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| Thought Paper |
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Practical Models for New Business STP |
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| Abstract |
Market demands and competition has put constant pressure on Insurance companies to
acquire new business. Increased efficiency, scalability and flexibility of the business
process applications have become a necessity for the insurers. However, the IT
infrastructure of most insurers is not geared to handle these improvements as their
systems are minimally integrated, minimally automated, or a blend of both.
In such a scenario, a technology framework called Straight Through Processing (STP) can
help insurers streamline business processes. STP applies enabling technologies like
document imaging, rules engines, and workflow to automate new business processes. As
noted in a recent Gartner report on insurance STP, adoption of STP techniques can offer
insurers a host of benefits, including bottom-line cost savings, top-line revenue growth,
and improved customer and producer satisfaction. Many life insurance companies are
now adopting STP for new business.
This paper will explore the business drivers for new business straight through processing,
and the application of automation components such as rules engines, rating engines and
workflow engines in building an STP solution for efficient underwriting. This paper also
presents a set of pragmatic process models that can help insurance carriers transition IT
systems, and ultimately reap the benefits from new business STP.
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