Today’s insurance customers expect simplified products that reflect their current life circumstances and digital services that anticipate how their needs will change. They want convenient self-service options, approval of applications and claims in hours instead of days, and 24/7 transparent interactions across any channel.
Cognizant Digital Life & Annuity addresses these challenges, enabling your organization to connect directly with customers more effectively, streamline operations, consolidate systems and accelerate time to market at scale—all while reducing operating expenses. We bring deep insurance expertise and an extensive portfolio of digital tools and automation to our clients. More than 30 leading L&A providers rely on Cognizant to make their critical processes run smoothly. We routinely reduce total cost of ownership by up to 50%; reduce inter-operator variability by 20% and through standardization, we typically increase time to market by 22% or more.
Research by Cognizant, JD Powers and others confirm that insurance companies need to address current market trends:
A U.S.-based life insurance and investment company struggled with disparate, and often duplicative, legacy systems as a result of a series of mergers and acquisitions over many decades. Half of the supported 13 policy administrative systems were outdated, nearly 70 percent of which posed potential non-compliance and other business risks. A complicated IT landscape and high operating expenses further reduced the company’s ability to fund new product research and hindered its move to a modern, digital environment. The company turned to Cognizant, its long-time IT partner, for a solution to simplify its IT landscape.
Cognizant proposed building a proprietary solution based on a business process as a service (BPaaS) approach—to be hosted and maintained by us—that the company would agree to use for a specified time. Such a solution would enable the company to save money, help protect its intellectual property and boost its technical currency. The solution we built—LifeAdmin Core™, powered by Oracle Insurance Policy Administration (OIPA)—was one of the first BPaaS solutions in North America designed specifically for the life insurance industry. We selected OIPA because of its simplicity and capability to protect the company’s intellectual property. LifeAdmin Core’s flexible, rules-based policy administration solution automates business processes and supports rapid deployment, enabling faster product launches and reducing total cost of ownership. Cognizant also manages standard compliance changes globally, at the platform level, which further helps mitigate business risks.
At the close of the second year of a six-year engagement, Cognizant had migrated two of the company’s largest applications. Migration of a third application is expected to be completed in the coming months. As these three applications comprise 75 percent of the total policy volume, a major portion of the company’s customer policy data will have been moved from the legacy platform to LifeAdmin Core. This puts the company in a better position to enhance its customer service and use new digital technologies to improve customer satisfaction while Cognizant continues to move the rest of its applications to the single, modern platform.
reduction in operating costs
reduction in price per policy
of the company’s largest applications migrated