Front-End Agility

A current news item aptly illustrates how front-end .NET technology can be used as a means to provide the kind of Web-based agility to which insurance companies aspire today.

Munich Re Canada recently entered into an agreement with MFX, a leading provider of technology and IT outsourcing solutions, to license and enhance Munich Re Canada’s current corporate primary insurance processing system. The 10-province and 50-state corporate processing system combines, in one integrated package, Web-based policy administration with claims processing, accounting and reporting, thereby providing a complete repository for corporate data.

Boasting a 70-strong staff operating out of Toronto, Munich Re Canada’s IT department is responsible for developing high-tech systems used internally throughout the Munich Re Group. Munich Re Canada is a risk partner, with gross premiums of over Cdn$479 million. The company’s IT department has been gaining notoriety within the worldwide Munich Re Group by establishing itself as only one of three centers for IT competency throughout the organization.

When Munich Re Canada opened its own Canadian insurance company in the late 1990s, Temple Insurance Company, the department implemented their internally developed corporate management system for the new insurance business based on a COBOL front-end with an Oracle back-end. Based on the positive impact of this corporate processing system, the Munich Re Group assigned Munich Re Canada the task of modernizing it with .NET technology. The idea was to further develop the system so that it could be rolled-out for use at the Munich Re America Group. With a successful implementation of the system (now known as ISyCL) at Munich Re America Group, Munich Re Canada began looking for a technology partner to work on developing, implementing and managing the system at other insurance companies.

According to Peter Walker, the senior vice president and chief information officer for Munich Re Canada, the decision to use .NET provided the flexibility that made ISyCL such a success within Munich Re America Group. “Put simply,” says Walker, “by building the system out with a .NET front-end and an enhanced Oracle back-end, we were able to ensure ISyCL would have zero impact on the workstation from which it was being accessed. A Web-based system is significantly more flexible from a programming perspective because it’s easier to modify screen and procedures within a .NET environment.”

FRONT-END ARCHITECTURE

ISyCL is a table-driven system, so most edits and codes used in the system can be adjusted to the company’s own coding structure, Walker reports. “ISyCL is not all hard-coded, so the application is also far more flexible from the user’s point of view.”

Since edits are table-driven, it’s easier to make regulatory and statutory updates as legislation or compliance needs change, Walker adds. In Canada, the system handles IBC reporting; in the United States, it takes care of ISO reporting. In addition, it’s a multi-currency system for users handling policies on an international basis.

ISyCL’s extensive reporting package is key: it provides users with about 250 standard report templates. A completely customizable declaration page is a critical component, because it enables the user to add exclusions, endorsements and other changes. The unique packaging module provides an administration tool for generating the wording and coverage of standard packages. These standard packages can be integrated into one policy; insurers are therefore provided with a shell that is completely customizable. Added to this is an accounting interface that provides invoice and statement generation.

“In addition,” Walker says, “we are working on a standard ACORD interface for bulk input of data from our clients, plus an advanced search capability for policy retrieval that can be searched by name, address or simply post/zip code.”

WEB-BASED TECHNOLOGY

According to MFX president Charles Fillizola, the use of .NET technology made ISyCL a good fit for MFX, enabling them to offer it to clients through an Applications Service Provider (ASP) model.

“MFX was formed as an independent technology company to support insurers, reinsurers, risk managers, agents and brokers with proven eBusiness solutions designed specifically for the insurance industry,” Fillizola says. “ISyCL fits in to our product line in terms of its functionality. The tremendous overall benefit for customers is that a complete suite of solutions is available from a single provider. Developing home-grown systems and managing multiple, disparate systems is not only incredibly costly, its also requires a tremendous allocation of other resources.”

Because ISyCL is a Web-based system built on a .NET platform, Fillizola says, MFX is able to outsource this product to customers through an ASP model. Improvements in Internet security and technology have led to an evolution of Web-based applications and traditional software-based applications; systems are improved by migrating them to the Web. “The .NET platform has enabled Munich Re Canada to create a fully scalable architecture with zero footprint installation on the client,” Fillizola says.

The main idea is that by outsourcing an application, clients gain a secure physical environment while at the same time ensuring the availability of the technical expertise needed to maintain their systems. “‘Pay-as-you-go’ pricing is structured based on whether our client’s business is growing or their dependence on certain systems is decreasing,” says Fillizola. “Our infrastructure outsourcing services are designed to improve and standardize existing service levels and provide a platform for future growth.”

By adopting the outsourcing model, customers can lower their costs by leveraging personnel, equipment, software and knowledge while benefiting from increased service through 24/7/365 support. All applications such as ISyCL are hosted from one of MFX’s secure data center locations, which can provide full back-up services and disaster recovery.

PARTNERSHIP

MFX’s Fillizola notes that although ISyCL is a new product, “it’s a mature technology that’s been fully road-tested at Munich Re Canada and the Munich Re America Group.” Long-term, MFX plans to leverage its technology expertise to develop ISyCL even further, by increasing its capabilities and enhancing its functionality. “Outmoded legacy systems are a drain on resources for insurers and the industry has been calling for a comprehensive, integrated insurance processing system for some time,” Fillizola says.Walker said MFX’s strong technology background, together with its experience in the insurance arena, convinced Munich Re Canada to partner with MFX to develop and implement the ISyCL system. “We are extremely proud of this application, but we won’t be resting on our laurels,” Walker says. “We look forward to working with MFX to continually evaluate, develop and improve this technology for the benefit of our customers.”