CSC Connect 2009 – Proprietary Driving Innovation through Connected Experiences in Insurance Don Canning Managing Director Worldwide Insurance Microsoft

CSC Connect 2009 – Proprietary

Driving Innovation through Connected Experiences in InsuranceDon CanningManaging DirectorWorldwide InsuranceMicrosoft Corporation

CSC Connect 2009, September 13-17, The Dolphin Hotel and Conference Center – Proprietary 3

Agenda•Microsoft in the Insurance Industry• Insurance Trends & Technology•Customer Experience (Portals)•Breakthrough Business Insights (BI & DW)•Cloud Computing (BPOS)•Wrap-up Q&A

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Video

Streamlining Communications in an Insurance Scenario


Better Together with Microsoft• Microsoft in the Insurance Industry has strong partnership

culture that extends the value of our platform with deep industry knowledge and expertise to deliver innovative technology that enables insurance customers to better compete and grow.

• Often carriers and distributors struggle with adoption of new technology “e.g. Changing the wheels on the buss while going 60mph…”, while managing profitability and product differentiation.

• Carriers who do not innovate “e.g. Easy to Do Business with…” for customers and distribution will drive business to competitors.


Why CSC and Microsoft?• Microsoft relationship with CSC is built on a foundation of insurance applications, business tools, technology resources that encourage new innovation, business productivity, enhanced product offerings that established a successful ongoing partner alliance.

• I ask you to consider this presentation as a starting point for discovering how carriers can solving business problems with technology, Improve profitability and how to distinguish your products and services from the competition.

• The benefits to you and your company using Microsoft’s Insurance Value Chain provides high-quality and low-cost platforms that drive improved profitability and reach new emerging markets.



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• Forth largest software spend• Customer Experience i.e.

Agent/Broker Services, UC and CRM

• Product Design & Development• Standardization e.g. OMG &

Acord• Drive the “sell-with”

opportunities with wins like Accuquote

• Mission Critical wins e.g. Policy, Underwriting and Claims Servicing

Insurance industry spend $137 billion in 2008, all-up on IT (hardware, software, IT services, internal services and telecommunications). Compound annual growth rate from 2006 through 2011 will be 5.3%.

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Global Business & IT Trends• Easy of doing business.

• Financial - growth and expense control are more important 2009.

• Conservative UW risk positions in consideration with current approaching hard market factors.

• Key IT initiatives focus on core systems, new business, data value/mastery, and speed

• Multinational Product Development Capabilities

• Increase use of analytics

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UnderwritingClaims

Policy AdminCustomer Performance

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Global P&C Lifecycle

Agent/Broker ServicesProduct Design &

Development


Insurance solutions map

5 Business Imperatives

Advisory ServicesProduct Design &

Development

Policy Administration

Customer Service

Quoting & Illustrations

Reinsurance

Underwriting

Insurance Data Warehousing

Insurance Licensing &

Compensation

Claims Servicing

Payments Services Factory

Customer & Performance

Insight

Regulatory Compliance &

Controls

Document & Records

Management

Risk Analytics & Reporting

Governance, Risk Management &

Compliance

Operational Excellence

Product & Service Innovation

Customer Experience

Corporate Performance Management

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Microsoft Insurance Value Chain:Creating an automated value chain by delivering collaboration and insight between all parties in the insurance enterprise...

• moving from disjointed business processes…to integrated applications and workflows

• industry standards and frameworks (IVCF)• …reducing costs such as maintenance while enabling

straight through processing

STP enabled by IVC

Agent/BrokerServices

Underwriting Claims ServicingCustomer & Performance

Insight

Product Design & Development

Document &Records

Management

RegulatoryCompliance &

Controls


People Ready Business in insuranceActuaries & underwriters make better risk decisionsBusiness Intelligence detecting fraud & leakage Agents can cross sell and up-sell


IVC Factory & Whitepapers

Microsoft Releases Insurance Value Chain “Factory” for ACORD Standards New IVCF Software Factory helps insurance companies integrate applications and Web services in both property and casualty and life and annuity businesses via ACORD industry standards.

Technology Plays Critical Role for Insurance Firms Seeking to Recruit and Market to Millennials, Reports New Insurity-Microsoft Survey Graying industry faces “brain drain” as nearly 60 percent of employees are now over age 45.

The Future of Insurance: Driving the Insurance Value Chain in an Uncertain World This white paper explores the trends and dynamics shaping the future of the insurance industry over the next 10 years to 15 years and discusses the technology approaches that insurers can take today to increase their ability to better contend with the uncertainties of tomorrow. Topics include “Adapting to New Business Models,” “Turning Data into Insight,” “Embracing New Delivery Models,” and “Empowering the Next-Generation Workforce.”

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Agent/Broker ServicesStraight Through Processing Personal-Lines

Agent/ Broker

Services

Underwriting

Rating &PricingEngines

RiskPrice Rules

ESB STP


Meeting the real business challenges

Agent Services

Agent /Broker Services- Multiple carrier access / CSR- Commissions & Reporting- Co-Brand Selling / White Labeling- 360 Degree view of the customerCustomer- Real-Time Pricing / and Competitor- Task Status, Claims FNOL, Billing- Policy pint, Insurance Proof - Card

LeadManagem

ent

InnovativeProducts

Real-TimeService

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CSC Connect 2009, September 13-17, The Dolphin Hotel and Conference Center – Proprietary 18BizTalk/ESB - Interoperability

Agent / Broker Distribution Ecosystem SearchBing!

Online Adverts

Social Nets

Blogs/Wiki’s

Portals

Agency

Broker

Wholesale

Real-TimeDownload

Web Services

Multi-Carrier

SOA Standards

Back Office

New Business

Policy

Claims

CSR

Rating

UW

CustomerExperience

Laptop

Smart Phone

Rich Client

Browser

Prospects CRM Customers

Products & Producers BI Risk, P&L, CSR

IM Web-Cam Unified Office Communicator VoIP, Web-Cam

SharePoint Workflow

Online Advertising

Direct

Insurance Value Chain


Differentiate with… Advertising

Web

Search

Portal

Monitor/Analyze

MarketSegmentDesign

Agent & Broker Web Sites can improve top-line growth by using Microsoft Bing Search, and see how advertisers are utilizing the power of search advertising. Type in a few key words and discover how it can work for you.

Experience the Power of NetworkingAgents /Brokers can get involved by joining a valuable extensive online network of major players including CNBC, FOX Sports, MSN Money, FaceBook and much more.

Target your audience — Determine who your targets insurance customers are, and when and where they're searching online. Reach out to affinity groups with just the right keywords.

Analyze the numbers — See how your online insurance campaigns are performing, then tweak them to make them perform even better.

http://live.com/

http://live.com/

http://advertising.microsoft.com/advertise/advertising/search/content-advertising/networks

http://advertising.microsoft.com/advertise/advertise/search/intelligent-targeting

http://advertising.microsoft.com/advertise/advertise/search/analysis-and-reporting

http://advertising.microsoft.com/advertise/advertise/search/analysis-and-reporting

http://www.microsoft.com/Presspass/presskits/bing/images/bingLogo_lg.jpg


Carriers continue to build brand awareness through tried-and-true channels such as television, but they are increasingly looking to the digital audience, via online and search engine marketing and social networking.

Best Review November 2008

Advertising; Raise, Hold or Fold?

Berkshire Hathaway continues to top advertising spending among carriers, having shelled out $264 million between January and June--a 4.4% rise over last year, according to TNS

State Farm Mutual, with $197 million in ad spending; Allstate, with $174 million; Progressive, with $163 million; and Nationwide Mutual, with $107 million in spending, TNS reports.


Auto policy purchase; direct verses internet leads

2006 2007 2008 2009 2010 2011 $-

$5.00

$10.00

$15.00

$20.00

$25.00

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2.00

4.00

6.00

8.00

10.00

12.00

14.00

Direct online auto insurance sales

Internet-generated auto insurance sales (less direct online auto insurance sales)

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| Welcome Jesse Merriam

Your Agent:Daryll McDadeStatus: Online

http://www.codeplex.com/ivc

Microsoft’s Prototype of Direct Multi-ChannelCustomer Experience

http://ivc.cloudapp.net/Default.aspx

http://www.codeplex.com/ivc

http://ivc.cloudapp.net/Default.aspx

https://www.codeplex.com/ivc



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Integration Analysis Reporting

Scorecards AdvancedAnalytics Planning

RDBMSBusi

ness

Inte

lligence

Speci

aliz

ati

on

Data

Managem

ent

Solu

tions

Analytics

Portals

Perf

orm

ance

Managem

ent

Speci

aliz

ati

on

Info

rmati

on W

ork

er

Solu

tions

KPI and management dashboards

KPIs are included to inform the business of performance against targets and can include alerts, exception reporting and diary events.

Flexible ad hoc Analysis

Users are provided with full flexibility to design views ofperformance that meet their specific requirements.

Structured reporting

An extension of traditional paper reporting thatcurrently exists in almost all organizations - enhanced via Web portals.


Document Creation

Document Management & Workflow

Business Intelligence RepositoryBusiness

Intelligence: Reporting

Sales ForceAdmin

INSURANCE SYSTEMS MAP© 2008

www.novarica.com

ClaimsDW

AgentData

CustData

CRMData

RatingData

UWData

Policy Data

Claims Data

RIData

BillgData

DisbData

GLData

Core Policy Admin System

PolicyDW

ReinsuranceManagement

Billing

GeneralLedger

Disburse-ments

Core Claims System

CRM

RatingEngine

AgentPortal

CustomerPortal

UnderwriterWorkbench

GLDW

EODETLWhy Intelligence BI Data Warehouse? The

goal of BI is to link operational activities with business strategy…

- Capture all the cross domain data, nothing is thrown away...

- Run Queries, reports on DW and DM Cubes... not on Operational 24x7 Systems...

- Regression analysis on multiple years of data...

- Capture Operational Data daily image on DW...


Business Intelligence Repository

Business Intelligence:

Reporting

AgentData

CustData

CRMData

RatingData

UWData

Policy Data

Claims Data

RIData

BillgData

DisbData

GLData

Rules MDM

Repository

Integrated / Federated Atomic Data Warehouse

GL DataMart

Claims DataMart

Policy DataMart

CRM DataMart

Producer DataMart

Ac

tua

ria

l

Excel Services /Performance Point

Enterprise Systems Bus – IVC/BAM

Office + People Ready Skills

Madison DWH



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Ron Knode, CSC Director of Cloud Computing, simplifies Cloud computing into easy to understand consumption terms;

When you need it…

Where you need it...

How Much you need…

How Long you need it…

No regrets…

Understanding Cloud computing – crystal clear!

http://www.csc.com/cloud/ds/20873-what_is_cloud_computing


CSC Vice President of Cloud Computing Brian Boruff explains the significance of the agreement with Microsoft to become a reseller of the Microsoft Business Productivity Online Suite (BPOS). This will help migrate millions of users to the cloud;

Migration Services

Integration Services

Directory Services

Identity Services (SSO)

CSC to Offer Microsoft Cloud Software Services

http://www.csc.com/video/ds/29322/29593-csc_to_offer_microsoft_bpos_software_services

Why is Cloud Computing relevant?

- Consumerization of technology on a massive scale…

- Computing power anywhere…- Collaboration…- Corporate IT Challenges…

http://www.csc.com/video/ds/29322/29593-csc_to_offer_microsoft_bpos_software_services


ClientManagement

Agency Comp& Reporting

ClientManagement

ClientManagement

Agent/BrokerServices

Dynamics CRM LiveHosted Live MeetingHosted ExchangeHosted SharePointHosted OCS

ClaimsServices

Live Mesh

Data CenterOn Premises

Software + Services

Data CenterCloud

Hydro Electric Power & Water Cooling = Cost-effective CPU Cycles



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Why CSC?... Why Microsoft?... Why Now?• I hope you now understand better Microsoft’s strong relationship with CSC that is built on a foundation applications, tools, innovation and cloud - business productivity…

• Please use this presentation and follow-up with us as a starting point for discovering how your company can solve business problems with technology, Improve profitability and how to distinguish your products and services from the competition.

• The benefits to you and your company using Microsoft’s Insurance Value Chain provides high-quality and low-cost platforms that drive improved profitability and reach new emerging markets.


© 2009 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.

The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted

to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.

Q&A?

CSC Connect 2009 – Proprietary

Don [email protected]

Documents

CSC Connect 2009 – Proprietary Driving Innovation through Connected Experiences in Insurance Don Canning Managing Director Worldwide Insurance Microsoft