An insurance firm eases regulatory compliance while reducing risk

Encouraging more accurate, timely risk reporting with an IBM Cloud solution

Published on 29-May-2013

"IBM delivered a solution that provided more accurate, timely reporting. As a result, the organization can accommodate larger policy volumes with existing capital—and do so without increased risk." - An insurance firm

Customer:
An insurance firm

Industry:
Insurance

Overview

This insurance firm offers a wealth of life and general insurance services to more than 43 million global customers. The company is one of the largest general insurance providers in the world, operating in 21 countries.

Business need:
Facing increased regulatory burdens, an insurance company wanted to update its risk management system to simplify oversight.

Solution:
Working with IBM® Global Technology Services® – Integrated Technology Services, the company migrated to a cloud-based infrastructure.

Benefits:
With more accurate reporting on a reliable infrastructure, the firm can accommodate larger policy volumes without increased risk.

Case Study

This insurance firm offers a wealth of life and general insurance services to more than 43 million global customers. The company is one of the largest general insurance providers in the world, operating in 21 countries.

Challenge

With the recent global economic downturn, there is more scrutiny regarding the stability of businesses operating within the financial sector. And with risk management so critical to the successful operation of insurance agencies, such companies also face increased legislation. For example, the European Union (EU) recently passed the Solvency II directive, a regulation that establishes stringent, uniform standards regarding the amount of capital that insurance companies must keep on hand to offset the risks of their policies.

As a result, this insurance firm needed to create a more robust risk management system that could perform the necessary calculations. Otherwise, the organization would need to rely on the figures established by the EU, which would tie up larger pools of capital. Of course, risk management was not a foreign concept to the business, as it had maintained a third-party tool to support these efforts in the past. Unfortunately, the existing system would be overtaxed by the burdens dictated in the new regulation.

Solution

Impressed with the potential advantages offered by a cloud-based approach to risk management, the insurance firm worked with IBM Global Technology Services – Integrated Technology Services to optimize its enterprise risk management efforts. For the initial stage of the integrated risk management project, IBM worked with the organization to migrate operations to the IBM SmartCloud® Enterprise infrastructure, taking advantage of the flexible nature of the architecture to quickly and easily construct testing and development environments. For the final production environment, however, the business deployed the new risk management solution within a private cloud infrastructure that the IBM team helped design and deploy.

By choosing a cloud-based strategy, the business can readily adapt the underlying architecture of the risk management system to meet shifting requirements. Similarly, the platform can better support fluctuating analysis workloads, which tend to peak shortly before reports are due to the Financial Services Authority. The new risk management solution also helps the insurance firm more readily comply with Solvency II mandates, delivering regular, in-depth reporting at weekly, monthly and quarterly intervals.

On an ongoing basis, the Integrated Technology Services staff provides the insurance firm with management support for the cloud environment, including monitoring and maintenance services.

Benefits
● Helps the business support a larger volume of insurance policies with existing capital, facilitating business growth
● Streamlines reporting efforts while delivering more accurate results that help the firm more easily meet regulatory standards
● Establishes a flexible operating architecture that can readily accommodate business growth and varying workloads

For more information

To learn more about the IBM SmartCloud Enterprise infrastructure, please contact your IBM marketing representative or IBM Business Partner, or visit the following website: ibm.com/cloud

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Products and services used

IBM products and services that were used in this case study.

Service:
GTS Integrated Technology Services, IBM SmartCloud Enterprise

Legal Information

© Copyright IBM Corporation 2013 IBM Corporation Global Technology Services Route 100 Somers, NY 10589 Produced in the United States of America May 2013 IBM, the IBM logo, ibm.com, Global Technology Services, and IBM SmartCloud are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Other product and service names might be trademarks of IBM or other companies. A current list of IBM trademarks is available on the web at “Copyright and trademark information” at ibm.com/legal/copytrade.shtml . This document is current as of the initial date of publication and may be changed by IBM at any time. Not all offerings are available in every country in which IBM operates. THE INFORMATION IN THIS DOCUMENT IS PROVIDED “AS IS” WITHOUT ANY WARRANTY, EXPRESS OR IMPLIED, INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT. IBM products are warranted according to the terms and conditions of the agreements under which they are provided. The client is responsible for ensuring compliance with laws and regulations applicable to it. IBM does not provide legal advice or represent or warrant that its services or products will ensure that the client is in compliance with any law or regulation.