The document discusses IBM software solutions for connectivity and integration challenges in the insurance industry. It describes the complex networks of partner companies and need for secure data movement and integration. It then summarizes IBM's Sterling B2B Integrator, Managed File Transfer, and B2B Network solutions which help address challenges of business-to-business integration, managed file transfer, and enterprise integration. Finally, it provides examples of how IBM has implemented solutions for insurers to connect to medical practitioners, automotive agencies, and call centers.

1. IBM Software
IBM solutions for
connectivity and
integration in the
insurance industry
Helping deliver secure data movement and seamless
business integration
Executive summary
The Business Collaboration Networks (BCNs) that are fundamental to
business operations in the insurance industry feature complex
hierarchies of partner companies, complex rounds of multi-tiered
negotiations, complex products, and diverse channels of
communication. Add the mandatory needs for security and regulatory
compliance to the mix, and the challenges become clear. IBM®
Connectivity and Integration can help address these challenges by
enabling you to connect, communicate and collaborate even better with
the suppliers, customers and partners in your BCN.
The IBM solution
IBM®
Sterling B2B Integrator, IBM®
Sterling Managed File Transfer
and the IBM®
Sterling B2B Network connect people, systems, and
technology and are designed to enable the seamless and safeguarded
integration of business processes.
These solutions deliver a comprehensive set of industry-leading
capabilities that address the critical challenges of:
business-to-business integration•
managed file transfer and•
enterprise integration•
IBM Connectivity and Integration helps enable customers to solve their
integration challenges, both inside and outside their enterprise, by
transforming and signifcantly enhancing the business with a
comprehensive set of solutions rather than relying on multiple vendors
and complex cross-vendor implementations. As a result, insurance
companies can capture the greatest amounts of value and ROI, while
reducing the complexity and total ownership cost of implementing a
comprehensive integration strategy.

2. The insurance industry challenges
Consolidating data is a significant challenge. Transactions
involve large volumes of data, including complex contracts,
schedules of definition, and image files. Transactions can also
involve rounds of negotiation during which the risk is assessed
and the price is fixed, or the loss is evaluated and claims are
approved or adjusted. Sharing and managing data is part of
this challenge. Information has to be exchanged sequentially
though a chain of partner companies that share no technology
standards and have very different IT capabilities. Yet another
part of this challenge is a large number of business partners
and communication channels. At the hub of the collaboration
network is the insurance carrier (or re-insurer) who is
frustrated by the complexity, cost, service delays, and increased
risk imposed by multiple diverse business communication
channels (some manual rather than electronic).
The carrier is further frustrated by poor integration across
technology siloes inside its own enterprise.
A second big challenge is achieving revenue growth.
Customers’ situations change frequently, which results in
changes in the products and services they need. Products
themselves also change frequently. Growth in this
environment can be difficult and slow when matching
customer needs with products in a manual process.
Information security is also a challenge for the insurance
industry. The lack of secure integration compromises
customer relationship management, impedes business
development, and adds risks in data security and external
regulatory compliance. Products are specialized and complex,
especially for customized commercial lines business.
Quotation negotiations, risk assessment queries, and detailed
contracts all add to the volume of confidential information
that need to be exchanged securely and rapidly. The insurance
business and its brands rely on consumer loyalty and trust, so
maintenance of customer data, together with prompt, accurate
evaluation and settlement of claims are critical.
IBM Software
2
:At the hub of the collaboration network is the insurance carrier (or re-insurer) who is frustrated by the complexity, cost, service delays,
and increased risk imposed by the lack of integration..
Insurance Business Collaboration Network

3. IBM Software
3
Issue Capability Benefit
Consolidating data – the
need to create efficiencies
and reduce costs in sharing
and managing information
among many partners across
many channels by increasing
straight-through processing
Streamlining data movement with options such as:
• Consolidated data communications connectivity
between multiple partner companies in a
fragmented distribution chain, automatically
translating data formats and bridging across
diverse technologies
• Increased straight-through processing, with
automated error handling
• Collation and reconciliation of customer data with
policy data, risk exposure data and payment data
• Ability to accelerate receipt and processing of risk
exposure data
• Faster processing of premium receipt/revenue
processing and claims settlement/payment
processing
• Becomes ‘easier to do business with’
• Becomes respected for enabling community
connectivity
• Acquires reputation for improved efficiency and
accuracy, so enhancing the brand
• Is able to expedite real-time pricing transmissions and
complex policy negotiations
• Improves cash flow visibility and liquidity management
through greater certainty of payment movements
• Improves risk exposure management and provision
through faster transmission of ‘at risk’ data
• Reduces costs and errors through increased data
movement integration with fewer manual processes
Achieving revenue growth –
the need to preserve and
grow revenue by retaining
and developing customers
Automation improves growth with options like:
• Consolidation and matching of customer data and
status intelligence
• Efficient movement of data to and from CRM and
CCM systems
• Appropriate movement of customer data to and
from diverse authorized distributors
• Is able to synchronize the promotion of product
launches and communication of product updates
across multiple channels, both direct and through
partners
• Is able to cross-sell to existing customers based
upon more comprehensive and current customer
information
• Has even better current visibility of work-in-progress,
so can advise current status to customers, partners
and regulators
Information security – the
need to improve operational
risk management and data
security practices
Comprehensive world-class data security,
featuring options including:
• Managed file transfer to replace insecure FTP
transmissions
• Messaging transmissions
• Process recovery and restart
• Encryption to protect confidential and sensitive
customer data, both in storage and in transit
• Perimeter security
• User authentication
• Verifiable delivery
• Authenticated customer/partner self-service
• Improves its defense against data interceptions and
losses
• Increases the protection of the brand and reputation
• Reduces operational risk
• Reduces potential for fraud that could result in
significant costs and losses
• Support efforts to enable compliance with national,
state and industry data protection legislation and
other legal/regulatory obligations
• Reduces the associated risk of penalties/fines

4. IBM Software
4
IBM Connectivity and Integration in the
insurance industry
Tactical, point solutions can be achieved using different,
individual components from many vendors, but the
smarter option is a comprehensive suite from one vendor.
IBM Connectivity and Integration is a comprehensive
infrastructure integration solution. Incremental, related
components can be added in stages, to limit operational risk,
while progressively achieving consolidated data movement
and process integration control, both internally and across the
entire Business Collaboration Network.
IBM in the insurance industry
IBM offers a comprehensive business data movement and
process integration solutions to over 800 insurance
organizations worldwide.
The IBM portfolio is distinct in providing data authorization,
analysis, validation, translation (between many packaged data
standards) and routing, coupled with security-rich data
management and network delivery, fully integrated into an
extensible and scalable solution.
IBM builds bridges between the different technologies used
across insurance communities, enabling insurance
e-commerce operations and efficient, safeguarded
transmission of insurance transaction data.
IBM connects a Eurozone healthcare insurer to a network of
medical practitioners, enabling rules-driven format validation
of claims files, transmission of files to the carrier, integration
into carrier claims processing systems, and the return of
settlement confirmations to the claimants.
IBM connects a major property and casualty insurer to an
automotive agency distributor that is the point of sale for
multiple personal lines insurance products to its consumers.
IBM connects a major insurance call center to six multi-
national carriers, enabling a single suite of call center policy
administration applications designed to connect seamlessly to
diverse carrier technologies.

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