Allianz SE Reinsurance Branch Asia Pacific Systems Requirements & Developments Dr. Lutz Füllgraf Technology and Innovation for Insurance Conference 2007, Sydney 22 March 2007
Contents 1 Importance of a Simplified Infrastructure for Allianz 2 Technology as our Key Business Partner 3 The Benefits of Standardized Processing 2
Importance of a Simplified Infrastructure for Allianz 3
Allianz Global Corporate & Specialty 2.8 billion gross premium written for large, international corporations Providing cover for nearly half the world s Fortune 500 companies More than 1,500 employees worldwide Leveraging the Allianz Group network in about 70 countries Strong balance sheet and consistently strong ratings High underwriting capacity for large risks Customized solutions reflecting years of global insurance experience 4
Main Underwriting Centers for Global Programs Global Pool Australia Austria Belgium Canada France Germany Hong Kong Ireland Italy Netherlands New Zealand Portugal Singapore Spain Switzerland United Kingdom United States Cession to central Allianz Global Risks Reinsurance treaty * * The units keep a protected net share of their own business which helps them to identify with their own portfolio. 5
Information Flow ALLIANZ SE ALLIANZ GCS Allianz Main Underwriting Centers Australia Austria Belgium Canada France Germany Hong Kong Ireland Italy Netherlands New Zealand Portugal Singapore Spain Switzerland United Kingdom United States Cession to central Allianz Global Corporate & Specialty Reinsurance treaty * Allianz OEs worldwide Allianz Co-operation partners 6 * The units keep a protected net share of their own business which helps them to identify with their own portfolio.
Three Required Dimensions to support Global Industrialized Insurance activities Each unit to operate in a consistent way Risk assessment Pricing Reporting and performance measurement Standardization Efficiency Information Need for high quality, timely data Basis for understanding trends and developments both locally and globally Fact based decisions Active portfolio management Simplified, globalized processes Reduced operational burdens Risk mitigation for errors and inconsistent data 7
Required IT enabled Underwriting Capabilities Single source of truth for Underwriting data End-to-end process with automated U/W rule validations Dynamic Loss Control Engineering Globally consistent risk-based pricing Improved management of the Underwriting Cycle 8
Solution Oriented Architecture Standardized processes Business processes Global or localized AGCS underwriting business processes using Subsystem services or integration components Subsystems Subsystems decompose functionalities into separable domains and provide the services necessary for the business processes Shared Business Services Support services to configure the application. These services are not directly involved in the business processing. Integration components Support services and business processes to configure the application. These services are normally directly involved in the business processing. Cross-functional Services Commonly used services that define and encapsulate aspects being used by multiple other system components and services Global Data Model Operational and reference data storage for all relevant processing One common information basis 9
Data Definition using ACORD Standards AGCS Data Model Extract - ACORD Reinsurance and Large Commercial Data Dictionary Data Item Deductible Type 10
Technology as our Key Business Partner 11
Allianz (Germany) I.T. Strategy Top-Level goals (top-down) I.T cost: Run the Company vs change the Company 70 / 30 ratio Every Allianz Company to strive for highest standards in efficiency measured by market specific KPIs Align I.T with specific strategic business requirements to ensure I.T effectiveness 12
Allianz (Germany) I.T. Strategy Make I.T cost transparent No hiding of I.T. cost in other budgets Provide service efficiency measured by KPI Top-down goal setting balanced with bottom-up efficiency control Application development / maintenance Work - station efficiency Cost benefit balance Balance work station cost vs individual work station configuration 13
Allianz (Germany) I.T. Strategy Streamlining data center operation Mushrooming data centers Identical data stored in several data centers Server consolidation saves 20% of data center costs Strict project screening for return on investment (ROI) Set out efficiency targets And measure them! 14
Allianz (Germany) I.T. Strategy I.T. must support business goals Constant challenges: Balance central, cost efficient approach With decentralized and particular business requirements 15
The Benefits of Standardized Processing 16
Allianz Group world-wide service capabilities for IIP Argentina Australia Austria Belgium Bermuda Bulgaria Brazil Brunei Canada Cameroon Central African Republic Chile China Colombia Congo Croatia Cyprus Czech Republic Denmark Egypt Estonia France Gabon Germany Great Britain Greece Hungary India Indonesia Ireland Italy Ivory Coast Japan Laos Latvia Lebanon Liechtenstein Lithuania Luxembourg Malaysia Mali Morocco Mexico Monaco Namibia Netherlands New Zealand Norway Pakistan Peru Philippines Poland Portugal Romania Russia Saudi Arabia Senegal Singapore Slovakia South Africa South Korea Spain Sweden Switzerland Taiwan Thailand Tunisia Turkey United Arab Emirates USA Uzbekistan Venezuela Vietnam 17
Extract of Current IT Application Landscape Reports for non Genius Data AMANDA Non-Marine (MS Access databases) Reports Aviation to 2003 US Genius GGI (Genius Generic Interface) AGC&S UK Genius GGI (Genius Generic Interface) Including: UK Aviation 2003 on, FR,DE Ex-AGR UK Genius AV38 Genius US Genius 2 Genius 1 AS400 Query GRE (Genius Reporting Extract) GRE (Genius Reporting Extract) GRG (Genius Report Generator) AS400 Query GRE (Genius Report Extract) MIS Files MIS Files MIS Files Hyperion Process Hyperion Process GLI (Genius Ledger Interface) GLI (Genius Ledger Interface) AS400 Query Output Files GRE Files x 10 (AS400) GRE Files x 10 (AS400) GLI Files (AS400) Hyperion Report Creation (Report and Data Model Design) SAS Hyperion Designer Hyperion (SQL Server) SUN Accounts (Vision) MS Access / MS Excel CODA AS400 & Partitions Domino Server MS Access (Validate & Format) Hyperion Accounting Systems Main Reports CSD Main Reports 18
Target IT Architecture Goal: Present one system to the Client offering global processes support based on standardized information with minimal data entry 19
AGCS Target IT Architecture Client Devices Internet Intranet Portal / Front End Data Warehouse & Functional Data Marts Front Office Mid Office Back Office Office Tools Document Production System Content / Document Management System Data Center(s) 20
Proposed Steps Define a Global Model Define a Core Product to match the Global Model Assess the effort required to re-engineer existing products in existing countries Evaluate the likely needs of each country Set up a team to complete the Implementation Studies as above Define essential requirements only within the Global Model 21
Proposed Steps Alignment of IT with the global business strategy Reduction of costs as systems and interfaces are reduced Common standards, common processes, global metrics, global management information Common access to information as systems are consolidated Elimination of re-keying of data Business advantage! 22