IPA Framework ACORD

Global Insurance Industry
IBM Insurance Process

Acceleration Framework
Support for ACORD
R Vinoth
Industry Solution Architect BFSI
IBM SWG WW GSI Alliances
24-Dec-10 © 2008 IBM Corporation
Insurance carriers are working to address the expectations of agents,

customers and shareholders
Customers are expecting…
Quick responses to their requests
Fast turn-around on applications and claims
Access to customer service 24x7
Ability to transact via multiple channels (e.g., internet, cell phone, telephone)
Competitive pricing and the ability to comparison shop
Agents are expecting…

Increased responsiveness to inquiries
Fast and accurate information from the insurers they do business with
Visibility to insurer processes and systems
Insurers to be easy to do business with
Innovative product offerings
Shareholders are expecting…

Reduced cost of operations
Innovation to respond to new market entrants
Flexibility to support new business models to drive growth
Ability to integrate acquisitions quickly
Management to key performance indicators
2 24-Dec-10 © 2008 IBM Corporation

Why a Framework
… but how many insurance carriers feel this pain everyday?
Self Service Underwriting Policy Administration Claims Billing New Business

Processing
Customers Regulators
3rd Party
Agents Service
Providers
Interwoven Legacy Systems

Tightly coupled program modules, most with weak cohesion
This can result in complexity at a higher cost than most companies can
afford to sustain
“About 35 percent of an enterprise’s software

maintenance budget is spent on maintaining the
multitude of point-to-point application links already
in place.”
— Gartner Group
“Forty-two percent of the almost 500 IT executives

polled said their systems were more complex than
necessary. And maintaining and managing that
excess complexity cost them an average of 29
percent of their IT budgets.”
— CIO Insight

Smart Claims
Underwriting Optimization
The Insurance Framework comprises of targeted
Agile Policy Administration
solutions for specific insurance business challenges
Product Development
Executive Insight
Work Optimization
Legacy Modernization
Core Insurance
Customer Retention &
Transformation
Growth
Single View of Customer

IBM
Insurance
Customer Distribution
Industry
Care and
Framework
Insight
Integrated Risk
Financial Planning & Performance Management Agency Collaboration
Fraud Analysis & Prevention Self-Service
Risk Compliance (incl Solvency II) New Business Streamlining
5 Operational
24-Dec-10 & IT Risk © 2008 IBM Corporation
What is the Framework? Conceptual View
The
The IBM
IBM Insurance
Insurance Framework
Framework is
is aa Foundation
Foundation
Insurance Industry Solutions
IBM
IBM Business
Business Service
Service Assets
Assets Insurance Applications
ISV
ISV Business
Business Services
Services
Process
Process Models
Models
Coordinated Data
Data Models
Models
Client-facing efforts
Insurance Framework
Insurance Industry
Framework
Business Business
Integration Optimization
IT Operations
6 24-Dec-10
Based on SOA © 2008 IBM Corporation
IBM Insurance Framework accelerates solution delivery

Example – Insurance Framework Assets, based on standards
Accelerate SOA solution

delivery with integrated
process, service & data
models Reduce manual intervention
IAA/IIW Models and transform data to ACORD
standards
WebSphere
Transformation
Implement WebSphere BPM Extender ACORD
solutions faster with pre-built Pack
WebSphere Insurance assets
Content Pack
Build components on legacy
systems faster by using IAA
models in an integrated and
Integrate ACORD electronic Insurance Transformation agile delivery platform
forms to reduce manual Workbench
ACORD eForms processing
Integrate standard data services

Reduce manual intervention
with customer data warehousing
to provide efficient XML data
capabilities
DB2 pureXML for management using ACORD
standards InfoSphere Customer
ACORD templates
Warehouse Pack

IBM Insurance Framework promotes consistency

Example – Insurance Framework Reference Architecture
Process
Contact Services
Forms Party
Center Party
Package
Create Quote
External
Custom
Legacy
Prospect New Business
Customer Pay Bill
Presentation
Components
Browser Self-Service Product
Processes
Portal Product
Services
Policy Servicing Record FNOL
Data
Agent / Broker Email Agent Process Claim Policy
Portal
Party Policy
Participants Phone
Underwriting
Pay Claim
Policy
PDA Employee
Portal Account
Claim Intake Visibility Account
Employee Services Underwriting
Partner Optimization
Partner Text Portal Billing Claims
Claim Servicing Services Claims
Message
Information Claims
Services
Regulator Electronic
ElectronicBusiness
Business Payments
Business Rule Analytics
Analytics
Gateway Marketing
Gateway Services
Integration Platform
Vendor / Partner
Systems Security
Services Technical Services
Virtualization
Services
Systems Mgmt
Services
Data
Services

The IBM Insurance Process Acceleration (IPA) Framework is an enterprise

blueprint to speed processes and facilitate innovation
Business Channels & Business Service

Participants Workplaces Services Providers
2
Prospect
Routing &
1 Assignment 4
Customer
Agent / Broker
Initialization Resolution
Employee 3
Fulfillment
Partner
Regulator
Claims Contract New Business

IPA Process Choreography and Management Underwriting
Processing Administration Processing
Framework Proof of Customer
Business models, PolicyData models
Business specific functions, Disbursements
Contents Insurance Inquiry Processing
IT-Infrastructure

The framework is made up of SOA foundational products and industry

accelerators that support GBS and business partner solutions
Solution Industry Solutions
Offerings • IBM Insurance Ops of the Future • Claims • Policy Administration • Customer Inquiry &
• IBM Self Service • Underwriting • New Business Processing Payment
IBM Assets
Insurance Process Acceleration Framework Business

Industry Extensions
Partner
• Mapping and integration of IAA models with WebSphere Modeler and Rational Software Ecosystem
Architect
• Accelerators for building services via the P&C Industry content pack
• Standards-compliant ACORD eForms
• ACORD pack for WebSphere Transformation Extender
SOA Foundation Components
Industry
DB2 WBSF ClearCase TIM/TAM Portal Server
Framework Content Manager P&C Content Pack ClearQuest TFIM Forms (ACORD
IAA/IIW Models WSRR RequisitePro Directory Server eForms)
FileNet ECM Process Server SW Architect TCAM Expeditor
InfoSphere Master WAS App Developer others depend Notes and Domino
Data Mgmt Srv Business Monitor Data Architect on HW/SW Web Conferencing
Product Center WESB Asset Mgr setup SameTime
Optim Message Broker Build Forge Quickr
Cognos Message Queuing
Information Server Product Center
WTX Insurance specific
WTX ACORD Pack content
WBM
WID
Infrastructure Servers, storage, communication networks & associated services

Frameworks give you the ability design and implement a solution with
the right tooling – and then extend that tooling to additional solutions
Benefits:
Ability to deploy solutions more
quickly
Reduced implementation risk
Flexibility in solution selection from
the IBM partner ecosystem
Greater return on your software
investment

IPA ACORD Components
WebSphere Business Services Fabric

…see how services are choreographed to enable task management
P&C Industry Content Pack
…see how services can be built more quickly with accelerators
WebSphere Modeler and Rational Software Architect
…see how integration with IAA models allows you to speed development
of solutions
WebSphere Transformation Extender Pack for ACORD
Lotus ACORD Forms

Gain early ROI with Industry Solution Assets

WebSphere Industry Content Packs for WebSphere BPM
ROI Benefit with WebSphere Industry Content Packs * Accelerates
WebSphere BPM + Industry
Content Pack
Time to Build
by 27%
WebSphere BPM
$ - $ 5 0 ,00 0 $ 1 0 0,0 0 0 $ 1 5 0,0 0 0 $ 2 0 0 ,00 0 $ 2 5 0 ,00 0
Define Solution Business Modeling & Requirements
Analysis and Design, Build and Unit Test System Test, QA and UAT
Never Start from Scratch!

– A library of SOA assets to accelerate industry solutions for Insurance,
Banking, Healthcare, Telecom & Industrial Product Lifecycle Management
Solution Assets baked in WebSphere SOA offering
– Simplify use of industry standards
– End-to-end BPM scenarios that are ready for use and quick customization
Discover and Get Started!
– Capability/Process Maps from content packs available at BPM blueworks

*As per IBM Business Value Assessment exercise; Varies as per client’s SOA solution needs, existing IT applications, etc.
Improve Time-to-Value for Insurance Solutions

Using WebSphere BPM and Insurance Content Pack
Insurance BPM Solutions Insurance assets for Product

(for Personal Lines, Commercial Management, Distribution, Policy
Lines, Life, Annuities) Lifecycle, Claims, Customer Management
Based on ACORD, IRI (NAVA), IAA,

eEG7 standards & IBM best practices
Accelerate delivery of
Extensible to customer’s business needs
WebSphere Insurance
Content Pack
Out-of-box Solution Scenario: Claims
Built & supported on Optimization/Status for Property and
Casualty
WebSphere BPM

WebSphere Insurance Content Pack

Insurance Solution Assets for WebSphere BPM
Configurable & extensible BPM solution assets for distribution, policy, claims & customer care for
Personal, Commercial & Life-Annuity LOBs; Based on ACORD, IAA, IRI, eEG7 standards
Capability Models Process Models Service Models

Capability Maps & Process Maps Process Flows & Business Service Interface & Schemas
align business strategy with Measures simulate human facilitate creation & assembly of
process execution workflows & automate processes process implementations
Based on ACORD & Based on IBM’s Best Based on IAA, IRI (NAVA)
IBM’s Best Practices Practices & IBM’s Best Practices
Common Components Business Vocabulary Business Object Models

Common Services & Utilities Repository of Business Conceptual Data Models to
enable interoperability with the Concepts, Terms & Relationships provide a foundation for
application ecosystem to ensure consistency information management
Based on ACORD and IRI Based on ACORD, IRI Based on ACORD, eEG7
(NAVA) (NAVA), IAA & eEG7 & IBM’s Best Practices
BPM Solution Scenarios

Claims Status – Includes UI Forms, Dashboards, Business Space Skins, Process Implementation

Use Insurance Capability Model to identify target business areas

• Based on ACORD Industry Standards and IBM Best Practices
• Tooling with WebSphere Business Compass; Packaged as Business Document Archive
Business • E.g. Contract Management, Billing and Payments, Claims Lifecycle Management, Claims Handling,
Leader Claims Analytics and Reporting
• Capability Maps & Process Maps

align business strategy with
process execution
• Capability maps are defined up

to level 2 and process maps up
to 2
Use Insurance Capability Model to identify target business areas

• Based on ACORD Industry Standards and IBM Best Practices
• Tooling with WebSphere Business Compass; Packaged as Business Document Archive
Business • E.g. Contract Management, Billing and Payments, Claims Lifecycle Management, Claims Handling,
Leader Claims Analytics and Reporting
• Defines level 1 and level 2

process maps
• Based on ACORD Industry

Standard

Model detailed process flows, sub processes Process Model

• Based on ACORD industry standards, IRI (NAVA), IBM IAA Models and IBM Best Practices
• Tooling with WebSphere Business Modeler; Packaged as Modeler Archive
Business • E.g. Screen Product, Check License And Appointment, Validate Customer, Enquire Bill
Analyst Information, Notify Claim, Record Loss Details
• Process Flows & Business Measures

simulate human workflows & automate
processes
• Based on ACORD process maps (Level 2)
• Optimized for deployment using WPS
mode
• Mapped to Service Interfaces and
messages to Datatype
Model detailed process flows, sub processes Process Model

• Based on ACORD industry standards, IRI (NAVA), IBM IAA Models and IBM Best Practices
• Tooling with WebSphere Business Modeler; Packaged as Modeler Archive
Business • E.g. Screen Product, Check License And Appointment, Validate Customer, Enquire Bill
Analyst Information, Notify Claim, Record Loss Details
• KPIs based on
APQC library

Achieve component
• Based on ACORD, reuse
HR-XML using
industryInsurance
standards andCommon Components
IBM Best Practices
• Tooling with WebSphere Integration Developer; Packaged as SCA Modules
Developer • E.g. Sign-on, File Extraction, Bulking, De-bulking, Not In Good Order, Validation, Rules, Error
Identification
• Common Services & Utilities

enable interoperability with the
application ecosystem
• Pre-built implementation logic
to allow custom
implementation using
configurations

Asset Navigator

Insurance Packs
ACORD
WebSphere
Transformation
24-Dec-10 Extender © 2008 IBM Corporation
ACORD
Association for Cooperative Operations Research and Development
- www.acord.org
ACORD standards are in use with insurance and reinsurance companies, agents
and brokers, financial services organizations, and software providers.
Life & Annuity

- includes Life Reinsurance and Saving vehicles
Property & Casualty/Surety
- Personal and Commercial and Surety Bonding Lines of Business
- Surety –Example: An armored car carrier that is “bonded” for $x amount.
Reinsurance & Large Commercial
- Covers reinsurance for both P&C and Life
- Reinsurance – Is where an insurer will buy insurance on insurance.
A way to share the risk.

ACORD
WebSphere Transformation Extender Pack for ACORD V1.0 provides support for:
- ACORD PCS XML
Versions 1.3.1,1.4.1,1.5.0,1.6.1,1.7.0,1.8.0,1.9.1,1.10.1
(approximately 100 type trees)
- AL3 2006 V4 type tree example
- Conversion map for AL3 to ACORD PCS XML 1.x format using
ACORD PCS V1.10.1 Schema
- Validation map utility with XML data examples for PCS
- ACORD XML V2.x Life Versions 2.15.00, 2.15.02, 2.16.90
- Sample map for TXLife 2.15.02 to X12 EDI 267 message
(267 is an individual life annuity & disability application)
The Pack contents are dependent on the ACORD XML schema. These are
available for ACORD members only and can be downloaded from the ACORD
website by members

Example AL3 format
1MHG176 6 IBM312ASTEST2 IBM312ASTEST2 APPPAC007100000203102100000000 700

20031021
2TRG212 6 70FIM71 3P PAUTO FMGIR3B MARSDO3C-1
09050310210905 0307271NBS A2003102120030727
2TCG135 3024032040920519221043020
5BIS172 1 B10001 CDoyal E Marshall MARSDO3C-1
9BIS168 1 B10001 10189 Ridge Road Downingtown VA2271296535409615287
Lauquier
5ISI183 7 B200015BISB10001 04
5GNA300 1 B300015ISIB20001 17
5GNA300 1 B300025ISIB20001 04 C
5GNA300 1 B300035ISIB20001 07 C
5BPI285 9 F100015BISB10001 5345 082036 23787 AUTOP 030727040127 00000124730
P 2007072720080127
5GIG098 3 F200015BPIF10001 ACORD90FL 020101 NN 20070101

Example of ACORD XML PCS Format
<?ACORD version="1.3.0"?>
<ACORD>
…
<InsuranceSvcRq>
<RqUID>C10C1547-D7E0-4DDE-90F3-
9443DA218AC6</RqUID>
<PersAutoPolicyQuoteInqRq>
<RqUID>D6CD84B6-1B01-48C5-8FB5-
D6BB2EFA1A40</RqUID>
<TransactionRequestDt>2006-03-
22T15:03:00</TransactionRequestDt>
<TransactionEffectiveDt>2006-01-
01</TransactionEffectiveDt>
<CurCd>USD</CurCd>
<Producer>
<GeneralPartyInfo>
( This is only a fragment )

Example ACORD XML TXLife format

<?xml version="1.0" encoding="UTF-8" ?>
<n:TXLife xmlns:n="http://ACORD.org/Standards/Life/2">
<n:UserAuthRequest>
<n:UserLoginName>DEMO</n:UserLoginName>
<n:UserPswd>
<n:CryptType>NONE</n:CryptType>
<n:Pswd>DEMO</n:Pswd>
</n:UserPswd>
<n:UserDomain>forc=YES,verb=YES,genprefix=APDMO</n:UserDomain>
<n:VendorApp>
<n:VendorName VendorCode="35">abc Life Demo</n:VendorName>
<n:AppName>abc Life Demo</n:AppName>
<n:AppVer>1.00</n:AppVer>
</n:VendorApp>
</n:UserAuthRequest>
<n:TXLifeRequest id="TXLifeRequest10">
<n:TransRefGUID>2004-1217-141016-000020</n:TransRefGUID>
<n:TransType tc="103">New Business Submission</n:TransType>
<n:OLifE>
<n:Holding id="APDMO52596">
<n:Policy id="POLICY20">
<n:LineOfBusiness tc="1">Life</n:LineOfBusiness>

“More than 80% of the processes in public and private businesses

depend on forms.” - IDC
Typical Form-Driven Processes

- Health & Safety compliance
processes
- Threat and Risk Assessment
- Supplier Management
- Leave Request and Approval
- Travel Request and Approval
- Procurement Approval
- Timesheet Recording &
Approval
- Performance Management
- Personnel Profile and Updating
- Records Management
- Contract Management
- Forms Management
- Compliant Document
Generation

The Impact of Paper-based Form Processes
Obvious costs…
-Paper and printing, transmission
-Unused form disposal
-Archival and storage costs
...hidden inefficiencies that can

paralyze organisations
-Lengthy process cycles
-Incorrect and incomplete data
-Data re-keying
-Physical routing time
-Complex approval chains
-Data aggregation across forms
-Inaccessible data
-Stove-pipe solutions for each process

eForms Spectrum - How Content and Process are Fusing resulting in Intelligent E-Form
Documents
Business Process Business Process Automation

Focused (ECM, Workflow, BCS)
Regulatory Compliance (ACORD, etc)
Store Preserve Simple Process

s Store Preserve
Value
rm
Fo View Compliance (Pixel Perfect, Sec 508)
Document
t us Fill, (Sign) & Submit Off-line
Focused Lo Fill, (Sign) & Submit
M
IB On-line
Fill & Print
Print & Fill
Print & Read
Business Process Automation

eForms Advantages
Zero footprint
Standards based
• W3C XForms, native XML increase reusability, leverages existing IT investment
Support large forms [ more than 30 pages ]

Strong security
Strong back end integration
ACORD members can download wide variety of lotus forms.
- ACORD eForms+ are powered by lotus forms
- More info visit www.acord.org

Pure XML DB advantages
XML data is stored in pure form

Supports XQuery and SQL/XML
High performance
Easy development and integration
Optimized storage model
No parsing upon retrieval
No data transformation

IPA Framework ACORD

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Global Insurance Industry

IBM Insurance Process

Insurance carriers are working to address the expectations of agents,

Agents are expecting…

Shareholders are expecting…

2 24-Dec-10 © 2008 IBM Corporation

… but how many insurance carriers feel this pain everyday?

Self Service Underwriting Policy Administration Claims Billing New Business

Interwoven Legacy Systems

“About 35 percent of an enterprise’s software

“Forty-two percent of the almost 500 IT executives

4 24-Dec-10 © 2008 IBM Corporation

Single View of Customer

Risk Compliance (incl Solvency II) New Business Streamlining

Insurance Industry Solutions

IBM Insurance Framework accelerates solution delivery

Accelerate SOA solution

ACORD eForms processing

Integrate standard data services

7 24-Dec-10 © 2008 IBM Corporation

IBM Insurance Framework promotes consistency

8 24-Dec-10 © 2008 IBM Corporation

The IBM Insurance Process Acceleration (IPA) Framework is an enterprise

Business Channels & Business Service

Claims Contract New Business

9 24-Dec-10 © 2008 IBM Corporation

The framework is made up of SOA foundational products and industry

Insurance Process Acceleration Framework Business

Infrastructure Servers, storage, communication networks & associated services

10 24-Dec-10 © 2008 IBM Corporation

11 24-Dec-10 © 2008 IBM Corporation

IPA ACORD Components

WebSphere Business Services Fabric

12 24-Dec-10 © 2008 IBM Corporation

Gain early ROI with Industry Solution Assets

$ - $ 5 0 ,00 0 $ 1 0 0,0 0 0 $ 1 5 0,0 0 0 $ 2 0 0 ,00 0 $ 2 5 0 ,00 0

Define Solution Business Modeling & Requirements

Never Start from Scratch!

13 24-Dec-10 © 2008 IBM Corporation

Improve Time-to-Value for Insurance Solutions

Insurance BPM Solutions Insurance assets for Product

Based on ACORD, IRI (NAVA), IAA,

14 24-Dec-10 © 2008 IBM Corporation

WebSphere Insurance Content Pack

Capability Models Process Models Service Models

Common Components Business Vocabulary Business Object Models

BPM Solution Scenarios

15 24-Dec-10 © 2008 IBM Corporation

Use Insurance Capability Model to identify target business areas

• Capability Maps & Process Maps

• Capability maps are defined up

Use Insurance Capability Model to identify target business areas

• Defines level 1 and level 2

• Based on ACORD Industry

17 24-Dec-10 © 2008 IBM Corporation

Model detailed process flows, sub processes Process Model

• Process Flows & Business Measures

Model detailed process flows, sub processes Process Model

19 24-Dec-10 © 2008 IBM Corporation

• Common Services & Utilities

20 24-Dec-10 © 2008 IBM Corporation

21 24-Dec-10 © 2008 IBM Corporation

Life & Annuity

23 24-Dec-10 © 2008 IBM Corporation