[LISA - Life Insurance System]

LISA - Life Insurance System

Life Insurance System Automated (LISA) automates the management of both individual and corporate life insurance contracts; the computations of reserves, provisions and allowances; investment income distribution; settlements with agents and reinsurers; and processing payment documents received. Currently, implemented in this system is the whole complex of requirements of the State Commission for the Regulation of the Financial Service Markets for software for a personified record of life insurance contracts.
A three-level architecture of LISA enables a common information space to be created in all of the company's branches and representative offices.
In creating the system, use was made of a commercial Oracle DBMS which is the leader in the market of DBMS for corporate information systems. A high reliability and performance of Oracle DBMS ensure the storage of and processing large volumes of information.

Insurance Contracts Management

Implemented in this system is the automation of the entire life cycle of an insurance contract: from the application of a customer through the issuance of an insurance policy and on, with recording all the alterations, modifications and amendments to the contract, with the analysis of premiums paid which are imported from Customer-Bank systems, and tracking events under the contract.

Principal Functions:

  • The computation of insurance rates for insurance programs and insurance risks;
  • The management of both individual and corporate life insurance contracts: execution; underwriting; producing an insurance policy; reduction; payments by installments; alterations, modifications and amendments to the contract;
  • Producing a time schedule of expected insurance premiums;
  • Lending of an insured on redemption sum. An automated computation of a maximum possible loan and interest thereon; the preparation of a time schedule of loan body and interest repayment;
  • The computation of mathematical reserves by date;
  • The determination of contracts for which the Insureds have failed to pay premiums in full. The determination of penalties;
  • Recording an insured event (accident). The determination of the amounts of insurance indemnities;
  • An early termination of the contract with or without payment of guaranteed amounts;
  • The indexation of an insurance contract to cover (or minimize) inflation risks. The ability exists of revising every year the amount of insured's premiums and the amount of insurance liability based on investment income for the prior year. The insured may accept or not accept the terms and conditions of such indexation;
  • Recording an additional investment income/bonuses;
  • The automation of information search process during the mass processing of all possible documents: correspondence related to the execution of policies; in underwriting; in settlement and during customary procedures of transaction (such as premium reminders, the issues of invoices for premium payment, etc.) through the assignment of barred codes to these documents by the system;
  • The maintenance of the versions of the contracts in the terms and conditions whereof alterations and modifications were made; and
  • Tuning insurance rules, insurance programs, and the rules of insurance rate computation.

Alteration of Insurance Terms

Upon making any alterations or modifications of the terms and conditions of insurance contracts, LISA recalculates automatically the rates taking account of the previous terms and conditions and premiums already paid under these contracts, reserves accumulated, and bonuses distributed. All the previous versions of contracts are available for looking through and comparing the alterations made.
Furthermore, LISA takes account of the possibility of the existence of multiple versions of insurance programs, of the methods of actuarial calculations, of the terms provided for agency agreements. Information about such versions is stored in the system and is used automatically during the performance of transactions.

Payment Document Import

Implemented in the system are multiple interfaces to various Customer-Bank systems employed in Ukraine this enabling LISA to download payment documents posted to insurer's settlement accounts, to look through these documents and compare their amounts with premiums expected under insurance contracts. Where a contract for settlement and cash services and the receipt of premiums from insureds exists, the terms and conditions of these services (fees and commissions of banks), as well as the possibility of a structured purpose of payment for automatic comparison of payment with an expected premium are taken into account.

LISA enables to perform the following payment processing operations:

  • The download of payment documents from external systems (Customer-Bank systems);
  • Keeping a download protocol;
  • Processing the payment documents in a manual mode (entry, revision, deletion);
  • The identification of insurance payment documents (the identification of the payer, the insured or the policies under which payment has been made);
  • The distribution of an amount of a document in accordance with the relevant insurance premium time schedule under particular insurance contracts;
  • The cancellation of a distribution operation performed erroneously.

Automatic Payment Tracking & Sending Letters

In the case of very large volumes of data, it is impossible to track manually all the events under insurance contracts. LISA fixes automatically the time of a regular payment under an insurance contract and tracks permanently whether or not the respective payment document was received. In accordance with settings, LISA notifies the user of that, under certain insurance contracts, premium has become due and payable (or premium is overdue) and enables an official letter to be produced automatically with respect to each such insurance contract. There only remains for the operator to send these letters to the insureds' addresses.
LISA enables the records of sending letters to be produced in an electronic form for the purpose of outsourcing activities in printing and sending letters and notices.

Insurance Programs & Business Partners

LISA's database stores all information about the terms of insurance programs within the company and about business partners: insureds, agents, and reinsurers. A flexible, open structure enables the insurance programs and rules to be tuned in any desired way.

Actuarial Record-Keeping

Actuarial records in LISA are kept following the rules accepted in an insurance company. The open interface makes it possible to tune calculation methods as desired - it is enough to simply specify the name of calculation function or procedure in the system settings. We are ready to implement, in LISA, the methods of actuarial record-keeping employed within a particular company while keeping this confidential. The creation of and changing the functions and procedures of actuarial calculations may also be done by skilled experts of IT Department of the insurance company.

Principal Functions:

  • The computation of net rates by date for all the insurance programs and risks;
  • The computation and storage of computed values of long-term liability allowances, insurance payment allowances, bonus allowances, advance contribution allowances, allowances for claimed but not settled damages; and
  • Investment income distribution, the determination of bonuses for each insurance contract, and saving computed values.

Mutual Settlements under Agency Agreements

  • Keeping records of the basic rate terms of determining an agent's commission depending on various parameters such as an insurance program, contract validity terms, etc. Keeping records of terms effective during certain periods of time;
  • Keeping the list of intermediaries (agents) and subagents;
  • Keeping records of agency agreements and the terms and conditions thereof including the number of versions by validity term;
  • The computation of an agent's commission based on the terms and conditions of agency agreements, details of insurance contracts, and premium paid. Producing a Work Performed Certificate.

CS::iLife Interface

CS::iLife is an interface of data exchange between banks and insurance companies; it is intended to automate the exchange (between the band's automation systems and LISA) of data about life insurance contracts entered into by loan borrowers and about insurance premium received. CS::iLife is implemented in ABS B2 and LISA. CS::iLife provides for the possibility of integration with other automation systems of banks.

Investment Income Distribution

In this system, investment income is also distributed automatically, in accordance with settings. Investment income may be distributed both among all of the contracts and among contract groups. Within a group, investment income may be distributed in proportion to allowances accumulated.

Insurance Company Activity Analysis

Building analytical reports based on aggregated figures of the activities of an insurance company computed by LISA.

LISA Interface

The user's workstation has been developed for the Windows environment and has been implemented in the form of a standard Win32 Client this making it possible to learn easily and quickly to operate the system. Information in provided in a convenient and understandable form. In addition, the system offers the opportunity of fast-access retrieval, an arbitrary grouping and sorting of data, and producing reports required in a printed form.

System Administration

  • Keeping records of users' accounts;
  • The distribution of user rights of access to the data and functions of the system;
  • Filter and report setting;
  • Message subsystem setting; and
  • System monitoring setting.

Data Protection

LISA provides a reliable data protection against unauthorized access, errors during operation, and malicious actions of the user:

  • Information stored in the system's database is protected against unauthorized access by means of a commercial Oracle DBMS;
  • Upon connection to the system, the user should pass an obligatory authorization. Each user is provided with a certain set of the rights of access to data and functions according to his/her roles within the system;
  • The system enables the term of validity and rules of using a password for authorization to be established. After several unsuccessful attempts of connection, the user's account may be blocked and thereafter may only be unblocked by the system administrator;
  • The system monitors the ability of editing entity data depending on the state of this entity within the system;
  • LISA keeps a log of all the changes that occur in its basic entities. In the log, the date, time and essence of changes made, as well as the name of the user who has made these changes are obligatorily recorded. Log data are inaccessible for editing and deleting.

Reliability in Service

LISA ensures the stability in the event of technical problems and equipment failures (hardware or software failure, noise in communications links):

  • The system offers the opportunity to archive and dearchive data daily,
  • All the critical operations performed with system data are recorded with stating the essence and principal parameters, the date and time of their performance, as well as with identifying the operator who has performed the operation;
  • All the operations within the system are performed in a transaction mode, i.e., if, during the performance of an operation, failure occurs within the system, the data return automatically to those values and states which they had before the performance of the abortive operation.

Functionality Growth and Adaptation

In designing LISA, we took account of the possibility of changes in the normative and legal base; therefore, new functions and even new functional modules may added to the system where required. LISA is also compatible with other information systems (data import and export).

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