The Client
One of the top 10 life and annuity providers in us offering group protection and annuity.
Client Challenges
The customer was facing many business challenges including low-interest rates which was resulting in reduced profitability from in-force policies as the original pricing models assumed higher interest rates.
- Premium growth had become stagnant, and customers did not have a data repository to do customer segmentation and profitability analysis to enable them to tap new markets and cross-sell
- Reinsurance margins were getting lower because reinsurers were leveraging analytics and quoting higher reinsurance rates
- Mortality margins were also deteriorating as a customer was not able to price the products better due to the lack of data needed for experience studies
Our Solution
An AWS cloud-based solution was implemented to create life data foundation repository. AWS Redshift was used as Data Mart and Oracle as ODS. The solution leverages Informatica BDM as an ETL tool. Data was sourced from multiple policy admin systems, claims, valuation, financial planning, underwriting workbench, and reinsurance systems. Coforge has been involved in both design and development of the solution.
Outcomes
- Centralized data repository for Life Business and unified view
- $4mn saving through reinsurance favorable outcome
- $1.5mn incremental earnings by optimizing product mix and market positioning
- $1.7mn margin preserved through enhanced policyholder retention strategy
- $2mn Reduction in labor expenses
