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
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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
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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.
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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
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6. Automated policy Issuance process, using Workflow
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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
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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
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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)
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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.
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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.
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