2018 Number 29 MLC LIFE INSURANCE Business4.0 DIGITAL DISRUPTION GST IN INDIA

PLUS n BestServe Financial n Nedbank Insurance n Old Mutual n ICICI Lombard n Scottish Widows n M&G Prudential SPECIAL INSURANCE ISSUE

Experience certainty. IT Services Business Solutions Consulting Business4.0 in BFSI designed to enable Business 4.0 strategies for TCS BaNCS customers. with existing and future solutions, integration with internal and The first stream is transformation to a digital core. The first external data, and interoperability with multiple blockchains and wave of digital adoption by financial institutions has mostly been messaging networks. Quartz Smart Solutions, developed with the about bolting on “consumer channels” like portals and mobile apps Quartz Smart Contract Development Kit, are complete blockchain- to legacy core infrastructures. Increasingly, financial institutions based solutions that are already live with financial institutions. We are By Venkateshwaran R Vivekanand, are realizing that legacy infrastructure limits their potential to releasing a series of solutions every quarter, across the BFSI spectrum. Srinivasan, Head of Co-Head of address the opportunities afforded by Business 4.0 with today’s The potential of blockchain will be truly realized as disintermediated TCS Financial Solutions TCS Financial Solutions technologies. TCS BaNCS provides financial institutions with a cloud-based ecosystems gain scale. functionally comprehensive, component-based by design, modern The fourth stream is all about enhancing the customer architectural platform. By moving from siloed legacy systems and experience. The crux of today’s mobile economy is the “user fragmented architectures to a simplified TCS BaNCS-based digital journey,” which takes an “experience” led view of every customer core solution architecture, several financial institutions today are interaction and/or transaction. TCS BaNCS Digital ADK enables We are now living through the Fourth Industrial Revolution, or what we vast amount and complex types of data, which in turn enables them laying the foundation for their future digital journeys. The ability to financial institutions and their customers to create business-ready in TCS call Business 4.0. to uniquely personalize every customer interaction, taking customer employ Open Banking APIs, microservices-based architecture and user experiences without being encumbered by technological In the digital economy, we are shifting from a paradigm of resource experience to an entirely new level. extensible toolkits for empowering third-party innovation are all complexity by using simple “drag-and-drop” features, and then scarcity to a paradigm of resource abundance. With abundant resources Agile and DevOps methodologies allow new players to bring a part of this future digital value realization. Core transformation launch a company-branded solution all within a matter of weeks. in terms of capital, talent, and capabilities, great ideas can be put into solutions and enhanced offerings at a rapid pace, making use of open also enables incremental deployments of AI to eliminate manual With these capabilities, financial institutions can enhance the practice faster, and at a larger scale, than ever before. APIs and challenging the viability of traditional cycles of product touchpoints and to provide conversational user interfaces, and a customer experience with ultrafast time-to-market and create a Successful organizations in Business 4.0 will have four primary innovation and development. Embedded in this is a “fail fast” mindset pathway to the emerging vision for AI-driven banking based on custom experience with minimal IT skills. characteristics: which allows organizations to take risks, yet rapidly change course, machine learning algorithms. Through these transformational streams, TCS BaNCS customers l Mass personalization – building large-scale systems that should the situation warrant. The second stream is reduction of TCO and time-to-market. are aligning with the characteristics of the successful Business customize for individuals. With these technologies maturing and gaining critical mass over the Through optimized cloud deployments of TCS BaNCS, we enable 4.0 organization. They are capitalizing upon emerging disruptive l Creating exponential value – satisfying customer demand for past few years, the financial services sector is at the cusp of massive our customers to access the power of scale and better align their technologies that are already changing customer expectations and the best products, world-class services, and instantaneous delivery at disruption at a large scale. To an unprecedented extent, financial cost structures with the growth in business, a.k.a. “pay as you delivering the experiences that customers increasingly expect. incredible price points. institutions will be able to deliver highly-customized services that align grow,” as opposed to step increments in costs with conventional l Leveraging ecosystems – rapidly tapping into the capabilities of closely with customer behavior, preferences, and everyday activities. models. TCS BaNCS enables customers to take advantage of market BUSINESS 4.0 IN INSURANCE partners and other stakeholders in the value chain through technology Working within economy-wide ecosystems, traditional financial opportunities by making “agile” the default model for TCS BaNCS In this special Insurance-themed issue of the TCS BaNCS Customer platforms. institutions will need to reinvent their relevance to customers, or else product development and establishing DevOps as the standard for Newsletter, we see these ideas in action. l Embracing risk – instead of mitigating risk by avoiding it entirely, lose the opportunity to “own” the customer relationship and be thereby continuous integration and testing. We are seeing rapid adoption Some of the largest insurers in the industry have started to consolidate develop the capability to respond to threats faster. relegated to commoditized back-office functions. of agile delivery models, not only for “business-as-usual.” but also onto TCS BaNCS as part of a core transformation (the first stream). The outlines of Business 4.0 are beginning to emerge in Banking, in our core transformation programs, thereby reducing substantial Others are farther along in using TCS BaNCS as a foundation to create Financial Services, and Insurance, with disruption fueled by these THE JOURNEY TO BUSINESS 4.0 risk for our customers as they realize incremental value in their new products and services quickly, in tune with market needs, and technological trends: With TCS as a solid, trusted partner, TCS BaNCS customers are ideally transformational journeys. designed for the Business 4.0 economy (the second stream); expanding Cloud computing provides access to scalable resources at a low positioned to transform their business models for Business 4.0. The The third stream is about empowering our customers through their ecosystems and networks (the third stream); and creating unique initial price point, facilitating the creation of networks and ecosystems. TCS BaNCS product suite is the largest collection of components, the leverage of Ecosystems and Networks. As financial institutions and innovative customer experiences (the fourth stream). Mobile enables access to a mass consumer base, without the enterprise and consumer apps for the financial industry, made digitize, they increasingly seek to deliver services across the value The convergence of Intelligence, Agility, Automation, and the Cloud need for heavy investment in physical infrastructure like branches. available through cloud delivery to help firms become more agile and chain, while eliminating points of friction in the transaction flow has allowed for TCS BaNCS customers to harness abundant resources Also, as mobile devices become more powerful and ubiquitous, they intelligent by leveraging the power of new and extended ecosystems. and also realizing the benefits of the “network effect." These are in real-time. As financial institutions make use of these capabilities, have become the vehicles of delivering personalization on a hitherto Each of these components and apps have been developed based activities that involve entire ecosystems and networks of partners and they will find new ways to succeed and thrive. unimaginable scale. on our experience deploying fail-proof solutions at more than 450 customers. TCS is committed to preparing our customers for success in the Data Analytics and Artificial Intelligence enable organizations of installations worldwide. A case in point is Quartz, our new blockchain-based platform, which Business 4.0 world, and we will continue to innovate on ways to any size (not just the largest entities) the power to analyze and interpret We see this transformation playing out across four streams of action, has been created to meet these needs while providing coexistence support the business models of the future. n

2 3 from the editor contents

solution of TCS BaNCS in the United States. (We will cover this story 2 Business 4.0 in BFSI letter How TCS prepares financial institutions for success in the Business 4.0 world at length in a future issue.) We have also begun our first life and 6 BFSI Platform Powered by TCS BaNCS pensions deployment in Australia with MLC Life Insurance (see 16 page 16), and our first insurance deployment in Southeast Asia with Introducing the future of insurance and financial services, powered by TCS BaNCS On the momentous occasion of the 50th anniversary of BestServe in Hong Kong (see page 20). 7 Digital Disruption Tata Consultancy Services, let’s look back to 1968 with a few To an unprecedented degree, insurance companies are relying Insurers respond to digital disruption with simpler products and processes choice quotes from S Ramadorai, former CEO and MD of TCS, on TCS BaNCS as their single platform for multiple lines of business, 10 2018 Insurance Product Update from his book, The TCS Story…and beyond. replacing in the process dozens of legacy policy administration systems Faster updates to TCS BaNCS, and insurance applications for TCS BaNCS Digital and Quartz “The young, highly talented team of TCS was often more like a (PAS) and hundreds of ancillary systems for customers including 14 Scottish Widows United KIngdom rowdy, boisterous bunch from the Wild West. Every new order MLC Life Insurance, BestServe, and South Africa’s Old Mutual Life Scottish Widows, Lloyds Banking Group’s Life and Pensions business. created euphoria and each invoice was celebrated with a beer Assurance Company (see page 28). Also in South Africa, Nedbank is 15 M&G Prudential United KIngdom party on the terrace of Nirmal building. Winning a contract the first in the insurance industry to combine life and non-life policies Over 4 million life and pensions contracts transferred to TCS subsidiary Diligenta 20 warranted a movie in the afternoon at one of the nearby theatres.” onto a single system (see newsletter #27 and page 24 of this issue). 16 MLC Life Insurance Australia I can assure you that even though we’ve settled down quite TCS BaNCS is also the choice for insurance companies building Australian life insurer undergoes top-to-bottom transformation a bit, our exuberance has not faded. We warmly welcome each digital solutions that represent the future of the customer experience. 20 BestServe Financial Limited Hong Kong new partnership and have great appreciation for the countless Whether it’s Nedbank’s build-your-own-policy bundle, Old Mutual’s Hong Kong insurer unifies core pension administration and undergoes legacy transformation customers who have stayed with us for so many years and decades. shopping-cart front-end experience, or ICICI’s demonstrated capacity 28 24 Nedbank Insurance South Africa “In those early days it was as though TCS was a Silicon Valley to sell 300,000 low-cost policies in a single day (see page 30), the Digital experiences for customers, stronger internal operations, and innovative product configurations startup.” future of insurance is being guided by our customers. 28 Old Mutual South Africa Fifty years later, we’ll match any Silicon Valley startup with our The future of compliance can be seen through our recent Old Mutual Life Assurance Company (South Africa) selects TCS for policy admin and digital front-end ability and willingness to experiment with the latest innovative experience helping 13 insurance companies in India to implement 30 ICICI Lombard India technologies. Even better, as a large organization, we have the a comprehensive Goods and Services Tax. The architecture of Insurer sells record-breaking 300,000 policies in a single day stability and proven delivery capabilities to put the best ideas into TCS BaNCS and the delivery capabilities of TCS made it possible for practice with organizations of any size and any business model. each of these insurers to achieve a smooth rollout on an extremely 32 GST: The Biggest Tax Reform in Indian Financial History TCS supports 13 P&C insurers with rapid adaptation to India’s Goods and Services Tax “Since its inception TCS has been a company staffed by highly tight deadline (see page 32). qualified professionals. Enhancing learning and the professional We at TCS have much to celebrate at 50 years of age, and we do 34 News and Events Celent's Model Bank awards, The Asian Banker Awards, Everest Group BPO rankings, and more well-being of its people was the company’s core strength and so with endless gratitude to our esteemed customers. indeed its raison d'être.” Until next time… About TCS Financial Solutions Some things never change. With over 394,000 of the world’s best- TCS Financial Solutions is a strategic business unit of Tata Consultancy Services. Dedicated to providing business solutions to financial institutions globally, TCS Financial Solutions has compiled a comprehensive product portfolio under the brand name of TCS BaNCS. The TCS BaNCS universal financial solution is designed trained consultants in 46 countries, TCS prioritizes the development Dennis Roman to help financial services institutions enhance end customer experience, enabling them to embrace open and innovative technologies that embody true digital and well-being of its people as part of our core values: customer engagement. Deployed at more than 450 installations worldwide, it is the largest collection of components, enterprise and consumer apps for the financial industry made available through the cloud, helping firms become more agile and intelligent by leveraging the power of new and extended ecosystems. Leading change, Integrity, Respect for the individual, To know more about TCS BaNCS, please visit: http://sites.tcs.com/tcsbancs/ Excellence, and Learning and sharing. Global Head - Products & Platforms Marketing Follow us on Twitter @TCS_BaNCS, and on LinkedIn at https://www.linkedin.com/showcase/tcs-bancs. Tata Consultancy Services About Tata Consultancy Services LTD (TCS) In this special insurance issue of the TCS BaNCS Customer Ph:- 561 865 3339 Tata Consultancy Services is an IT services, consulting and business solutions organization that partners with many of the world’s largest businesses in their Newsletter, we celebrate the extraordinary accomplishments of the Cell:- 954 806 6660 transformation journeys. TCS offers a consulting-led, Cognitive powered, integrated portfolio of IT, Business & Technology Services, and engineering. This is delivered Insurance team of TCS BaNCS. Fax:- 561 865 3388 through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development. A part of the Tata group, India's largest multinational business group, TCS has over 394,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of In recent months, we have achieved several market firsts. We Mailto: [email protected] US $ 19.09 billion for year ended March 31, 2018 and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. For more just signed a partnership with Transamerica, the largest-ever deal Website: http://www.tcs.com information, visit us at www.tcs.com. in TCS’ 50-year history, and the first deployment of the insurance https://www.linkedin.com/in/marketingasitshouldbedone Copyright © 2018, TCS Financial Solutions. All rights reserved. No part of this publication may be reprinted or reproduced without the written permission from the editor. TCS BaNCS newsletter is provided to clients and prospects on a regular basis. TCS Financial Solutions disclaims all warranties, whether expressed or implied. In no event will TCS Financial Solutions be liable for any dam- For any inquiries: ages on any information provided within the magazine. The information is provided to outline TCS BaNCS general product direction. The editorial is to be used for general information purposes. Email: [email protected] Phone: +91 80 6725 6963 The development, release, and timing of any features or functionality described for TCS Financial Solutions products remains at the sole discretion of TCS Financial Solutions.

4 5 BFSI Platform Powered by TCS BaNCS By Suresh Muthuswami, President and Global Head — Banking, Digital Financial Services and Insurance Platform, Tata Consultancy Services

Providing a better, more consistent, and customized These are tangible, insurance-specific implementations Disruption experience to customers is a top priority for insurance of what TCS calls Business 4.0 (see page 2) – the digital companies. However, many insurers are saddled with transformation of a business to achieve excellence in Digital disruption has arrived in the insurance cumbersome legacy infrastructures, and struggle with customer experience. industry, with new technologies and business models lengthy and inefficient processes for product launches, Business 4.0 customer experiences are intelligent, agile, fundamentally transforming the entire value chain. service requests, and regulatory fixes. With multiple policy automated, and on the cloud. These customer experiences To an extent, the insurance industry has been administration systems for different lines of business, have become central to the digital economy, shaping protected from rapid change by the inherent complexity they are held back by complex operating environments, business strategies throughout the insurance industry. of the business. Unlike other industries being rapidly redundant processes, and inefficient product development To deliver on these strategies, insurers will need a digital disintermediated, the insurance industry retains a cycles that limit the speed and extent of practical innovation. platform that extends insurance products and services in Insurers respond to core set of expertise-based competencies, such as risk The result is stagnant sales, indifferent customers, and new ways, powered by an integrated digital core. assessment and product manufacturing, that will be increasing threats from global technology companies and What excites our clients is that we are building digital digital disruption extremely hard to automate. Moreover, insurance is Insuretech competitors offering personalized, frictionless, capability on top of a simple core – redefining what a policy with simpler products subject to heavy regulation as necessary to protect the real-time digital experiences. administration system is. Among its digital capabilities, TCS’ consumer, and this regulatory oversight acts as a barrier 4.0 life and pensions Platform will offer contact center/contact and processes to entry, delaying disruptive market entrants. Business in Insurance management, electronic customer communications, and Nevertheless, digital disruption has emerged through TCS’ strategy for enabling all established organizations data reporting/analytics capabilities. APIs – TCS’ digital the actions of insurance companies themselves. to move forward with digital transformation is centered experience layer – will be exposed, which will enable Aided by technology companies and Insuretech firms, on an integrated, modern BFSI platform that enables insurers to integrate the Platform with any software of their market leaders in the insurance industry are starting insurers and other financial services companies to choice. This is a powerful, faster, and much cleaner solution to deliver personalized, dynamically-priced services drive sustainable growth through superior customer for addressing insurers’ customer experience and user to an increasingly tech-savvy customer base. Pricing

insurance special issue insurance experiences. experience challenges. and product features driven by artificial intelligence New customer experiences are revolutionizing the For insurance companies partnering with TCS, the and advanced analytics are enabling granular policies insurance value proposition for policyholders. For modern, digital, cloud-based core will be TCS BaNCS for designed for the individual. example, customers can assemble custom policies that Insurance, which already is being used to administer more By Rajatsubhra Pal, Customers can access these policies through a draw benefits from different kinds of insurance offerings than 17 million policies worldwide. Global Head – Insurance, consistent omnichannel view across advisors, contact and define customizable terms that meet their specific In this special Insurance issue of the TCS BaNCS TCS Financial Solutions centers, and self-service portals, in automated needs. (For specific examples of how insurance companies Customer Newsletter, we explore how TCS’ BFSI Platform experiences that generate higher satisfaction while are reinventing the customer experience with these will help insurers on their digital journeys to Business 4.0, reducing back office costs. capabilities, read our case studies on Nedbank, page 20, and highlight several insurers consolidating onto Examples already in the marketplace include apps and Old Mutual, page 24.) TCS BaNCS. n that track risky driving, apps that allow parents to track the driving habits of their teenage children, single-trip auto insurance policies, and affordable pay-as-you-go Does your organization have a way to move to policies designed for underserved communities that are accessible entirely from mobile phones. Business4.0

6 ? 7 Disruption of the insurance value chain

ACTUARIAL SALES SERVICING AND LOSS UNDERWRITING CLAIMS ECOSYSTEMS PLATFORMS PREVENTION

Digital technology SALES SERVICING ACTUARIAL AND UNDERWRITING CLAIMS ECOSYSTEMS PLATFORMS: is disrupting almost Personalized digital advisory Robotics and automation will LOSS PREVENTION Customer data harnessed Blockchain-based By enabling insurance companies Some insurers will combine every aspect of the services will disrupt the role disrupt manual processes, Technologies such as IoT and from social media and other automation will disrupt the to connect with different traditional standalone lines insurance value chain. of human financial advisors. and digital delivery will wearables are disrupting how aggregators will disrupt time-consuming and labor- upstream and downstream of business (e.g. auto, life, Omnichannel solutions enable disrupt paper-intensive insurance policies are priced the traditional application intensive methods currently partners and information home) to offer personalized To survive digital customers to gain instant communications. For and marketed. Insurers process. By making use of used for claims adjusting, providers, blockchain will protection from a single disruption, insurance access to their information example, instead of sending will evaluate customers’ known information about fraud investigations, and enable the insurance industry carrier, while others will companies will need without an intermediary, AI- documentation via postal potential needs based on customers, insurers will settlement. (Read about to embed insurance products participate in marketplaces to understand and based chatbots can provide mail to the policyholder’s their observed behavior such be able to reduce the time how TCS Quartz Blockchain into inter-company, inter- that aggregate products react to each of these suitable guidance and advice, home address, insurers may as driving patterns, suggest a needed for onboarding, solutions simplify life industry business processes. For from multiple carriers. These

changes by building and new configurations of send an automated, digitized combination of appropriate improve product fit with insurance claims on page 13.) example, ecosystems are forming platforms will enable new products and services products and ecosystems confirmation immediately policies, and then, based on the customer, and complete with hospitals, medical audit brands and business models can display a wider range to the policyholder’s mobile IoT data and wearables data, transactions faster. Rather companies, and other entities to to emerge. through a digital-ready of product offerings to app. This approach will speed offer personalized incentives than delaying approvals reduce claims processing times business model. customers. As a result, human up business processes while designed to reduce losses. with manual back-office from weeks to less than a day. advisors will be freed up to reducing back-office costs. processes, insurers will Smart contracts will also reduce provide ever higher-levels of immediately validate and the turnaround time for cross- advice and guidance. price new policies through border transactions, including front-end customer facultative placements in touchpoints. reinsurance (see page 13). Responding to disruption insurance special issue insurance Short-duration, event- Insurance bundles. driven policies. A single accident may result Insurance companies Simpler products. Simpler processes. Instead of offering only products in claims resulting for By embracing new products and higher satisfaction while reducing back are already responding To sell insurance products The typical lifecycle of with coverage by the month health insurance, hospital technology innovation, insurance office costs. to these impending using digital channels rather entering into an insurance or the year covering a specific care insurance, auto accident companies taking these approaches Examples already in the marketplace than advisors, insurance contract includes a asset, insurance companies can insurance, auto liability insurance, turn digital disruption from a risk into include apps that track risky driving, changes in the companies are building multistage process involving provide coverage down to the and life insurance. Instead of an advantage and transform ubiquitous apps that allow parents to track industry with business these being made available only digital data into abundant insurance the driving habits of their teenage products with simpler information gathering, minute, covering specific events. through separate policies services. Customers can access children, single-trip auto insurance strategies designed to features and simpler terms. verifications, and back- For example, an auto policy may for health insurance, auto these policies through a consistent policies, and affordable pay-as-you- keep pace with digital To allow salespeople to and-forth paperwork. provide differential coverage for insurance, and life insurance, omnichannel view across advisors, go policies designed for underserved disruption. move up the value chain, Digital enablement makes the daily commute versus leisure the trend will be toward contact centers, and self-service portals, communities that are accessible insurers will need products it possible to compress the travel, or for trips by other drivers comprehensive policies that in automated experiences that generate entirely from mobile phones. n that are capable of selling lifecycle of policy origination in the family, or for interstate combine features from multiple themselves. into a single click. travel versus in-city driving. policy types.

8 9 2018 4 LAYERS of updates for TCS BaNCS insurers The customer layer acts as a repository for modifications specific to a single organization or business unit. With its “loosely-coupled” design, customers Insurance can make material changes to accommodate their own business processes The geography layer contains customer and data structures without having to customize any of the other layers. These business processes for country- and state- customer modifications are forward-compatible by design, and easily adaptable to specific rules and regulations, and product Product successive updates to the core, business, or geography layers of TCS BaNCS. templates that provide insurers with a foundation for fully-compliant product launches. geography This year’s updates to the geography layer Update include: The business layer extends the data definitions for specific market l Australia market readiness: Templates Faster updates to TCS BaNCS, segments. This includes industry-specific data models for both life and non-life for Group Term, Whole Life, and Annuities; insurance, and for associated constructs. These are abstracted so as to be relevant implementation of Tax File Number (TFN) and insurance applications to across geographies and companies. for Australian individuals and entities; This year’s updates to the business layer include: TCS BaNCS Digital and Quartz FATCA and CRS checks for non-resident business l API-fication: Release of over 300 RESTful APIs, enabling developers to easily tax compliance; Unclaimed Asset Register; integrate TCS BaNCS with any third-party application using industry-standard Sanctioned Entity screening based on By Debarati JSON objects. (Note: “RESTful APIs” are Application Program Interfaces that adhere US and UN assessments; Anti-money to the widely-used Representational State Transfer, or REST, architectural style in Mukhopadhyay, laundering and counter-terrorism web development. JavaScript Object Notation, or JSON, is a human-readable data- TCS BaNCS Product financing during the KYC process; GST interchange format.) and stamp duty processing; Departing Manager – Insurance, core l Privacy Compliance: Support for the articles of the General Data Protection Australia Superannuation Payment (DASP) Tata Consultancy Services Regulation (GDPR), including identification, erasure, and data extracts of Personal handling; and income drawdown claims. Identifiable Information (PII), and support for both pseudonyms and exemptions. l US market readiness: Templates for Variable Universal Life, Indexed Universal For almost 19 years, TCS has delivered to its insurance industry customers an Life, Fixed and Variable Annuities, and insurance special issue insurance annual update containing improvements to market readiness, compliance with The core layer consists of foundational elements shared across all for traditional lines including Term Life, new regulations, enhanced workflow, and innovative new solutions. TCS BaNCS customers in every domain, including the core data models, Whole Life, and Group Term. The benefits of rapid adoption will soon be greatly accelerated with our rules engine, workflow engine, and infrastructure-level processes. l India market readiness: Various move from the typical “waterfall” software development lifecycle to the Agile This year’s updates to the core layer include: regulations were updated, including methodology for development and delivery. We are also implementing DevOps to l DB2 database compatibility. TCS BaNCS for Insurance is now support for the Goods and Services Tax enable Continuous Integration, which will provide customers with an automated, compatible with both DB2 and Oracle databases, leaving customers with (GST) in premium collection, refund, claim end-to-end pipeline for building code, scanning code, functional testing, and improved flexibility to choose between the two for either cloud or hosted payout processing, and tax provisioning security testing; and Continuous Deployment, which automates environment deployments. (see page 32 for more on GST). provisioning for higher-level optimization. The net result will be that TCS BaNCS l Integrated Rules and Workflow Engines: Enables seamless triggering of customers will have the ability to deploy major capabilities throughout the year, business events, and workflow escalation based on authorization limits. improving time to market and accelerating the pace of innovation.

10 11 Smart Solutions

As part of our Quartz Smart Solutions, TCS is creating several blockchain solutions for the Insurance industry. Two solutions likely to be released soon are: l Life insurance claims. Typically, the beneficiaries of a life insurance policy are responsible for providing a death certificate to the insurer, which needs to be validated and any unusual circumstances to be investigated. When a decedent has policies at multiple insurance companies, each insurer takes on these costs. To simplify and speed up the process for Transformation Optimization the parties involved, TCS is building a blockchain- based repository for public records, including death records. The repository will be made available online We have successfully migrated over 17 million for the use of municipalities, hospitals, healthcare policies from 27 different policy administration providers, police stations, and funeral homes. Given systems onto the TCS BaNCS platform. This has verified data available in a single, trusted source, been accomplished through a set of proven life insurance companies will be able to fulfill methodologies, tools, and techniques, which we claims with immediacy and certainty, with reduced continue to optimize and improve as part of our fraud, and at lower cost to the industry and to the Transformation Optimization initiative. government. Damage claims, comprising processes We are also in the process of researching and filing from claims registration to settlement, can also be several patents related to transformation, including: managed on the blockchain with an ecosystem of a data exchange tool for enterprise application insurers, service providers, and even banks. integration; a data migration tool for life and pension l Facultative placements in reinsurance. In the systems; an externalized transaction framework TCS BaNCS Digital reinsurance business, facultative placements allow for winding transactions backward and forward; the reinsurer to choose which risks they want auto-generation of business logic and front-end code based on product configuration options; TCS BaNCS Digital delivers self-service capabilities the lifecycle of the plan. to accept from insurance companies. Through a and a highly-configurable structure for defining throughout the value chain, from individual P&C insurers can build a single portal to enable blockchain-based distributed ledger for facultative

insurance special issue insurance medical benefits. These innovations demonstrate policyholders and corporate plan administrators customers and intermediaries to access and update placements, insurers can list which risks they seek our investment into process excellence in support of to insurance agents, brokers, and prospects. These data from multiple policy administration systems. to offset, allowing multiple reinsurance companies large-scale industry transformation. channel capabilities have been developed with a Behind the scenes, a robust middleware to review those risks in a single place, without Once transformed, insurance companies will be responsive, adaptive user interface which can be application orchestrates requests between front-end the need for back-and-forth communications. able to make full use of the extensive capabilities of rendered on any device, including smartphone, applications and back-end systems, which can also This will cut down the turnaround time needed TCS BaNCS, TCS BaNCS Digital, and Quartz, with each tablet, and web. include demands from other vendors’ applications. to enter into a facultative placement agreement, innovation made available immediately through Life and pension insurers can build highly This enables the deployment of ancillary solutions while also eliminating unnecessary friction in the Continuous Integration and Continuous Delivery.

responsive, omni-channel apps for employers, for contact management, CRM, and analytics. Also (2) istockphoto marketplace. We look forward to seeing the amazing successes plan administrators, and employees, with included are support functions for security, logging, of our customers over the coming years. n functionality to support every event throughout audit, messaging, and other critical functions.

12 13 14 customerinterview profile SCOTTISH cost transferal ofpoliciesto Diligenta alsominimizes interms ofoversight, businessrisk compliance, regulatory and run-off. businessmodel ofDiligenta, whichdeclinesincost withclosed-book policy utility proportionately The certainty. better retention, cross-selling, andupselling. portfolios. Asingleviewofthecustomer willalsoenableLBGto insights, gainvaluable data-driven leadingto a singleplatform, enhancing customer engagement through a consolidated, digital viewofpoliciesand engineering tools, Process includingRobotic Automation (RPA). scheduled for September 2018. the UK. Actions. The initiative willenableDiligenta to expand itsofferings to cover thetransfermarketplace in agency deployment willincorporate solutionsfor Life Insurance, Pensions, Investment Administration, andCorporate asatransferto for administer mutualfundportfolios acts retail agency investors. Accordingly, the TCS BaNCS customers.heritage Bank ofScotland, andHalifaxbranches. Widows’ through independent financialadvisers, andservices products directly, andthrough allLloyds Bank, income protection, pensions, annuities, savings, andinvestment products. Customers canaccess Scottish entered into with a15-year partnership TCS’ UKbusinessprocess outsourcing subsidiary. September 2017,Scottish In Widows, the200-year-old Life andPensions brand ofLloydsGroup (LBG), Banking Scottish Widows andLBGwillalsobenefit by reducing theof complexity vendor relationships through the Following thetransformation, allLBGbrands willdeliver insurance andinvestment through products Throughout theprogram, TCS isfollowing theAgile development methodologyanddeploying TCS process The transformation program willbedelivered infive phases over 36months, withthefirstdelivery addition,Diligenta willdevelopIn newcapabilitiesto meettheneedsofLBG’s insurance division, whichalso The transformation program willencompass: Diligenta, powered by TCS BaNCS,willprovide Scottish administration for Widows policy its withend-to-end Scottish Widows hasover five millioncustomers intheUK includinglifefor products cover, illness, critical Life andPensions brand ofLloyds Group Banking l l l l WIDOWS Replacement of 14 legacy policy administration systems systems policy andoverReplacement of14legacy 200ancillary Conversion products of838legacy More than4,000,000stakeholders More than3,380,000policies

in 15-year partnership withDiligenta in 15-year partnership

n

business andhave access that being to many opportunities ourcustomers willjoinarapidly growingsuccess inservicing whilethe colleagues whohaveand service, beencentral to our from abetter experience, digitally enhanced systems, tools istheright thingto do.partnership customers Our willbenefit customers. We are confident that ourstrategic extending to transform ourbusinessto keeppace withtheneedsofour move towards anindependent M&GPrudential we continue leadership.market savings andinvestments, TCS isthebestchoice,” saidFoley. andprovenexpertise experience intheadministration of by M&GPrudential.undertaken “Given itsscale, itsdigital more efficiently.” colleagues willbebetter equippedto provide that service receive -day in,day abetter out-asaresult service andour to create business. adigitally-enabled customers Our will with partnership TCS isanessential element ofourstrategy leader inUKlife andpensionadministration. Digital Platform, powered by TCS BaNCS, TCS is the market to partner TCS. With more than18millionpolicies intheBFSI contracts willmove from Prudential’s incumbent business £500 millionto thevalue ofthe10-year contract. additional 1.8millioncustomer policies, whichaddsanother for itsUKsavings andretirement customers. 10-year, with £500millionpartnership TCS to enhance service and investments businessofPrudential plc, announced anew 2018,M&GPrudential, January theUKandEuropeanIn savings Clare Bousfield, ChiefExecutive, Prudential said: UK, “As we cementsThe subsequent expansion ofthedealfurther TCS’ TCS emerged review astheclearleaderinafullmarket John Foley, ChiefExecutive ofM&GPrudential, said: “This total,In the administration of5.8millionlife andpensions June2018,theagreementIn was expanded to cover an 5.8 million life and pensions contracts5.8 millionlifeandpensions transferred to TCS M&G our BFSIDigital Platform.” committed to deliver greater speed, through andflexibility agility accelerate thegrowth agendafor M&GPrudential. We remain are delighted to whichwillhelp have expanded thispartnership provide for anenhanced M&GPrudential service customers. We this year, we to onajourney digitally embarked transform and Financial andInsurance Platform, Services TCS, said:"Earlier agile andimprove customer experience.” operations, whichwillenableM&GPrudential to become more platform willpower digitized front-, mid-,andback-office the UKlife andpension industry. addition,the In TCS BaNCS and TCS’ strong record administration in ofmanagedpolicy inBFSIstrength andcapabilitiesofourdeepdomainexpertise and technology services. We thecombined willalsobring transformation through TCS’ continuous investments indigital and drive sustainable growth. We willpropel this digital forenhance itsUKsavings service andretirement customers to bethe digital for transformation M&GPrudential partner to incorporating changes. regulatory for and launchingnewproducts reducing thetime-to-market digital transformation, improving customer experiences, and M&GPrudential’ssupport businessstrategy by enabling Platform powered by TCS BaNCS. administration systems policy onto theBFSIDigitallegacy 5.8 millionlife, policiesfrom pension,andannuity multiple cost ofownership for M&GPrudential. processes willincrease andlower operational total efficiency company ofaworld leadingITservices candeliver.”part Suresh Muthuswami, President andGlobalHead, Banking, CEOandMD, Gopinathan, Rajesh TCS, said: isdelighted“TCS The comprehensive of functionality TCS BaNCSwill thespanoffourOver years, TCS willtransfer of aportfolio TCS’ simplifiedarchitecture andstandardized business

n 15

Life Insurance Australian life insurer undergoes top-to-bottom transition with TCS BaNCS at the center By Sarit Das, TCS Program Director, TCS Financial Solutions

MLC Life Insurance, with support from its new parent Nippon Life, is rebuilding its entire technology ecosystem from the ground up, replacing all the legacy solutions managed by its previous parent, National Australia Bank (NAB), which remains a 20 percent shareholder. The transition program to independence has been dubbed sanagi, Japanese for “chrysalis,” the stage between customer profile customer caterpillar and butterfly. The new ecosystem will span everything from base-level infrastructure for data, networks, and security; business systems for managing human capital, general accounting, payroll, and tax; and insurance-focused solutions for legacy Policy Administration Systems (PAS), inbound/outbound communications, and records management. “This is an exciting time, and a landmark for us as a company,” says Sean McCormack, Chief Operating Officer of MLC Life Insurance. “Nippon Life is committed to making sure that we’re able to support our customers efficiently with digital solutions, and so they are setting us up almost as a greenfield company.” In late 2016, MLC Life Insurance began a comprehensive and rigorous Request For Proposal (RFP) sourcing process that included technology providers worldwide. The shortlisted vendors were asked to participate in a proof-of-concept phase to evaluate the products as well as the subject-matter experts to be assigned to the project. Next, a contingent of MLC Life Insurance executives visited the customer sites of the shortlisted vendors to learn about their experiences. “The customer references gave us a strong sense that TCS knows what it takes to deliver a data migration at the scale we require,” says Sean. “We also felt encouraged by the partnership approach that TCS demonstrated when working with its customers,” adds Sean. “We want to work in a partnership where we understand what’s important to each other and are committed to each other’s mutual success.” In May 2017, MLC Life Insurance awarded a nine-year, $65m+ AUD contract to TCS, for the implementation, migration, and support of TCS BaNCS as the insurer’s primary PAS. “This will be the biggest life insurance transition program in Australian history, and TCS’ wealth of experience in large-scale migrations and the modern, flexible application TCS BaNCS gave us confidence that they would be the best partner for MLC Life Insurance,” says Fiona Guscott, Head of Policy Administration Systems, MLC Life Insurance. “The expertise and knowledge of the individuals we have worked with, both in Melbourne and offshore, has been extremely impressive, and we are very confident that together we will successfully deliver this program which will see MLC Life Insurance leading our industry in Australia.”

16 17 18 customer profile through resolutions inacollaborative manner.” communicating withahighdegree clearly ofunderstandingmutualissuesandworking interactions,day-to-day account management forums, andexecutive governance, we are level, withusonsanagi,” andagooddialoguewiththeteams working says Sean. our “In success throughout theseendeavors. “We’ve establishedagooddialogueat theexecutive completed by endof2019. to migrate eachPAS inturn. The second migration, covering arange ofretail products, willbe administration systems. MLC Life Insurance, withNABalong inconjunction TCS, willwork efforts for otherinsurance currently policy products runningonsixseparate NAB-legacy setforgo-live mid-2019. in-force bookofgroup insurance systems policiesfrom to NABlegacy TCS BaNCS,withatarget obligations.”our regulatory know how that ourstaff to useit, andthat from thestart, customerwe’re service able to meet new ecosystem, we want to works, makesure that everything that we’re ableto provide great says Sean. “Before we addpremium in-force hundreds ofmillionsdollarsinto worth the systems. and allancillary thoroughly test thefullcapabilitiesofnewbusinessecosystem, whichincludes TCS BaNCS MLC Life Insurance to accept newbusinessingroup life insurance schemes. This approach will basis,” says Sean. thispartnership,we’re“Through bothheavily invested thisasuccess.” inmaking by dedicating asignificant numberoftheirpeople to withusinourofficeswork ona day-to-day customer. demonstrated“TCS itspreparedness to localize to products theAustralian marketplace This willbethefirstimplementation of TCS BaNCSin Australia for alife insurance andpension Complete re-platforming The partnership between MLCThe partnership Life Insurance and TCS hasestablishedthegroundwork for Meanwhile, MLC Life parallel configuration Insurance willbeconducting andmigration Following thesuccessful completion ofthefirstphase, MLC LifeInsurance willmigrate its “We are completely ourcustomer re-platforming experience from thetop to thebottom,” The firstphaseofthe TCS BaNCSimplementation, to be completed in August 2018,willallow MLC Life Insurance Development Center for ofOffshore Inauguration

MLC Life Insurance Chief Operating Officer, McCormackSean , MLC Limited usestheMLC brand underlicence. MLC LifeInsurance oftheNippon oftheNABGroup ofCompanies. Group Limited ispart andisnotapart l MLC Life Insurance was acquired in2000by l Founded in1886to provide life insurance to MLC Life Insurance from NAB, whichretains In October 2016, Nippon Life 2016,Nippon Insurance October l In has become Australia’s newest standalone

industrial workers,industrial MLC Life Insurance Company acquired 80percent of

National Australia Bank(NAB). a 20percent ownership stake. specialist life insurer. FAST FACTS become Australia’s leadingandmost-trusted life insurer.” over couple ofyears, thenext andwe lookforward to TCS’ continued commitment to helpusto respect,” remarks Sean. “We’ve amount gotanenormous ofwork to dofor thesanagi insurance, and TCS BaNCSisthetechnology platform that willenableusto dothat.” “There’s to reach thosecustomers whodonotyet enjoy ahugeopportunity thebenefitsoflife excited of abouttheflexibility innovativeTCS BaNCS design,”to support product saysSean. defined workflow, andefficiently fulfilledwith correspondence sent by email, SMS,orpostal mail.” to administer customer requests through automated, straight-through processes,” says Sean. huge source ofcompetitive advantage for us.” infrastructure intheAustralian life insurance industry," says Sean. customer experiences, andare focused ondelivering themostadvanced digital andprocess enable anentirely digital customer experience. environments,” oflegacy from thesesorts notes Sean. same system complexity, thesamemanualprocesses, andthesameoperational that risks come handoffs increased thetime to fulfilla request,error. while for creating multipleopportunities a Word template, printthedocument, and thenmanuallyfold andstufftheenvelope. These multiple or rekeyed data entry. Then, to fulfillthe request, someone would have to place theupdated data into entered into onesystem andthenmoved through several different systems, via often copy-and-paste itincredibly difficultmaking forourstaff to service.”provide ahigh degree ofcustomer approach doesnotenableusto dothat,” says Sean. “We’ve hadtoo many manualprocesses our advisors, andourfundsalltell ustheywant to interact withusdigitally, butourcurrent customers,MLC Life Insurance staffandcustomers anticipate eagerly thebenefitsofsanagi.“Our fromBenefitting adigital customer experience “Our relationship with TCS isbasedonmutualtrust, mutualunderstanding, andmutual TCS BaNCSwillalsoenableMLC Life Insurance to reach untapped markets. “We’re really requests“Incoming willbeclassifiedautomatically into TCS BaNCS,administered through a well- The newecosystem willenablefast, efficient service. “We’ll beable toenableouroperations team “Once it’s deployed, andonce ourcustomers canenjoy thedigital platforms, thisisgoingto bea "We are engaging inamulti-milliondollartransformation program designed to create great Once MLC Life Insurance’s competitors have thesamehandicaps. largely faced“They’re withthe For example, undertheoldsystem, ifarequest cameinthrough center, thecontact itmight be sanagi iscomplete, MLC Life Insurance willhave anentirely newecosystem that will

TCS BaNCS for Life Insurance andPensions legacy policy administration systems. policy legacy Complete transition from multiple Melbourne, Australia Business Challenge MLC Life Insurance AT AGLANCE Headquarters Company Solution program n 19 BestServe

CIO of BestServe, Ritesh Sarda inaugurating new Offshore Financial Development Center The choice of TCS came down to three main factors:

interview 1. Comprehensive capabilities of TCS BaNCS. “TCS BaNCS has a rich set of functionalities to support our core administration system needs for pension products and potentially scalable enough to take care of the Limited life and health business as well,” says Ritesh Sarda, CIO of BestServe. Hong Kong insurer unifies core pension administration 2. Implementation capabilities of TCS. “TCS has been able to and undergoes legacy transformation with TCS implement large, transformational programs for many strong players in the marketplace, and they have the capability and experience to By Dipan Talukdar, Group Leader, TCS Financial Solutions handle a large variety and high volume of projects,” says Ritesh. and Gautam Mondal, Delivery Owner, TCS Financial Solutions 3. Prior relationship with TCS. BestServe’s parent company, Sun Life Financial, had worked in the past with the business processing subsidiary of TCS, which supports the UK operations of Sun Life Financial of Canada.

customer profile customer In total, the entire legacy transformation program will involve Over 150 authorized companies sell life insurance and general insurance in the global consolidation of pension administration systems covering multiple financial center of Hong Kong, and more competition is on the way, including financial pension schemes and pension accounts holding portfolios that institutions from mainland China expanding into insurance through acquisition or may include both unitized investment funds and interest-based, partnership. non-unitized investment funds. TCS BaNCS will have to connect to BestServe intends to modernize the pension administration platform through a technology multiple interfaces, including internal BestServe systems and external upgrade accompanied by a major business process transformation initiative. regulatory systems. Vendor evaluations commenced in 2016, and after several months reviewing multiple In addition to the TCS BaNCS deployment as a pension administration candidate firms, BestServe selected TCS BaNCS to be its core administration system in its system, TCS has also begun to work with BestServe on building a Pension line of business. This represents the first implementation of TCS BaNCS for Insurance platform to support extensive digital capabilities for web and mobile. in Southeast Asia, and the first unified, platform-based pension administration system in Hong Kong.

The TCS people we have onsite are passionate, hardworking, and committed.

20 “ ” 21 BestServe executives meet with the dedicated TCS team

FAST FACTS

interview l Wholly owned by Sun Life Financial, BestServe Financial Limited (BestServe) has almost 20 years of pension administration experience in Hong Kong.

l BestServe administers the pension funds Platform benefits of about 720,000 customers with assets of One aspiration for BestServe is to attain a single view of the customer across over HK$69 billion. Customers include employees, multiple schemes and products. “Enabling clients to access their portfolios self-employed persons, employers, and providers online is not just better for customer experience, but it also improves efficiency of Mandatory Provident Fund (MPF) Schemes and because they will no longer have to call the contact center for the same Occupational Retirement (ORSO) Schemes. information,” says Ritesh. l BestServe is among the few companies capable Significant efficiencies will also occur through business process of operating on a multi-product and multi-fund

customer profile customer transformation. “We expect the majority of our processes to be optimized, manager platform with more than 150 investment whether through improvement, consolidation, or automation,” says Ritesh. funds from 20 investment management houses for third-party pensions administration customers. The technology infrastructure footprint will also shrink due to the consolidation of several instances of the legacy PAS onto a single instance of TCS BaNCS. “We’re looking at significant advantages and benefits in terms of reducing our server footprint,” says Ritesh. The progress so far has been extremely encouraging. “The TCS people we have onsite are passionate, hardworking, and committed,” says Ritesh. “They AT A GLANCE know their jobs, and they get along very well within the culture here as well.” Company TCS leadership has also been effective at working as collaborative partners BestServe Financial Limited alongside BestServe. “They are receptive and willing to change their approach Headquarters to make things work for us,” says Ritesh. n Hong Kong

Business Challenge Technology upgrade and business process transformation

Solution TCS BaNCS for policy administration system to support pension insurance; and TCS for digital platform

We expect the majority of our processes to be optimized, whether through improvement, consolidation, or automation.

22 “ ” 23

Nedbank Insurance Unique partnership with TCS develops new digital experiences for clients, stronger internal operations, and innovative product configurations By Susanta Das, Client Partner-Nedbank Insurance, TCS Financial Solutions customer profile customer In 2017 Nedbank Insurance merged personal, commercial, and With the unified TCS BaNCS solution, Nedbank Insurance has life insurance businesses under a single brand and, as part of the achieved early benefits including: consolidation, became the first insurance company in the world l Faster response time. Previously, changes had to to run a single policy administration system—all powered by be made on multiple policy administration systems and TCS BaNCS—for both life and non-life insurance products. ancillary systems for content management, document (See TCS BaNCS Customer Newsletter #27 for more details.) management and workflow. Now, Nedbank Insurance Since then Nedbank Insurance has successfully migrated the can handle service requests, new feature requests, and bulk of its products to the single TCS BaNCS platform. By June regulatory updates in a single solution. 2018 any remaining closed-book policies will be added to TCS l Improved client interactions. Client service agents can BaNCS, and by early 2019 migration will be complete for the last now get a consolidated view of client information and contact portfolio of open-book policies – a funeral insurance product that history across products. "Migrating to TCS BaNCS has changed has been running on a separate legacy system built for the South the conversations we’re having with clients as we can focus on African market. improving services rather than on managing infrastructure,” says Indranil Bandyopadhyay, Head of Information Technology Business Enablement at Nedbank Insurance..

l Standardized business processes. Nedbank Insurance professionals are now able to support life insurance and non-life insurance products. For example, following a weather-related event, people who usually work on the life insurance side of the business can lend a hand to the non-life side. Similarly, the non- life side can support the life side during peak enrolment periods.

24 25 In the past two years, Nedbank Group as an organization “We are exploring further efficiencies,” says Bandyopadhyay. data from the retail banking side of Nedbank Group. “This “We are constantly looking at our processes to take advantage of opens up opportunities for moving from descriptive analytics has made having a single platform for life and non-life policies, and we are to predictive analytics,” says Bandyopadhyay. “The fact that “significant strides engaged with TCS in finding areas of improvement.” the data is available in one place helps us to understand our with digital.

analysts Upcoming initiatives include: business better, automate more effectively, and build real-time Steven Goodrich, l Incorporating data from Nedbank Insurance’s agent dashboards that support operational efficiency.” Head of Technology at Nedbank Wealth network into TCS BaNCS. This will improve client support at l Creating a ‘build-your-own’ policy. As the first insurer to the contact centre, deliver full digital capabilities to all Nedbank operate on a single policy administration system for both life Insurance policyholders, and contribute to improved analytics. and non-life insurance products, Nedbank Insurance is in the “Once that data gets loaded, we will have a 360-degree view unique position of being able to innovate and offer clients ” of our entire business, including policies being administered a comprehensive, build-your-own insurance bundle. “We by external insurance companies and brokers,” says want to enable clients to construct a policy based on their AT A GLANCE Bandyopadhyay. precise needs, drawing from several types of life and non-life FAST FACTS l Building digital experiences for clients. “In the past two benefits,” says Bandyopadhyay. “The hard part is the shift from l Nedbank Insurance is part Company years Nedbank Group has made significant strides in the digital considering risk at the policy level to considering risk at the of Nedbank Group, which had Nedbank Insurance 31,887 employees in field,” says Steven Goodrich, Head of Technology at Nedbank benefit level.” Headquarters December 2017. Nedbank Group Wealth, the insurance and asset management business of “It’s a good challenge to have—and it’ll definitely differentiate is a market leader in innovative Johannesburg, South Africa customer profile customer Nedbank Group. “We’ve gone from being an also-ran, to winning Nedbank Insurance from our peers,” he adds. client experiences including Business Challenge awards and defining the gold standard in best practices.” chatbots, robo-advisors, To take advantage of the first-to-market capabilities l Automating client interactions. In addition to deploying software robots (robotic process Partnership experience enabled by having a single TCS BaNCS policy administration chatbots for delivering client support across product lines, The relationship between Nedbank Insurance and TCS has automation), and geyser telemetry – an innovative smart system for life and non-life insurance products Nedbank Insurance is developing smart home solutions such grown into an ideal long-term partnership. home solution that reduces Solution “As a testament to TCS’ excellence in execution, our project as geyser (water heater) telemetry, which involves automated electricity consumption. Co-creation partnership with TCS communications between backend systems and geysers located has been running for many years, consistently on time and on clients’ premises. “Having one system allows us to go to under budget,” says Goodrich. market quicker with these innovations,” says Bandyopadhyay. “What’s remarkable is that TCS is innovative as well,” he l Integrating with insurtech firms. Nedbank Insurance is says. “TCS continues to bring us new ideas and concepts and, positioned as the ideal partner for insurtech firms — the through brainstorming sessions and with their dedication in insurance industry’s equivalent of fintech. “We’ve seen the understanding our requirements, we have been consistently growing trend toward open banking, largely on the back of successful in co-creating solutions that deliver true business The fact that the data is available various regulations coming into play in the European Union and value for Nedbank Insurance.” in one place helps us to elsewhere, and it’s only a matter of time before open insurance A key aspect of the partnership is that the TCS and Nedbank becomes a trend as well,” says Goodrich. “Having TCS BaNCS as Insurance staff members work side by side as a single, unified understand our business better, a core policy administration system gives us a single standard team. “The TCS people consider themselves part of the Nedbank automate more effectively, and set of application programming interfaces (APIs) for our Insurance family, and they have taken on the cultural values that “build real-time dashboards that entire product range, which allows for easy collaboration with Nedbank promotes” says Goodrich. “This speaks to the type of support operational efficiency. insurtech firms.” relationship that we have with TCS – it’s truly one team.” l Driving advanced analytics. Analysts at Nedbank Insurance “The strength of this relationship is how we win together, how will be able to draw on client data across product lines, we help each other, and how we resolve any challenges that aggregated data from insurance agents and brokers, and arise,” adds Bandyopadhyay. n Indranil Bandyopadhyay, Head of Information Technology Business Enablement at Nedbank” Insurance 26 27 28 customerinterview profile policies.” we candeliver those abetter customer experience inservicing Burke. policies to thenew moving“By legacy TCS BaNCSplatform, in migrating many systems,” millionsofpoliciesfrom legacy says impressed by themigration of capability TCS, andtheirexperience policies to TCS BaNCS. “From ourfirstdiscussions, we’ve been TCS BaNCSplatform inthesystems integration test phase. end of2017.Following that, OMLAC(SA) commenced testing ofthe platform, ofthebaseproduct whichwas completeddelivery by the issuanceby to moving newpolicy TCS BaNCS. The firstphase was platformwas to reduce legacy ofrunningonanend-of-life therisk with us.” business, andwe really felt TCS would beableto gothedistance “Our culture asacompany isdeeplyentrenched intheway we do same values we do, andbelieve thesamethings,” says Burke. “With TCS, we found peoplewhothinklikewe do, whohave the thanthetechnology itself.”important journey,” says Burke. are more qualitiesofalong-term partner “The administration system,policy you’re signing upfor a15-to-20-year could commit to thelonghaul. you are implementing“When acore search administration for system anewpolicy from aprovider that LifeMutual Assurance Company (SA) Limited. mildly,” says Warick Burke, GeneralManager, Product Solutions, Old theproduct. support to usinsomewhat ofapickle, putit left “That administration systembespoke policy was nolongergoingto Africa) received(South notice that thevendor whocreated their 2016,themanagement Life ofOldMutual In Assurance Company OMLAC(SA) is also in the early stages of transitioning all legacy OMLAC(SA) stagesoftransitioning isalsointheearly alllegacy Upon signing theinitialdealwith TCS, themostimmediate need The robust search process resulted of intheselection TCS BaNCS. After assessingthevarious options, OMLAC(SA) decidedto Old Mutual By system, andTCS fordevelopment ofdigitalfront-end TCS administrationLimited selects BaNCSfor policy Mutual LifeAssuranceOld Company Africa) (South Joydeep Sarkar, Client Partner, TCS Financial Solutions that level oftrust, there’s nothing you can’t solve.” ofthisscope,” projects enormous undertaking adds Burke. “With problems until we getananswer that works for us.” changes,throughwith majordirectional difficult andinworking withthe and friendships TCS team,” says Burke. hashelpedus “TCS business. “Our seniorpeoplehave developed great relationships to takealong-term approach toward buildingasustainable enabledbyproducts customizable life insurance. thenewrange of for servicing and onoperational support 2019. forWork financialadvisors, onthedigital portal isunderway their needs,” says Burke. policies, withthem guidedbyto meet financial advisors working end platform, we canallow endcustomers theirown to construct excellence.combination of technical capabilitiesandpartnership of several alternatives, TCS ashaving was againselected theideal provider to buildthedigital front-end. Following theevaluation African marketplace.”South the more differentiated we willbecome inthehighly competitive products, andthemore customizations that customers cando, they’re getting,” says Burke. more modularwe canmakeour “The policy, seechangesto adynamicpremium, andunderstandwhat with theirfinancialadvisorscanaddor remove benefits toabase provide a ‘shopping cart’ experience, where customers working enabling ahighdegree customization. ofproduct “We want to OMLAC(SA) sought to buildanentirely newdigital front-end Beyond the migration administration system, to anewpolicy Customizable Life Insurance “Trust isthebasisfor gettingthrough tough times, andfor with The closepartnership TCS hasgiven OMLAC(SA) theability The for go-live thenew digital platform isscheduledfor early “With TCS providing thecore to buildthenewfront- digital skills OMLAC(SA) aseparate conducted search for atechnology

n n Company (SA) Limited LifeOld Mutual Assurance Manager, Product Solutions, Warick Burke, General Insurance solutionof TCS administration, BaNCSfor policy Old Mutual LifeOld Mutual Assurance Company Africa) Ltd (South (OMEM) willfocus onbecoming anAfrican financial commenced theprocess ofamanagedseparation Going forward,l Going Emerging OldMutual Markets (South Africa) Ltd is a subsidiary of Old Mutual ofOldMutual Africa) Ltd(South isasubsidiary and TCS for buildingacustom digital solution. services championwithstrong,services differentiated from former parent company plc. OldMutual Emerging Ltd., Markets whichinMarch 2016 Migrate from end-of-life legacy systems,Migrate from legacy end-of-life and franchises in other select emergingfranchises inotherselect markets. for financialadvisors andtheircustomers. Old Mutual Lifel OldMutual Assurance Company will becomplete by theendof2018. build anewfront-end platform Johannesburg, Africa South The managedseparation Business Challenge FAST FACTS AT AGLANCE Headquarters Company Solution 29 30 customerinterview profile Lombard Girish Nayak, ChiefofCustomer Nayak, OperationsGirish & Service, there’s asignificant spike in thebusiness,” explains themonths ofSeptember andOctober,“During 300,000 insurance policiesinsinglebusinessday. by TCS BaNCS,lastyear theinsurer soldmore than Lombard’s businessandthecapabilitiesenabled As astunningillustration ofthescaleICICI Up Revved as ICICILombard’s largest technology partner. 2017 to 23.52millioninFY2018. increased by 32.5percent —from 17.73millioninFY thelastfiscal In year alone, thenumberofpolicies annual growth rate (CAGR) continuing over 13years. 22.5percent$1.8 billion)—aremarkable compound later merged into TCS. technology solutionfrom a TCS subsidiary, CMCLtd., Rs 8.85billion. That year, ICICILombard adopted a company.services Holdings, aCanada-based diversified financial andFairfaxlargest private bank, Financial sector a joint venture between ICICIBankLimited, India’s ICICI Lombard GICLtd. was founded in2001through Throughout thisjourney, TCS hasexpanded itsrole FY2018,GWPreachedIn Rs123.57billion(USD FY2005,grossIn written premium (GWP) was ICICI TCS Financial Solutions By inasingleday 300,000 policies Insurer sells record-breaking Debkumar Debnath, Program Director - TCS BaNCS, operations staffhasonlyincreased by 10percent.” almost fourfold, whereas theheadcount for the five years, thenumber ofpoliciesissuedhasincreased don’t needto process paper,” says Nayak. thelast “In of policiesissued. “It’s alldigitally processed, sowe its website oragent systems, whichare 88percent ICICI Lombard hasdigitized salesthrough alldirect platform for technology andoperations. To that end, requires ahighly-scalable, automated, andlow-cost in asinglemonth,” says Nayak. highest numberofpoliciesthat anyone has processed numbersofpoliciessold.breaking “I believe itwas the standing inthemarketplace, contributes to record- low prices, combined withICICILombard’s high-profile premiums costing aslittle$15to $20peryear. These wheeler vehicles, ICICILombard offers policieswith With share ahighmarket in motor insurance for two- by sellingover two millionpoliciesinasinglemonth.. insurance company itoutsolditslarger rivals inIndia, single businessday.” that target by sellingmore than300,000policiesina 2017wethe lastday were inOctober ableto reach we setanambitious salesmotivation target, andon Technology at ICICILombard. “For aninternal contest, Handling ahighvolume ofsmall-ticketpolicies Even thoughICICILombard isthefourth-largest

“Any changesthat we do, TCS ofit.” willbeapart going asithasfor thepasttwelve years,” addsNayak. healthy, andwe hopewe cankeepthisrelationship deployment. “Our relationship with TCS isquite enhance thecapabilitiesandreach ofthe TCS BaNCS switchover, onp32.) seearticle all systems goonday one.” (For more ontheGST July 1st, we were oneofthefew insurers whowere measured thesuccess was oftheproject that on modules for testing,” remarks Nayak. really “What intense months, theywere turnaround ableto quickly the entire process, andthrough acouple ofvery GST withoutmissingabeat. of was akeypart “TCS switch over taxto thenew from theoldservices formal manner.” was quite acomplex exercise, andwe had to doitina changes to capture allthosedetails,” says Nayak. “This products. system hadto undergo significant “The chain across several different system modulesand many otheradjustments throughout thesupply for reconciling GSTwitheachstate, andto apply tax,to trackprevious interstate services transactions insurance companies to switchover from the just months before thechangeover date, required and duties. The GSTrules, whichwere formulated effect onJuly1,2017, replacing several othertaxes Services Tax The (GST). newGSTsystem cameinto with thenewrequirements ofIndia’s & Goods of testing andapproval across multiplebusinesslines. releases, whichallowsquarterly thesynchronization most changerequests are bundledinto scheduled configurable of flexibility TCSBaNCS.Normally, ICICI Lombard alsorelies uponthehighly- switch to GST Single-day ICICI Lombard willcontinue to work with TCS to Moreover, ICICILombard hadto prepare to Last year, ICICILombard fastto comply hadto act ICICI Lombard Technology at Operations & of Customer Service, Nayak, Girish Chief

n

A QUICK NOTE OF APPRECIATION

you have put in over the last year in effectively managing both the developments and support initiatives. Managing the core Application without break during the business hours requires a commendable effort & dedication and such achievements deserves a special appreciation. This year we had reached all-time high numbers in terms of policies issued, with maximum per day through put Would like to take a minute to thank you and your team for the work and effort reaching 3 lakh policies in a single business day and 20 lakh polices in a month. This was possible only due to the team’s active and continuous support and robustness / scalability of the Core Application from TCS.

this year requires an explicit mention here as it was delivered in a very short span Handling record-high volumes considering the scope of the implementation. The attitude and approach of the team towards addressing the challenges faced during the GST implementation General Insurance Company displays the strength of the support team. One of the biggest projects that we had executed for the GST implementation collectively towards the first time correct approach and the measures we undertook

in reaching the goal. Please express our sincere thanks to the rest of your team too. TCS BaNCSfor Insurance Once again, we would like to thank you and congratulate you and the team for your hard work and dedication. I wish that you continue the spirit in the upcoming and implementing GST projects also. Attaining these milestones was possible only since all of us had been aligned

Best regards, Business Challenge AT AGLANCE Mumbai, India Mumbai, Headquarters ICICI Lombard Company Solution 23.52 millionpoliciesinthefiscal year ending non-life insurerbasedongross inIndia direct l private general insurance sector company in l Rs 100 billion (USD $1.5 billion) mark in Rs 100billion(USD$1.5billion)mark ICICI Lombard isthelargest private-sector l In 2017,ICICILombardIn becamethefirst The company issuedapproximately

Siva Subramanian.R | VP - Technology premium income (GDPI). FAST FACTS premium income. India to crossIndia the March 2018. 31 GST: from within insurance companies, from their external tax consultants, or even from regulatory guidance. THE BIGGEST TAX REFORM There are 13 P&C insurers in India running on the NOTES OF APPRECIATION TCS BaNCS Platform, in total representing 70 percent of the total P&C volume in India. For help with the GST in Indian Financial History It gives me immense pleasure to inform you all that we have implementation, these 13 insurers turned to TCS—in its passed the giant challenge of GST implementation without any capacities of a consultancy, as a business application TCS supports 13 separate P&C insurers major hiccups. provider, and as a solution integrator. briefing The commitment shown for ensuring smooth delivery is really with rapid adaptation to India’s GST Insurance companies in India tend to have anywhere from commendable and is appreciated by RGICL Management. 50 to over 200 insurance products in their portfolios, and By Debkumar Debnath, Program Director - TCS BaNCS, Ashish Dhar TCS identified 50 to 60 distinct processes where GST would Associate Segment Heads - IT Projects TCS Financial Solutions, and Abhishek Kar, have a substantial impact for each policy. This represented a Reliance General Insurance Co. Ltd. Product Consultant - TCS BaNCS, TCS Financial Solutions tremendous undertaking, involving changes not only to core processing systems, but also to enable the steady production At midnight on July 1, 2017, India’s long-awaited and delivered, i.e. which of the insurer’s own facilities of documents, certificates, and reports for policyholders, I thank each one of you and your teams in making GST functionality highly-contested Goods and Services Tax (GST) took effect. is involved, whether headquarters, a branch office, service providers, suppliers, regulators, and tax authorities. live. It has been a tremendously high-pressure period over the last GST reduces barriers to interstate commerce by replacing agent, or claims adjuster. TCS stayed well ahead of these changes. In January 8 weeks but thanks to each one of you and your team’s commitments, the earlier multi-layered tax structure, which had involved 5. Maintain records for the two addresses associated 2017, the TCS BaNCS Product Team, in consultation with we have been able to meet the deadlines. over 10 different types of federal, state, and local indirect with each transaction; and create invoices accurately the various account teams, initiated discussions with the This period has seen multiple changes in the requirements and taxes. The simplified GST approach also facilitates easier for any combination of state-to-state commerce. subject-matter experts at each of the 13 Indian insurance regular repeat of testing but each of you have taken this in your inbound investment, and the increased economic activity 6. Collect unique, government-issued GST Identification companies. Through these discussions, TCS established a stride as the external situation was very fluid, and clarity on items and spurred by GST is expected to boost gross domestic product Numbers (GSTIN) from each registered taxpayer, common strategy and approach for tackling the technical business rules kept coming in till the last minute. (GDP) by two to three percent within five to seven years. whether a person, business, or other entity. and functional challenges of GST through a uniform process. The magnitude of change has been large, impacting almost all our Sustained GDP growth will support the penetration of 7. Rewrite business processes in underwriting, commissions, This extended to managing the many grey areas, which also systems, and it is heartening to note that we have not missed any insurance in India, which still has among the world’s lowest claims, processing, settlement, and reinsurance to had to be identified, tracked, and resolved consistently. Integration/Functionality. rates of per-capita premium underwritten. Yet the rollout accommodate multiple addresses and GSTIN. Each week, the TCS BaNCS Product Team organized a A great job done, to each one of you, and thank you very much of GST was immensely challenging for the Indian insurance 8. Offset GST due with “input tax credit” based on GST detailed internal call with SMEs and program managers from once again. industry. paid to vendors and intermediaries, and reconcile each account, to discuss the intricacies and specifics for each Hats Off !!!! One of the central complexities is that GST distinguishes those amounts as needed. insurer so that the common GST framework would be capable Suresh Sankar between intrastate and interstate commerce. 9. For each state, file three GST returns per month, plus of handling any business scenario or variation. The best Executive Vice President and CTO For trade within a single state, or intrastate, both the an annual return, for a total of 37 returns per state. practices established through those calls were then presented Kotak General Insurance Company Ltd. central government and the state collect taxes on the (Therefore, if an insurance company operates in 25 individually to each insurance company for their review, consumption of goods and services. states, that would be 925 returns per year.) advice, and guidance—which fed back into the weekly For trade between states, or interstate, GST is collected 10. Exclude certain policies from GST. For example: internal calls. This cyclical process ensured that all issues were I would like to thank the entire TCS team for smooth by the central government, which then allocates a portion Hut Insurance Scheme, Cattle Insurance under the being identified and addressed in a timely manner. implementation of GST First Phase for policy issuance. to the state where the consumer is located. Swarnajayanti Gram Swarojgar Yojana (SGSY) sustainable During June 2017, the month prior to the GST rollout, the Well done, team TCS. I appreciate each team member for income scheme, Weather Based Crop Insurance, and the subject-matter experts, consultants, and associates at TCS their efforts for 1000-plus deliveries within 20 days’ time To support GST, insurance companies must: Modified Agricultural Insurance Scheme have all been worked tirelessly to uncover any potential problems. Along and support during UAT. A great achievement. 1. Register separately in each state where it has an exempted from GST by the insurance regulator due to with system configurations and customizations, TCS also All senior management of Chola MS appreciates the operating footprint. socioeconomic considerations. provided consultancy advice as needed to insurers’ business smooth implementation for such big changes. 2. Determine in real-time whether any given transaction teams to facilitate rapid adaptation to the new tax regime. Bhaskara Rao Koti is interstate or intrastate. This mammoth tax reform had to be implemented The result was a smooth rollout for each of the 13 Deputy General Manager – IT 3. Determine the location of each customer, service within a stringent timeframe, as the details were still being insurance companies using TCS BaNCS, with a seamless Cholamandalam MS provider, supplier, vendor, or other stakeholder. worked out shortly before the implementation. This led switchover from the prior tax regime to GST at the stroke of General Insurance Company Ltd. 4. Determine the location where the service is being to extensive grey areas, with few answers to be found midnight on July 1, 2017. n

32 33 TCS BaNCS Dialogues TCS BaNCS users share best practices, discuss industry trends, and EVEREST GROUP STATE BANK OF INDIA THE ASIAN BANKER AWARDS influence the product roadmap through TCS BaNCS Dialogues, TCS ranked as “Leader” in Banking BPO, Wins Celent's Model Bank Award 2018; SBI recognized for "largest DBS and TCS were awarded Best Custodian System with meetings recently held in Sao Paulo, Brazil (December 2017), “Leader” in Life & Pensions BPO, and “Star consolidation in the history of Indian banking Implementation for 2018 at The Asian Banker Financial Markets Johannesburg, South Africa (February 2018), London (January Performer” in P&C Insurance BPO State Bank of India was selected as a Model Bank winner by Celent for Awards 2018. DBS migrated to TCS BaNCS for Custody to manage 2018), New York (January 2018), and Singapore (May 2018). TCS was ranked as a “Leader” in the 2017 the year 2018. SBI was chosen for successfully consolidating one bank business growth, normalize operations, and move to the latest report, “Everest Group PEAK Matrix for Life and five other associate banks onto a single core banking platform, technology stack. Within the span of nine months, the solution was & Pensions Insurance BPO.” In the report, with the entire integration completed in six weeks. implemented in Singapore, China, Hong Kong, Indonesia, and India. TCS was noted for its significant presence The consolidation covered 43+ IT applications, 17,500+ products, TCS also received the award among all buyer sizes, comprehensive 200 bank business processes, over 50 billion database records with a for The Best Innovation Centre by a Non-Financial Services London coverage of different processes, and high data size of 25 TB, and over 14 billion data updates. This involved over market share by full-time employees within 50,000 tellers at over 7,000 associate bank branches. Institution in India for 2018. The each process. TCS prepared a detailed capacity management and benchmarking TCS BaNCS Alpha Bank, located in TCS was also ranked as a “Major plan for handling the current volume of over 750 million accounts Bangalore, showcases solutions in Contender” in the 2018 report, “Everest and seamless application processing of more than 150 million machine learning, neural networks, Group PEAK Matrix for P&C insurance BPO,” transactions per day at peak periods. augmented/virtual reality, and which also named TCS a “Star Performer” TCS scaled up the system to process 2 billion accounts at 18,000+ API-fication. Since launch, the Alpha based on its demonstration of strong transactions per second (TPS), thereby delivering assurance to SBI for Bank has made more than 250 Brazil Johannesburg forward and upward movement on the meeting capacity and availability thresholds over the next five years. demonstrations to decision makers PEAK Matrix. from top banks across the globe. In banking and financial services BPO, TCS was ranked as a “Leader” in Everest ZIONS BANCORPORATION Group’s 2018 report, and was noted for Executives from Zions Wins Celent’s Model Bank Awards 2018 for ‘Legacy Transformation’ being one of two firms with a dominating Bancorporation visited news and events news presence across most banking BPO lines Mumbai, India to meet Zions Bancorporation has won Celent’s Model Bank award for “Best Legacy Transformation,” after the successful the TCS team and of business. implementation of TCS BaNCS for Core Banking. celebrate their go-live. The selection process for the Model Bank Awards involves a rigorous evaluation of the nominations submitted by financial institutions by Celent’s Banking analyst team. Submissions are judged on three India FIX primary criteria: demonstrable business benefits of implemented initiatives; the degree of innovation Conference 2017 relative to the industry’s standards; and the technology or implementation excellence. Sameer Rawtani represented “We rarely see this depth of partnership between a bank and a vendor, and Zions’ willingness to be TCS BaNCS in a panel discussion a trailblazer by using an international firm to implement a modern, modular, and flexible core system on low latency and timestamps at speaks to the vision of its leadership,” said Stephen Greer, Senior Analyst at Celent. the India FIX Conference, the leading Read Celent’s case study on Zions Bancorporation here: http://bit.ly/zions-celent electronic trading event in India, held September 2017 in Mumbai.

Before and after "Masala Dosa in the Face." SIFMA OPS 2018 UTAH FOOD BANK receives October 22-25, 2018 TCS was a Diamond Sponsor at the contributions from Zions and TCS SIFMA Operations Conference & Exhibition, With TCS’ participation, Zions Bancorporation collected more than held May 2018 in Phoenix, Arizona. $13,000 for Utah Food Bank, which distributes food free-of-charge to a network of 141 partner agencies located throughout the State of Utah. The TCS team showcased the products, Among the top five donation collectors was R Lakshminarashiman from services, and capabilities of TCS BaNCS. The 11th Annual TCS BaNCS Customer Forum TCS, who was "rewarded" with a “Pie in the Face.” He also introduced to will take place in Sydney on October 24th, 2018, At the event, TCS sponsored the TCS Fit4life the Zions organization a popular pie-shaped dish from Indian cuisine, followed by the 8th Annual FT-TCS BaNCS Corporate Challenge. by way of a new concept: "Masala Dosa in the Face." Financial Leaders Dinner Forum.

34 35