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Benefits from Implementing BPM Solution at a Leading Private Insurance Player

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Newgen Software Technologies Limited
Newgen Software Technologies Limited

This document discusses how a leading private insurance company implemented a Business Process Management (BPM) solution from Newgen to improve critical business processes, increase employee productivity and efficiency, and achieve operational excellence. The solution helped reduce turnaround times, processing times, and operational costs by over 50-75% while increasing employee productivity by over 70% and volumes handled by almost 300%. It provided benefits like a 135% return on investment and improved customer service quality and satisfaction. The solution automated processes like new business and policy owner servicing across 37 locations.

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Benefits from implementing BPM solution at a leading private insurance player
At a Glance Max New York Life Insurance, one of India's top private players, implemented Newgen's Business Process Management (BPM) solution to improve their critical business processes, increase employee productivity and efficiency, and achieve operational excellence. The quick implementation of the solution by Newgen ensured that the insurer started reaping benefits within the first year of deployment. Key Challenges • Processing delays and low productivity • Dependency on physical movement of documents between departments and locations • Difficulty in measuring and monitoring of performance • High operational costs • Major challenges in handling the burgeoning volume of transactions • Difficulty in meeting regulatory requirements and customer servicing timelines Key Benefits Area Benefits Increase in Employee More than 70% Productivity and efficiency Reduction in TATs, processing More than 75% time and servicing time Return on Investment of Reduction in Operational Costs Around 50% 135%1 Increase in Customer Service For both existing Quality and Satisfaction & new customers Increase in Volumes of Almost 300% transactions handled per day Reduction in Dependency on 100% physical documents 1 Refer “Methodology” section for details on how Return on Investments (ROI) has been calculated 1 of 8
Background Like other players in the life insurance industry, this insurer was in the growth phase and wanted to provide cutting edge service to their customers. With a strong quality “The continual increase orientation, the focus was on developing their servicing in the effort required for quality, turnaround time and other customer service parameters as key differentiators. Max New York Life looked servicing customer at its emerging business requirements: a new range of requests, was a major products, a new set of distribution channels, new processes and full automation of its operational processes. To keep concern for the Policy pace with its growing business requirements and aggressive growth strategy these, they decided to strengthen their Owner servicing back-office solutions and processes. This initiated the department” insurer to implement a BPM solution. Their aim was to have a solution that would not only handle existing business processes but also meet future operational demands. Key Challenges Area Key Challenges Productivity • Physical transportation of documents between departments and locations increased the waiting time before which processing could start • Delay in indentifying discrepancies as verification could only be done at the Head Office, where all the physical records were maintained • Duplication of data entry due to lack of integration with legacy applications • Low employee productivity and operational efficiency Operational Costs • Increase in cost of operations with the incremental increase in operations • High shipping and document handling cost recurring costs of couriering documents between locations/photocopying costs/printing costs • Time cost due to a long processing cycle and delays caused by unavailability of documents • High overheads on support staff and other related activities Customer Service • High turn around time to process customer requests due to complexity of requests and difficulty in retrieving relevant customer information from different sources • Difficulty in adhering to regulatory requirements in terms of servicing customer requests Document Handling • High risk of documents getting misplaced and lost inability to track documents, documents getting worn through multiple handling and couriering • Major expenses incurred in terms of infrastructure, support staff and time delays for document management Productivity Measuring • Manual process with high physical document dependency gave rise to factors beyond the control of users, which affected performance and productivity • Dependency on spreadsheets for capturing user performance data made performance tracking a cumbersome job for supervisors and managers 2 of 8
The Solution Based on Max New York Life Insurance's requirements, department is responsible for generating revenue for the Newgen developed a customized solution, consisting of the company. New Business is responsible for correct following products: assessment of each case for any additional requirement (underwriting/medical/premium amount) and ultimately • OmniFlowTM - workflow solution closure of the case through issuance of the policy. TM • OmniDocs - document management solution • New Business : The solution directly impacted issuance • OmniScan TM (OmniCapture) - image capture and time, user productivity and volumes of transactions indexing solution handled. The centralized solution has all the process rules and business logic built into its design, enabling it • Record Management SystemTM - record management to handle all kinds of complexities associated with policy solution issuance for different kinds of product categories. Processing time has reduced significantly with users The centralized solution was implemented in record time at across locations having instant access to scanned images the Head Office and in offices spread across 37 locations in of the application form and supporting documents. Role India. These locations were given web access to defined access rights ensured complete security and OmniFlow™. Additionally, certain locations specified as confidentiality. The solution attaches all the documents “Service Centres” were installed with Remote Image servers generated by the core application (counter offers, for managing locally scanned images. response letters, etc.) to the relevant work item and Max New York Life implemented Newgen's BPM solution forwards it to the next step. The users are also provided for two of its most critical processes – New Business and with additional facilities, which help in efficient load Policy Owner Servicing. POS department is responsible balancing, reduction in both document retrieval time for servicing all kinds of diverse and complex service and cost, quicker resolution of discrepancies and instant requests from existing policy owners. A customer may have tracking of case status. For managers and supervisors, one or multiple different policies. Therefore, the customer the solution helps in efficient load balancing and easier requests can vary across various permutations and productivity assessment. The solution provides complete combinations. The centralized New Business department visibility of both the process (for each transaction) and processes all new proposals at the Head Office (HO). The user performance across the organization. 3 of 8
• Policy Owner Servicing (POS): Other than being one • Display of relevant information from the core application of the critical customer facing departments, POS also reducing, information searching and retrieving time has the responsibility of ensuring compliance with • Automatic generation of relevant documents at stringent regulatory requirements in terms of delivery different worksteps of the process timelines and verification processes. The solution's rule- based workflow design has incorporated all the process • Built-in feature to help supervisors /managers allocate rules and business logic for various types of service work and ensure workload balancing requests. The solution has a user friendly interface and • Monitoring and performance measurement features various system services, which extracts and displays used for better visibility of business and user relevant customer information from the core system. performance The solution also addresses the challenges, users were facing while handling complex customer requests. Critical activities like “signature verification” of customers are now enforceable using the workflow. The flexibility of Newgen's solution ensured that any process modifications/requirements are easily incorporated in the workflow. Over 50% increase in productivity was “A highly scalable achieved as an outcome of the time saved through easy access to relevant customer information. The team's solution, allowing the performance, in terms of volumes of transaction insurer to keep handled per day, increased by more than 100%.* operations in pace with • Scanned proposals can be introduced into the workflow from any location providing instant access for processing business growth*” and eliminating document arrival waiting time Yearly Growth in Business & Number of Users (Supported by the Solution) 1,800 2500 No. of Transactions (in '000) 1,600 1,400 2000 1,200 Nos. of Users 1500 1,000 800 1000 600 400 500 200 0 2004 2005 2006 2007 2008 No of closed Transactions No concurrent of users * As per data provided by Newgen’s client 4 of 8
Automated policy Issuance process, using Workflow 5 of 8
Key Benefits and ROI Reduction in operating costs, travel and communication expenses, office stationary, infrastructure usage, printing “More than 100% increase and postage costs were some of the common direct benefits of BPM which the insurer also achieved through the in productivity level in the Newgen solution. The insurer also achieved other benefits first year of deployment, like productivity gains, reduction in IT infrastructure costs through better utilisation and reduction in timelines. exceeding 250% over the • Reduced cycle time in processing customer requests next three years.*” and issuance of new policies • Better visibility by providing critical inputs for Dashboards and MIS • Efficient resource utilization through optimized load balancing via built-in system services • Scalable solution that enables faster rollout of initiatives • More than 100% increase in productivity level in the first year of deployment, exceeding 250% over the next three years.* • Return on Investment of 180%1 YoY Productivity movement in comparison to Preimplementation Scenario of transactions closed per day per employee) Per Employee Productivity (in terms of no 40 17 35 30 14 15 14 25 20 20 7 15 13 15 10 14 4 9 5 3 0 2003 2004 2005 2006 2007 2008 POS Productivity NB Productivity 1 Refer “Methodology” section for details on how Return on Investments (ROI) has been calculated * As per data provided by Newgen’s client 6 of 8
Other Benefits • Meet compliance and regulatory guidelines and requirements in terms of TATs and verification processes “Enhanced customer • Identification of discrepancies at an earlier stage and service, better leveraging their faster resolution of team knowledge, • Improved customer satisfaction through quicker and improved employee better servicing, and reduced customer response timelines productivity Max New • End-to-end audit trails facilitating faster query York achieved it all resolution and tracking of transactions through the workflow • Enabling the deployment of dashboards and monitoring reports for senior management, needing solution” quicker access to key metrics • Reduction in administrative and infrastructure usage cost 7 of 8
Methodology The ROI calculation represents the relative value of a Benefits were calculated by quantifying the returns project's cumulative net benefits over the analysis period, achieved through TAT improvements, higher employee divided by the project's cumulative costs, expressed as a productivity and reduction in various cost heads. In case of percentage. In a formula, this can be represented as: ROI = Max New York Life, some of the benefit areas evaluated cumulative net benefit / total investments. For Max New were: York Life, the ROI it achieved from the implementation of • Resource savings – from reduced hirings Newgen's BPM solution was derived on the basis of total benefits achieved and investments made by the company • Time savings – reduction in processing time over a period of three years. • Capital expense reductions – savings in expenses such Investments includes both one time and annual recurring as facilities, workstations, rentals costs incurred by Max New York Life, for components like • Productivity benefits – increase in volumes of • Implementation, software and initial license cost, transactions processed per day • Hardware The above mentioned data and information was sourced through the following: • Maintenance and production support • Primary Research (customized questionnaire) • User training • Secondary Research (Third Party Industry Reports and Deloitte Global Benchmarks and Survey Reports) 8 of 8
Disclaimer The ROI analysis was commissioned by Newgen and has been done by Deloitte for the client provided by Newgen. The analysis was done based on data provided by Newgen and its client and Deloitte makes no assertions on the potential ROI that other organizations might receive by using Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation of the benefits that the client derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not to endorse its solutions by Deloitte. This document contains general information only and Deloitte Touché Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication. Deloitte, its affiliates and related entities shall not be responsible for any future changes or modifications done to the signed off published document. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. About Newgen Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Enterprise Content Management (ECM), with a global footprint of about 750 installations in over 35 countries. More than 100 of these implementations are large, mission-critical solutions deployed at world's leading BFSI, BPO and Fortune Global 500 companies. Newgen is recognized by distinguished analyst firms like Frost and Sullivan as A 'Hot Company to Watch for' in their global ECM Market report, 2009 and by IDC in its exclusive report “Newgen Software: Global Leader in Business Process Management and Document Management Solutions”. Newgen is a winner of prestigious award, such as CNBC-TV18, “Emerging India Award 2008”. With HSBC and SAP investment, Newgen is one of the rare product companies to have backing of both leading financial and technology companies of the world. Newgen’s Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2005. Newgen has been assessed at CMMI Level3. Corporate Office Newgen Software Technologies Ltd. Newgen Software Inc. A-6, Satsang Vihar Marg, 1364 Beverly Road, Suite 300 Qutab Institutional Area, McLean, VA 22101 New Delhi - 110 067 INDIA Tel: +1-703-439-0703 Tel: +91-11-4077 0100, 2696 3571, 2696 4733 Email: usa@newgensoft.com Fax: +91-11-2685 6936 Email: corpmktg@newgensoft.com

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Benefits from Implementing BPM Solution at a Leading Private Insurance Player

  • 1. Benefits from implementing BPM solution at a leading private insurance player
  • 2. At a Glance Max New York Life Insurance, one of India's top private players, implemented Newgen's Business Process Management (BPM) solution to improve their critical business processes, increase employee productivity and efficiency, and achieve operational excellence. The quick implementation of the solution by Newgen ensured that the insurer started reaping benefits within the first year of deployment. Key Challenges • Processing delays and low productivity • Dependency on physical movement of documents between departments and locations • Difficulty in measuring and monitoring of performance • High operational costs • Major challenges in handling the burgeoning volume of transactions • Difficulty in meeting regulatory requirements and customer servicing timelines Key Benefits Area Benefits Increase in Employee More than 70% Productivity and efficiency Reduction in TATs, processing More than 75% time and servicing time Return on Investment of Reduction in Operational Costs Around 50% 135%1 Increase in Customer Service For both existing Quality and Satisfaction & new customers Increase in Volumes of Almost 300% transactions handled per day Reduction in Dependency on 100% physical documents 1 Refer “Methodology” section for details on how Return on Investments (ROI) has been calculated 1 of 8
  • 3. Background Like other players in the life insurance industry, this insurer was in the growth phase and wanted to provide cutting edge service to their customers. With a strong quality “The continual increase orientation, the focus was on developing their servicing in the effort required for quality, turnaround time and other customer service parameters as key differentiators. Max New York Life looked servicing customer at its emerging business requirements: a new range of requests, was a major products, a new set of distribution channels, new processes and full automation of its operational processes. To keep concern for the Policy pace with its growing business requirements and aggressive growth strategy these, they decided to strengthen their Owner servicing back-office solutions and processes. This initiated the department” insurer to implement a BPM solution. Their aim was to have a solution that would not only handle existing business processes but also meet future operational demands. Key Challenges Area Key Challenges Productivity • Physical transportation of documents between departments and locations increased the waiting time before which processing could start • Delay in indentifying discrepancies as verification could only be done at the Head Office, where all the physical records were maintained • Duplication of data entry due to lack of integration with legacy applications • Low employee productivity and operational efficiency Operational Costs • Increase in cost of operations with the incremental increase in operations • High shipping and document handling cost recurring costs of couriering documents between locations/photocopying costs/printing costs • Time cost due to a long processing cycle and delays caused by unavailability of documents • High overheads on support staff and other related activities Customer Service • High turn around time to process customer requests due to complexity of requests and difficulty in retrieving relevant customer information from different sources • Difficulty in adhering to regulatory requirements in terms of servicing customer requests Document Handling • High risk of documents getting misplaced and lost inability to track documents, documents getting worn through multiple handling and couriering • Major expenses incurred in terms of infrastructure, support staff and time delays for document management Productivity Measuring • Manual process with high physical document dependency gave rise to factors beyond the control of users, which affected performance and productivity • Dependency on spreadsheets for capturing user performance data made performance tracking a cumbersome job for supervisors and managers 2 of 8
  • 4. The Solution Based on Max New York Life Insurance's requirements, department is responsible for generating revenue for the Newgen developed a customized solution, consisting of the company. New Business is responsible for correct following products: assessment of each case for any additional requirement (underwriting/medical/premium amount) and ultimately • OmniFlowTM - workflow solution closure of the case through issuance of the policy. TM • OmniDocs - document management solution • New Business : The solution directly impacted issuance • OmniScan TM (OmniCapture) - image capture and time, user productivity and volumes of transactions indexing solution handled. The centralized solution has all the process rules and business logic built into its design, enabling it • Record Management SystemTM - record management to handle all kinds of complexities associated with policy solution issuance for different kinds of product categories. Processing time has reduced significantly with users The centralized solution was implemented in record time at across locations having instant access to scanned images the Head Office and in offices spread across 37 locations in of the application form and supporting documents. Role India. These locations were given web access to defined access rights ensured complete security and OmniFlow™. Additionally, certain locations specified as confidentiality. The solution attaches all the documents “Service Centres” were installed with Remote Image servers generated by the core application (counter offers, for managing locally scanned images. response letters, etc.) to the relevant work item and Max New York Life implemented Newgen's BPM solution forwards it to the next step. The users are also provided for two of its most critical processes – New Business and with additional facilities, which help in efficient load Policy Owner Servicing. POS department is responsible balancing, reduction in both document retrieval time for servicing all kinds of diverse and complex service and cost, quicker resolution of discrepancies and instant requests from existing policy owners. A customer may have tracking of case status. For managers and supervisors, one or multiple different policies. Therefore, the customer the solution helps in efficient load balancing and easier requests can vary across various permutations and productivity assessment. The solution provides complete combinations. The centralized New Business department visibility of both the process (for each transaction) and processes all new proposals at the Head Office (HO). The user performance across the organization. 3 of 8
  • 5. • Policy Owner Servicing (POS): Other than being one • Display of relevant information from the core application of the critical customer facing departments, POS also reducing, information searching and retrieving time has the responsibility of ensuring compliance with • Automatic generation of relevant documents at stringent regulatory requirements in terms of delivery different worksteps of the process timelines and verification processes. The solution's rule- based workflow design has incorporated all the process • Built-in feature to help supervisors /managers allocate rules and business logic for various types of service work and ensure workload balancing requests. The solution has a user friendly interface and • Monitoring and performance measurement features various system services, which extracts and displays used for better visibility of business and user relevant customer information from the core system. performance The solution also addresses the challenges, users were facing while handling complex customer requests. Critical activities like “signature verification” of customers are now enforceable using the workflow. The flexibility of Newgen's solution ensured that any process modifications/requirements are easily incorporated in the workflow. Over 50% increase in productivity was “A highly scalable achieved as an outcome of the time saved through easy access to relevant customer information. The team's solution, allowing the performance, in terms of volumes of transaction insurer to keep handled per day, increased by more than 100%.* operations in pace with • Scanned proposals can be introduced into the workflow from any location providing instant access for processing business growth*” and eliminating document arrival waiting time Yearly Growth in Business & Number of Users (Supported by the Solution) 1,800 2500 No. of Transactions (in '000) 1,600 1,400 2000 1,200 Nos. of Users 1500 1,000 800 1000 600 400 500 200 0 2004 2005 2006 2007 2008 No of closed Transactions No concurrent of users * As per data provided by Newgen’s client 4 of 8
  • 6. Automated policy Issuance process, using Workflow 5 of 8
  • 7. Key Benefits and ROI Reduction in operating costs, travel and communication expenses, office stationary, infrastructure usage, printing “More than 100% increase and postage costs were some of the common direct benefits of BPM which the insurer also achieved through the in productivity level in the Newgen solution. The insurer also achieved other benefits first year of deployment, like productivity gains, reduction in IT infrastructure costs through better utilisation and reduction in timelines. exceeding 250% over the • Reduced cycle time in processing customer requests next three years.*” and issuance of new policies • Better visibility by providing critical inputs for Dashboards and MIS • Efficient resource utilization through optimized load balancing via built-in system services • Scalable solution that enables faster rollout of initiatives • More than 100% increase in productivity level in the first year of deployment, exceeding 250% over the next three years.* • Return on Investment of 180%1 YoY Productivity movement in comparison to Preimplementation Scenario of transactions closed per day per employee) Per Employee Productivity (in terms of no 40 17 35 30 14 15 14 25 20 20 7 15 13 15 10 14 4 9 5 3 0 2003 2004 2005 2006 2007 2008 POS Productivity NB Productivity 1 Refer “Methodology” section for details on how Return on Investments (ROI) has been calculated * As per data provided by Newgen’s client 6 of 8
  • 8. Other Benefits • Meet compliance and regulatory guidelines and requirements in terms of TATs and verification processes “Enhanced customer • Identification of discrepancies at an earlier stage and service, better leveraging their faster resolution of team knowledge, • Improved customer satisfaction through quicker and improved employee better servicing, and reduced customer response timelines productivity Max New • End-to-end audit trails facilitating faster query York achieved it all resolution and tracking of transactions through the workflow • Enabling the deployment of dashboards and monitoring reports for senior management, needing solution” quicker access to key metrics • Reduction in administrative and infrastructure usage cost 7 of 8
  • 9. Methodology The ROI calculation represents the relative value of a Benefits were calculated by quantifying the returns project's cumulative net benefits over the analysis period, achieved through TAT improvements, higher employee divided by the project's cumulative costs, expressed as a productivity and reduction in various cost heads. In case of percentage. In a formula, this can be represented as: ROI = Max New York Life, some of the benefit areas evaluated cumulative net benefit / total investments. For Max New were: York Life, the ROI it achieved from the implementation of • Resource savings – from reduced hirings Newgen's BPM solution was derived on the basis of total benefits achieved and investments made by the company • Time savings – reduction in processing time over a period of three years. • Capital expense reductions – savings in expenses such Investments includes both one time and annual recurring as facilities, workstations, rentals costs incurred by Max New York Life, for components like • Productivity benefits – increase in volumes of • Implementation, software and initial license cost, transactions processed per day • Hardware The above mentioned data and information was sourced through the following: • Maintenance and production support • Primary Research (customized questionnaire) • User training • Secondary Research (Third Party Industry Reports and Deloitte Global Benchmarks and Survey Reports) 8 of 8
  • 10. Disclaimer The ROI analysis was commissioned by Newgen and has been done by Deloitte for the client provided by Newgen. The analysis was done based on data provided by Newgen and its client and Deloitte makes no assertions on the potential ROI that other organizations might receive by using Newgen's solutions. Deloitte has verified the data but due to nature of the study and solution implementation timelines involved certain assumptions have been made to derive the potential ROI therefore it can impact the accuracy of the data and analysis. This case study is a validation of the benefits that the client derived from implementing Newgen solutions in its operational and business scenario and is not meant to be used for competitive product analysis. The study was commissioned only for calculation of the ROI derived from implementing Newgen's solutions and not to endorse its solutions by Deloitte. This document contains general information only and Deloitte Touché Tohmatsu India Pvt. Ltd is not, by means of this publication, rendering accounting, business, financial, investment, legal, tax or other professional advice or services. This publication is not a substitute for such professional advice or services, nor should it be used as a basis for any decision or action that may affect your business. Before making any decision or taking any action that may affect your business, you are advised to consult a qualified professional advisor. Deloitte, its affiliates and related entities shall not be responsible for any loss sustained by any person who makes decisions based solely on the information present in this publication. Deloitte, its affiliates and related entities shall not be responsible for any future changes or modifications done to the signed off published document. About Deloitte Deloitte refers to one or more of Deloitte Touche Tohmatsu, a Swiss Verein, and its network of member firms, each of which is a legally separate and independent entity. Please see www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu and its member firms. About Newgen Newgen Software Technologies Limited is the market leader in Business Process Management (BPM) and Enterprise Content Management (ECM), with a global footprint of about 750 installations in over 35 countries. More than 100 of these implementations are large, mission-critical solutions deployed at world's leading BFSI, BPO and Fortune Global 500 companies. Newgen is recognized by distinguished analyst firms like Frost and Sullivan as A 'Hot Company to Watch for' in their global ECM Market report, 2009 and by IDC in its exclusive report “Newgen Software: Global Leader in Business Process Management and Document Management Solutions”. Newgen is a winner of prestigious award, such as CNBC-TV18, “Emerging India Award 2008”. With HSBC and SAP investment, Newgen is one of the rare product companies to have backing of both leading financial and technology companies of the world. Newgen’s Quality Systems are certified against ISO 9001:2008 and Information Security Standard, ISO 27001:2005. Newgen has been assessed at CMMI Level3. Corporate Office Newgen Software Technologies Ltd. Newgen Software Inc. A-6, Satsang Vihar Marg, 1364 Beverly Road, Suite 300 Qutab Institutional Area, McLean, VA 22101 New Delhi - 110 067 INDIA Tel: +1-703-439-0703 Tel: +91-11-4077 0100, 2696 3571, 2696 4733 Email: usa@newgensoft.com Fax: +91-11-2685 6936 Email: corpmktg@newgensoft.com