Uwe Koch from Talanx - Talanx - our journey to the digital world of insurance with the help of process automation - Camunda Day Oslo 2018

Talanx - our journey to the
digital world of insurance with
the help of process automation
Uwe Koch, Enterprise-Architektur und Security
Talanx Systeme AG,
Camunda Day Oslo, June 21th 2018

Talanx - our journey to the digital world of insurance with the help of process automation2
The Talanx Group
 With premium income of EUR 33.1 billion (2017) and about 22,000 employees,
Talanx is one of the major European insurance groups.
 Industrial insurance: One of the major providers of commercial lines in Germany,
excellent position in major European markets
 Life insurance: Belongs to the largest life insurers in Germany
 One of the leading bancassurance providers in Germany
 Reinsurance: Global player with Hannover Re as one of the leading reinsurers
in the world
 Investments: EUR 118.7 billion*
 Financial strength ratings: Standard & Poor’s: A+/stable (strong)**
A.M. Best: A/stable (excellent)***
* as at 31.12.2017
** Talanx Primary Insurance Group
*** Talanx AG and its major operating subsidiaries

The Talanx Group
 Talanx operates in five business areas:
 Retail Germany
 Retail International
 Industrial Lines
 Reinsurance (Property/Casualty Reinsurance, Life/Health Reinsurance)
 Financial Services
 The Talanx Group can look back on more than one hundred years of
experience, yet we are a young, dynamic company
 Talanx is active in about moren than 150 countries with a workforce
numbering some 22,000 employees as of year-end 2017
 Talanx headquarters is based in Hannover

Talanx Group: Five business areas
Industrial
Lines
Retail
International
Financial
Services
ReinsuranceRetail Germany

Our ranking in Germany: Unchanged on rank 3
Source: Own presentation based on annual reports
As at: 15.03.2018
Rank
Company/Group
Gross premiums
(EUR billion)
2017 2016 2017 2016
1 1 Allianz 119.5 116.2
2 2 Munich Re 48.9 48.9
3 3 Talanx-Konzern 33.1 31.1
4 4 R+V1 14.8 14.8
5 5 Debeka1 9.8 9.8
6 6 VKB Versicherungskammer
Bayern1 7.8 7.8
7 7 HUK1 6.9 6.9
8 8 Signal Iduna1 5.6 5.6
9 9 Gothaer1 4.4 4.4
10 10 W&W1 4.0 4.0

2017 among the 7 largest insurance providers in Europe
1
2
3
5
4
6
10
8
9
7
1
2
3
4
5
6
7
8
9
10
2017 | 2016 Gross premiums (EUR billion)
Allianz
AXA1
Generali1
Prudential2
Munich Re
Zurich
CNP3
Aviva3
Swiss Re
50.3
119.5
94.2
68.5
49.1
41.3
33.1
32.5
31.6
31.5
1 prior-year‘s figures 2 gross written premium 3 preliminary figures Source: annual reports, as at 15.03.2018

Talanx worldwide – subsidiaries and branches
5
continents
about
150
countries
22,000
employees worldwide
(As at December 2017)
10,700
employees outside
Germany
(As at December 2017)
America Europe HU Hungary SK Slovakia Africa Asia/Pacific
AR Argentina AT Austria IE Ireland TR Turkey ZA South Africa BH Bahrain
BM Bermuda BE Belgium IT Italy UK UK CN China
BR Brazil CH Switzerland LU Luxembourg Australia IN India
CA Canada CZ Czech Republic NL Netherland AU Australia JP Japan
CL Chile DE Germany NO Norway KR Korea
CO Colombia DK Denmark PL Poland MY Malaysia
MX Mexico ES Spain RU Russia SG Singapore
PE Peru FR France SE Sweden TW Taiwan
US USA GR Greece
UY Uruguay

Focus of digitalization is on
improving the grade of automated processing
Phone
Inputmanagement
(Mail, Facsimile,Email)
Webservices
(intern & extern)
& portals
Protocol/
Archive
Result-
communication
Manual processing
Automated processing
Work list
Initialization Work list Work processing Finalization
@
Batch
www

Phone
Inputmanagement
Webservices
(intern & extern)
& portals
Initialization
@
www
The quality of the input data is the base for a successful process
automation
manual
processable
work
automatic
processable
work
M
M
M
Work list
Input data quality and quantity
 input channels differ in data quality and quantity
(e.g. unidirectional communication)
 Improvements: plausibility checks / scanning, indexing and
validation (input management)
A
A
A
M = manual part
A = automated part
Low specificated tasks
High specificated tasks

Manual processing via UI vs.
Automated processing via service API
Protocol/
Archive
(Result-)
Communication
Batch
Business
application
Services
Clerk
Processes
Work processing Finalization
Synchronisation
 Always sync state of automated process in a work list item, viewable by the clerk.
Phone
Inputmanagement
Webservices
(intern & extern)
& portals
Initialization
@
www
manual
processable
work
automatic
processable
work
M
M
M
Work list
A
A
A

Protocol/
Archive
(Result-)
Communication
Batch
Business
application
Services
Clerk
Processes
Phone
Inputmanagement
Webservices
(intern & extern)
& portals
Initialization
@
www
manual
processable
work
automatic
processable
work
M
M
M
Work list
A
A
A
Focus

Process Engine
 Orchestrate service calls to build a real business workflow
 Started with ApplyInsurance, CancelInsurance, RefurbishInsurance
ESB – Enterprise Service Bus
 Central infrastructure to use and deliver services
 Transparency of service host system
 Transactionality (garantee of service execution) – retry mechanism
 Monitoring, reporting
Batch
„Integration happens exactly when nationality doesn‘t play any role“
Marina Zuber
Integration data models and services group wide
 Objects (Partner, Policy, Mandate, …) and
 Services (PartnerSearch/-Modify, MandateProcessing…)
 Start: UML Modelling (today: DSL, text based)

Milestones of process automation 1/2
Integration architecture
with process automation
 Data & service modelling
 SOA , ESB, BPEL notation12012
• ApplyInsuranceProcess
• CancelInsuranceProcess
• Long running RefurbishInsuranceProcess ( 2 part idea)

 SOA , ESB, BPEL notation
Process automation is reliable and useful
with process automation12012

Monitoring / reporting in the works

Need for automation increases heavily

Need for automation encreases heavily
Automation costs, scaling, skill

PoC Camunda (inkl.
port ApplyInsurance-
Process)
 Blackbox migration
 BPMN, Java, Websphere,ESB22014
Check integration capacity
 ESB pattern (sync, async, async-callback)
 Java development process, deployment
 Websphere, Oracle operation
 BPMN modelling
 Cockpit plugin: monitoring
 (release upgrade process engine, support check)
 1:1 port ApplyInsuranceProcess (test stage)

PoC Camunda (inkl.
Process)
Check integration capacity
 ESB pattern (sync, async, async-callback)
 Java development process, deployment
 Websphere, Oracle operation
 BPMN modelling
 Cockpit plugin: monitoring
 (release upgrade process engine, support check)
 1:1 port ApplyInsuranceProcess (test stage)

Architecture approval
Camunda
 Maintenance costs + ROI
migration efforts32015
PoC Camunda (inkl.
Process)

Architecture approval
Camunda
 Maintenance costs + ROI
migration efforts32015
PoC Camunda (inkl.
Process)
Digital car insurance
ApplyInsuranceProcess42016

„Originally we just looked out to automate our processes…“
22
Foto: petraraab.blogspot.com
Culture
Organisation
Methods
Technology
Architecture
Businessmodel
Process-
automation
Process automation means also organisational change management
 Business processes encompass
essential parts of value creation chain.
So if business processes are being
changed, this does have considerable
effects on the whole business.
 Hence being successful on process
automation means also considering the
respective disciplines.
Talanx - our journey to the digital world of insurance with the help of process automation

Agile procedure models (extract)
Kanban as base for agile project management
„If you want another result – change your approach“
Extreme
Programming (XP)
Scrum
Kanban
Agile
Unified Process
…
Kanban recommends that something must be done, but doesn‘t regulate how it is done.
23 Talanx - our journey to the digital world of insurance with the help of process automation23

Division
IT
Project
1
Project
2
Task
…
Production/
Projects
Solution space: Process workshop Implementation Output
Automated
process
A
Semi-automated
process
B
Monitoringandsupervisingofprocesscosts
1.Receiving task/
process
3. Feedback /
confirmation of
methods an
prototype
2. Process modelling,
testing methods,
specifications and
solution patterns
4. Assigning
implementation
Process workshop:
Iterative und interdisciplinary optimization of processes
A collaborative approach with „garage“ character
„Process workshop“ seen as a process
Interdisciplinary core team
consisting of business analysts,
process manager, process implementers,
experts from involved subject areas
24
Culture
24 Talanx - our journey to the digital world of insurance with the help of process automation

From process to solution
Gradually increasing the degree of maturity in design
25
Methods
Creative approaches for finding solution
patterns and achieving an optimized
process flow
1
High-level precision in finalizing
process design and implementation
E2E view
2
Process workshop

„A model becomes alive…“
Technical business model
Focusses on automation (Camunda)
3
Process- and service implementation
Java, technical refinements of the model,
continuous feedback for the business
4
Process workshop & IT

BPMN (Business Process Model and Notation)
models capture Talanx

BPMN (Business Process Model and Notation)
„Language is the dress of thought.‘‘
Functional
process
Modeling in the process workshop
 Business analysts
 Represent the funcional process in BPMN
 From continuous text to models
Process implementation team
 Common tooling
 Implementation starts on base of the
functional model
 No interpretation of the model by the
developer
 Common processable language BPMN
 Understandable processes for both sides
 Process monitoring via console
 Errors can be analyzed and fixed together
Business – IT alignment – next generation
Technical
process
Samuel Johnson

DMN (Decision Model and Notation)
Advantages similar to BPMN
RulesBusiness defines rules
 Simple look of rules
 Responsible for rules
 From continuous text to tables
Process implementation team
 No media disruption
 1:1 use of table rules as base
of the implementation
 No misunderstanding / interpretation of rules
by the development team
Business – IT Alignment – Next Generation
 Processable rules understandable for all
 Analogy by BPMN for processes
 Monitoring of rules in cockpit view
29

Example
ApplyInsuranceProcess (car) – a complete digital product
Input channels
 HDI.de
 Check24 (comparison portal)
 Agents portal NaFi

New business models opened up new markets
31
Business model
Current Functionalities (2016)
 TÜV certified registration process
with postal PIN transmission
 Login and logout process
 Display and administration of personal data
 Contract overview (automobile online products)
 Display of contract details
 Digital access to correspondences
 Downloading documents
 View and change address/ bank data
 Make contact in case of claims
 Start a correspondence
 Broad Q&A concept
(in order to reduce further inquiries)
 Responsive webdesign
 Bank data validation
 Change payment method
 Extended automatic reminder and tracking
 Update user and contact data
 Change automobile tariff criteria

Keep it simple ?
In any case from customers view!
Enhancement
New
Roles &
Resps. Policy mgmt
SAP(car)
Firewall
Quotation
System
Partner
Calculation
Access
Protection
Archive
API
Gateway
Intranet
DMZ
ESB
Work List
Portal
Firewall
hdi.de
Portal
Internet
hdi.de Check24.de
724365
Basic Infrastructure
Established Systems
Processes
(Camunda)

33
Hollywood movie: Marilyn Monroe, Tony Curtis, Jack Lemmon
„Some like it hot“ - Camunda heatmap

„I did it my way“ – plugin Camunda Cockpit
CSV Export
Song: Frank Sinatra

Autumn‘s attempt in process automation was quite successful
Implementation of BPMN-based processes in renewed system landscape
 Already during the design phase high
transparency ist given for all parties involved
 Defects and optimisation possibilities in
productive operation can be identified through
all involved service provider:
 Simultaneous a significant increase in
automatic processing and processing
volume is made within a few weeks
 Already in the third month after GoLive the
automatic processing rate of most selling
distributor was 97%.
35
0
10
20
30
40
50
60
70
80
90
100
4644 5250484240
Rate Parts

E2E Monitoring is more than monitoring the automated part
Enhancement
New
Roles &
Resps. Policy mgmt
SAP(car)
Firewall
Quotation
System
Partner
Calculation
Access
Protection
Archive
API
Gateway
Intranet
DMZ
ESB
Work List
Portal
Firewall
hdi.de
Portal
Internet
hdi.de Check24.de
724365
Basic Infrastructure
Established Systems
Processes
(Camunda)

E2E View – Process events
UseCase E2E Reporting
E2E presentation in the data warehouse
 Process id for correlation
 Enrichment of data at DWH level
 Dashboards
Portal
Policy
mgmt.
Archive
Process start
Event DB
Event API
1
2
3 Export
Create Event
DWH
…

UseCase state feedback
State feedback for caller
 Asynchronous start of the process without direct response
 State needed (progress, document/policy generation)
 Proactive response
Portal
Policy
mgmt.
Archive
Process start
Event DB
Event API
1
2
3 State feedback
Create Event

UseCase occasional process start
Start of process
 Leads, campaigns because of occurance of events
e.g. claim reported => start cross selling with additional offer
 Change of address => Start ModificatePolicyProcess (e.g. homeowners insurance)
Portal
Process start1
2
3 Process start
Policy
mgmt.
Archive
Event DB
Event API
Create Event

UseCase effects on long running processes
Reaction of long running processes to relevant modifications
 Basic conditions changed
 Example: anual rate property check (car)
Policy
mgmt.
1
3
Create event
„Policy cancelled“
Clerk
Cancel policy
Yearly
2
1
Process start
Request
properties of policy rates
Event DB
Event API

UseCase effects on long running processes
1
4
Event
„Policy
cancelled“
Clerk
Yearly
5 Process
cancelled
Reaction of long running processes to relevant modifications
 Adhoc reaction to change of basic conditions (ensure actual reporting)
 Generally already implemented for manual cancellation
1
Policy
mgmt.
3
Create event
„Policy cancelled“
Cancel policy2
Event DB
Event API
Process start
Request
properties of policy rates

Open Questions about events
Trust when sending …
 How can I be sure that not everybody gets this event ? Because I categorize them as a secret?
...and receiving events
 How can I be sure, that this event is true and not modified by someone unauthorized?
Or: Is this event an interpretation or an assumption?
- Prevent „Fake news“ -

Process events  Build process event system
 Encrease processes retail52017

Process events
Portal industry
car fleets
 Build process event system
 Encrease processes retail
 Start process development
industry: ModifyReferenceData
5
6
2017
2017

Process events
Portal industry
car fleets
Claim
industry international
PreClaimRegistration, 24x7
5
6
7
2017
2017
2017

Process events
Portal industry
car fleets
Claim
industry international
Start process automation life insurance
microservice – like architecture
PreClaimRegistration, 24x7
5
6
7
8
2017
2017
2018
2017

Business processes, the microservice idea
Embedded process engine, dedicated database, REST API
adapters for legacy backends
Microservice
„Process
preparation“
embedded
Camunda Engine
Microservice
A
Camunda
DB
Microservice
X
…
Microservice
Process events
Camunda
Cockpit
Service
„GetPolicyData “
Service
„SearchWorkItem “
Service
„ModifyRate “
Backend APIs„Process“-microservices
Camunda
DB
Camunda
Cockpit
Camunda
DB
Process state event
REST/JSON
embedded
Camunda Engine
embedded
Camunda Engine
Camunda
Cockpit
R&D

Contact
Uwe Koch
Talanx Systeme AG
uwe.koch@talanx.com
Thank you for listening!
Any questions?
Feel free to contact me!

Big Picture Process Automation
Process Control
BAM (Business
acitivity monitoring)
• Process controlling
• CIP
ESB - Middleware
Services
(Manual)
Workflow
Archive
Partner
Mgmt
Policy
Mgmt
Collecti. /
Disburse.
Output
Mgmt
Agents
Mgmt
Prov.
Police
Layout
Input
Mgmt
Quotation
System
Process
initiation
Business Domain
• Micro Processes
• Line Specific Processes
Macro Process Control
• Definition of general
processes and use cases
3. Telephony1)
1. Documents1)
2. Digitali-
zation1)
1) Input chancels respectively process initiator
Processing and Information System
• Inbox
• User Interface
• Tasks and Processes
„A tidy house, a tidy mind.“
49
Architecture

Protocol/
Archive
(Result-)
Communication
Batch
Business
application
Services
Clerk
Processes
Phone
Inputmanagement
Webservices
(intern & extern)
& portals
Initialization
@
www
manual
processable
work
automatic
processable
work
M
M
M
Work list
A
A
A
Fokus

Process automation
Service orchestration(including manual tasks)
High instance volume
Reoccuring process
Complex workflow
Service APIs available and reasonable
Target: Automatic processing
Focus: Using target application landscape
Can be supplied in the mid- to long term
IT ressources
Robotics
Surface orchestration (mostly Copy & Paste)
Low instance volume
Oneway/junk process
Simple workflow
Servicecalls not possible / reasonable
Target: Automation of manual tasks (with Uis)
Focus: Using existing application‘s UI
Can be supplied in the short term
Business ressources
 Transparent process automation, reporting and optiomization (high
process volume) on base of service orchestration
 Quick macro recording and parameterized replaying of manual
tasks using existing Uis of existing applications
Process automation and robotics –
A quick overview

Example
Automated processing of (paper) questionnaires
52
Policy holder
Shipment of completed
questionnaire to
HDI
Questionnaire
Forwarding questionnaire
to
input management
Input management
Digital input of
information (mostly
automated scanned and
indexed
Robot „Futura“
Automatic processing
via interaction
between necessary
applications
Forwarding of
preprocessed input
to the robot
Policy
management
3
Internet
Explorer
 Remote control existing
applications via user interface
 Copy & Paste
21
Work item list Outlook Manual
creation of
documents
Mozilla
Firefox
Excel
Business
In case of failure the
work item is redirected to
the clerk, e.g.
handwritten notes on the
questionnaire
Automatic processing4
Rejection to
manual
processing
4
Batch

Uwe Koch from Talanx - Talanx - our journey to the digital world of insurance with the help of process automation - Camunda Day Oslo 2018

Recomendados

Recomendados

Más contenido relacionado

La actualidad más candente

La actualidad más candente (20)

Similar a Uwe Koch from Talanx - Talanx - our journey to the digital world of insurance with the help of process automation - Camunda Day Oslo 2018

Similar a Uwe Koch from Talanx - Talanx - our journey to the digital world of insurance with the help of process automation - Camunda Day Oslo 2018 (20)

Más de camunda services GmbH

Más de camunda services GmbH (20)

Último

Último (20)

Uwe Koch from Talanx - Talanx - our journey to the digital world of insurance with the help of process automation - Camunda Day Oslo 2018