporting Requirements

Manage Statutory and GAAP Environments to Support Global Insurance Reporting Requirements

PeopleSoft Financial Management, EBS Financials

Manage Multiple Financial Environments for Multi-line Companies Globally

Oracle Financial Services Accounting Hub, Consolidation Hub, Global Consolidations

Oracles Unique Offering Can Help Insurers Manage Multiple Financial Environments and Multi-Point Admin System Integration

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Example:

Enterprise Financials Management

Applications for the high-performance enterprise
Manual Entry
Dr Cr

Open Interfaces / API Excel (Web ADI)

Subledger Invoices & Documents

General Ledger

Subledger Accounting

Receivables

Payables Online Reconciliation Reporting

Enterprise Financial Mgmt

Automated financial processing Account for multiple, heterogeneous sources Enhance internal controls and auditability

Oracle Business Intelligence

Align Operations with Corporate Strategy Manage Risk Proactively Collaborate Across the Enterprise

Oracle Procurement
Reduce Spend on Goods and Services Streamline Procurement Enforce Policy Compliance

Enterprise Asset Management

Improve asset visibility, tracking, and control Optimize asset portfolio management

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COMPANY OVERVIEW Headquartered in Zurich, Switzerland Revenue: CHF 100 million Employees: 9,000 CHALLENGES / OPPORTUNITIES Lacked an integrated financial package Required huge manual effort to calculate asset depreciation and other key financial measures that make up the expense to premium ratio, critical to insurance reporting and strategic management planning SOLUTIONS Oracle E-Business Suite General Ledger Accounts Payable Fixed Assets

CUSTOMER PERSPECTIVE We are examining our internal processes and developing new ways of thinking. Oracle is playing an important role in that process." Liz Catchpole, CFO, Life & Health Business

RESULTS Reduced manual process and increased direct process controls Instituted automated payment runs Automated expense reporting. Reduced training time and costs for accounting staff Redeployed staff to more strategic activities

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Oracle Insurance Solutions

Bringing a comprehensive, end-to-end solution to the insurance industry
Business Intelligence Sales, Service, & Marketing Risk, Compliance & Performance

HCM & Financials

Core Systems

Technology & Architecture

Increase Revenue through Distribution Management and Customer Service Enable Flexible and Efficient Policy Lifecycle Management Improve Corporate Governance through BI and ERM Provide Efficient and Effective Operational Support Enable Next Generation Insurance Technology Platform

26

Enable Next Generation Insurance Technology Platform

Requirement
Enable New Services Across Product Silos

Oracle Capability
Service Enabled Processes and Applications

The Oracle Difference

Integrated Service-Oriented Architecture & ACORDbased Models for Insurance

Gain Real-time Insight Across Channels

Business Intelligence for Insurance

Integrated Insurance KPIs and KRIs from Multiple Legacy Sources

Secure Customer Data and Access for Risk and Compliance Reporting

Enterprise Security and Identity Management

Integrated Data and Identity Management for GLBA, Patriot Act and SOX Compliance

Selectively Consolidate Legacy Systems onto Open Standard Platform

Enterprise Grid Computing and Content Management

Manage Structured & Unstructured Data with Scalable and Reliable Grid Technology

Oracle Fusion Middleware

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Farmers Mutual Hail

COMPANY OVERVIEW Headquartered in West Des Moines, Iowa Revenue: $224 Million Employees: 207 CUSTOMER PERSPECTIVE Cisco and Oracle Fusion Middleware enabled us to automate business processes and increase security by providing our policy holders and agents with an automated selfregistration process. Ron Rutledge, VP, Information Services RESULTS Provide agents and customers direct access to policy information Deliver self-service and customer provisioning to users Consolidated existing business processes Improved security, enhanced efficiency and reduced cost through automated access privilege management Integrated disparate workflows into a single, visible and easily extensible business process

CHALLENGES / OPPORTUNITIES Needed to provide a more efficient, simplified process to grant policyholders and insurance agents secure access to policy information Manual transactions were time-intensive and raised operational costs

SOLUTIONS Oracle Fusion Middleware-based online portal Implemented with help from Cisco

Solutions Map Overall View

Oracle Solution Footprint

Front Office Support Marketing Automation Sales Force Automation Insurance Operations Strategic Planning Policy Administration Payments & Disbursements Product Development Billing & Collections Vendor Mgmt. & Procurement Analytics

Oracle

ISV Partners

Partner Management

Customer Service

Sales Marketing Channel Claims Operations Procurement

Distribution Management Investment Management Reinsurance Management

New Business Claims Processing Regulatory Reporting

Enterprise Performance Mgmt Financial & Risk Planning

CPM

Financials

Indirect Procurement

Corporate Administration Facilities Human Management Resources IT Infrastructure Business Activity Monitoring Web Services Management Enterprise Content Management Database [Grid, Memory, Embed]

Projects

Compensation

Helpdesk HR IT

Analytic Services, Portal & Dashboards Business Process Analytics Universal Customer Master (MDM) Systems Management Directory Svcs

Rich Client Framework (AJAX, Web 2.0) Web Services Orchestration (BPEL) J2EE Services, ESB and Rules Engine Identity Mgmt Access Mgmt

Top to Bottom Support for Insurance

#1 Enterprise Software Vendor
Consulting

ERP, CRM, HR and more Most scalable, reliable, secure infrastructure Most complete range of on-demand and on-premise
deployment options

Applications

Built-In Insurance Capabilities

Tools / J2EE

Fusion Middleware

Customer focused claims management Real-time insurance fraud detection Insurance analytic dashboards and industry KPIs Closed-loop insurance distribution management End-to-end insurance process support

Database

Largest Software Support Team

Operating System

3,000+ support engineers 145+ countries

The Oracle Difference

Only Oracle

Is the leading provider of customer-centric Insurance solutions with

complete front office agent / broker and customer management support including real-time distribution analytics and book of business support

Brings true customer-focus to the insurance claims process while providing a

complete front to back claims solution including predictive modeling, fraud detection and reserve/payment management

Solves the most complex Insurance Billing problems through

intelligent bill reconciliation and rules-based bill management and regulated arrears processing

Enables insurers to regulate, audit and manage business processes and

information to meet global compliance regulation

Provides the comprehensive toolset to deploy real Insurance SOA

architectures today

Agenda

Leadership in Insurance Innovation in Insurance Solutions Results Achieved by Oracle Customers

What Customers are Achieving

Enabled agents to secure 1300 incremental appointments each week

Increased the percentage of requests closed the same day by 20% in 12 months Improved productivity in the claims area by 25% Reduced costs by an estimated US$15.1 million by automating manual tasks and eliminating redundant processes

Oracle Insurance Solutions Summary

Distribution Management and Service Policy Lifecycle Management
Manage internal and external distribution networks Provide insight into distribution profitability Enable multi-channel customer service Deliver end to end, customer-centric claims management Provide enterprise billing and commission management
with vertical process functionality Enable comprehensive business process management

Governance and Compliance Effective Operational Support Next Generation Technology Platform

Support auditable, automated enterprise business processes Provide detailed financial & operational business insight Deliver actionable customer & product profitability insight Increase agent/broker knowledge & reduce overhead costs Deliver financial results in industry formats Connect Financials to better measure & monitor results Accelerate development of new services with a open
standards based insurance platform Improve agility with capability to create flexible composite applications