This authorized reprint contains material excerpted from a recent

Celent report profiling and evaluating 15 different North American

life insurance new business and underwriting systems. The full report
is 172 pages long. This report was not sponsored by EXL in any way.

This reprint was prepared specifically for EXL, but the analysis
presented has not been changed from that presented in the full
report. The full report description can be found at New Business and
Underwriting Systems: Global Life Insurance Edition. For more
information on the full report, please contact Celent at
info@celent.com.

NEW BUSINESS AND

UNDERWRITING SYSTEMS:
GLOBAL LIFE INSURANCE
EDITION
2022 SOLUTION SPECTRUM, POWERED BY VENDORMATCH

Karen Monks and Colleen Risk

November 30, 2022
CONTENTS

Executive Summary .............................................................................................................. 3

What is an Automated New Business and Underwriting System? ....................................... 4
Report Methodology ............................................................................................................ 9
Celent’s Technical Capability Matrix .................................................................................. 13
EXL: Life Digital Suite .......................................................................................................... 15
Path Forward ...................................................................................................................... 27
Leveraging Celent’s Expertise ............................................................................................. 29
Related Celent Research ..................................................................................................... 30
Copyright Notice ................................................................................................................. 31

© CELENT
 Executive Summary

EXECUTIVE SUMMARY

Data-driven, automated underwriting can have the largest impact on digital

transformation in life insurance. New business and underwriting systems profiled
in this report can help drive those benefits.

This report is the second in a 2022 series of Celent reports on new business and
automated underwriting (NBUW) systems. In this companion to the North American
market report, Celent profiles NBUW systems available to life insurers in three other
regions: EMEA, LATAM, and APAC. Celent believes this report is extremely timely as
insurers reevaluate their underwriting processes post COVID-19 pandemic.
COVID-19 and the underlying macroeconomic environment forced life insurers to
deeply examine their product offerings and business processes because low interest
rates and the industry’s reliance on fixed-income investments reduced profits.
Insurers also strived to meet the needs of consumers who were facing unexpected
health concerns, lower pensions, and the general anxiety brought on by the global
pandemic.
Even though the life industry has made some strong shifts in distribution, operating
models, and products, insurers need to transform more. One area of transformation
is the automation and digitization of the new business and underwriting processes to
lower operating costs and improve the customer experience. Insurers purchase
underwriting systems with the expectations that they will reduce unit costs and
improve margins, an especially important goal if a global recession emerges.
This report should help insurers as they refine their new business and underwriting
technology strategies and, when needed, create a list of appropriate vendors for
evaluation. Celent recommends also using VendorMatch to further your search and
understanding of these systems.
This report profiles 15 systems in use by or being marketed for new business and
underwriting functions in EMEA, LATAM, and APAC. For the purposes of this report,
Mexico and the Caribbean are considered LATAM.

© CELENT 3
 What is an Automated New Business and Underwriting System?

WHAT IS AN AUTOMATED NEW BUSINESS AND

UNDERWRITING SYSTEM?

Automated or electronic new business and underwriting systems allow life

insurers to automate the processing and underwriting of new insurance policies.
The systems combine evidence data such as laboratory reports, doctors’ records,
medical information bureau reports, medication and medical histories, motor
vehicle reports, and financial and personal backgrounds along with other
underwriting requirements—and help evaluate the information to assess the
appropriate rate class for an applicant.

The systems include underwriting rules, automated interfaces with underwriting

evidence providers and user interfaces for human underwriters, case managers, and,
in most systems, agents or brokers. Automated new business and underwriting
systems are an essential part of a life insurance company’s strategy to digitize their
new business and underwriting processes.
Predictive analytics-based and public data-based scoring systems have become more
prevalent and are being integrated into the underwriting rules engines. These tools
help identify patterns and use data points to connect information provided from
various sources to make risk-based evaluations. Artificial intelligence can help
identify these patterns accurately and almost instantaneously, providing
underwriters insights into which data points are relevant and which are not.
Additionally, underwriting AI allows insurers to assess applicants with the
appropriate level of risk management using only the questions that are needed to
assess that risk. This improves the customer experience by using a streamlined
application and external data to make quicker and more informed decisions.
New sources of external data such as electronic health records and lifestyle scores
are replacing the need for invasive testing such as collection of blood and urine.
Electronic evidence is available within minutes, provides data that can be assessed
by the underwriting rules engine, and decreases the time necessary to underwrite
most cases. Shorter underwriting timeframes improve the customer experience,
increase placement rates, and reduce underwriting costs.

Functionality
Today’s new business and underwriting systems can be defined as a four-stage
process:

© CELENT 4
 What is an Automated New Business and Underwriting System?

• Collecting data at the front end as structured data in or from an electronic

application that has been adapted for distribution channels and products and
from evidence providers such as MIB, MVR, and Rx.
• Triaging risk in new business and underwriting rules engines that identify
underwriting requirements, provide exceptions to predefined rules, and provide
an underwriting decision, decreasing the level of human underwriting
intervention.
• Fulfilling the various back office functions needed for processing, such as
evidence ordering, tracking and routing, correspondence, etc.
• Analyzing the resulting data for actuarial, underwriting, pricing, and marketing
purposes.
Figure 1 presents the basic functionality of a new business and automated
underwriting system. The systems profiled in this report differ in the degrees to
which they have this functionality.

Figure 1: Four Main Roles of a New Business and Underwriting System

• Quotes, illustrations and needs • Underwriting rules/business
analysis rules management
• eApplications • Requirements
Automated or electronic new business and
underwriting systems applications allow life • Producer portal for status management
insurers to automate the adjudication of new updates (internal and
insurance policies. The systems identify, external)
• Forms and correspon-
collect, and evaluate medical and nonmedical dence
evidence data to underwrite a policy Fulfill Manage
into the appropriate rate class
for an applicant.

Table Stakes
Analyze Use
Differentiators
• Underwriter
Optional workbench
• Case manager
• Management
workbench
reporting
• Workflow
• Data analytics

Source: Celent

Functionally, these systems deliver:

• Integration with e-applications on the front end and the relevant policy
administration systems on the back end to enable electronic receipt of
application data and ultimate issuance of policies.
• Real time ordering, receipt, and matching of underwriting requirements from
third party vendors with application data.
• Conversion of internal and third party data and information necessary for
underwriting, which is often in unstructured formats, into standardized data
formats. This process is often in conjunction with third party tools.
• Workflow functionality that manages the interaction between the producer,
electronic underwriter, human underwriter, and new business staff.

© CELENT 5
 What is an Automated New Business and Underwriting System?

• Analytical tools that assess process flows and underwriting results to predict and
test future underwriting rules and processes.
• Rule engine capability for the creation, maintenance, and effective execution of
underwriting and business rules.
• Testing capabilities to see immediate impact of rules changes.
• Communication with portals (internal and external) to provide case status.
• Automated audit capability to review cases based on criteria such as face
amount, impairment, or occupation.

Core Processes
• Automated Underwriting Engine/Business Rules Management: The repository
of underwriting and business rules. The rules evaluate the risk of the applicant
using data collected from the application, third party data providers and other
internal and external data sources as needed. Business rules management
functionality supports the design, management, and execution of business rules
attached to products, requirements, processes, and workflow.
• Underwriter Workbench: Provides an interface for users to manage new
business applications as cases progress through the underwriting process. The
focus of an underwriter workbench is on new business submissions, giving
underwriters the tools to evaluate, review, track, and make decisions on policy
applications.
• Case Management Workbench: Like an underwriter workbench, it enables
tracking of requirements and allocation of work to underwriters and other new
business personnel.
• Requirements Management: A specialized process that provides a case-level
view of underwriting requirements and the ability to order, receive, and process
requirements. Typically, this includes integration with many data sources, such
as MIB, paramedical providers, credit bureaus, and other sources; and
increasingly, integration with tele-underwriting systems or e-applications via
APIs.
• Workflow: The basic process management function that allows the creation of
functional paths for users to follow and route the work within the underwriting
process. This is not to be confused with more robust workflow or business
process management systems, which are typically third-party systems. Some
vendors provide visual tools for creating and editing system workflow, while
many others require writing custom code.
• Communication Management: The process through which the agents and
customers are advised of the status of a case via email or a transaction on an
agent or customer portal.

© CELENT 6
 What is an Automated New Business and Underwriting System?

Supporting Processes
• Agent Portal: Not all systems offer this functionality, but those that do include
agent-facing web functionality. This supporting process allows an agent to access
the case status of submitted applications. Although an agent portal is not a
necessary component within a new business and underwriting system, the
system’s ability to push data from the NBUW system to an insurance company
portal is important as it allows the case manager or underwriter to proactively
communicate with the agent to provide application status or follow up on
requirements. Agent portals often include eApplication functionality. Some also
include agent licensing, contracting, and appointment status.
• Electronic Applications: The primary vehicle to capture data about the applicant.
It usually includes validations that are configurable for multiple distribution
channels and products. They provide reflexive questioning capability. Electronic
data capture guarantees structured data and reduces errors. If electronic
applications are not provided at point of sale (POS), easy-to-use data entry
screens for back office staff are a must-have.
• Product Design and Rating: Product design and the ability to set some rating
rules and variables are often core processes in a policy administration system. An
underwriting system will add to the product rules and allow for specific
underwriting rules to be associated with certain products. Some systems require
custom code to make changes, while others provide visual or script-based
modeling tools for users. For some full-suite systems, a common rules engine
defines the product rules for the policy administration and new business and
underwriting systems.
• Quoting and Illustrations: When linked to a new business and underwriting
system, the producer may use the quotes and illustrations to prescreen
applicants for certain products before beginning the application process.

Commonly Integrated Solutions

Insurers will find that several solutions are commonly integrated with a new business
and underwriting system. These solutions are provided by vendors either bundled
with or in addition to their new business and underwriting offering.
• Data Mining and Reporting: A business intelligence and data warehousing
function which is typically external to a new business and underwriting system.
While many systems provide basic reporting functionality, most systems provide
a standard data feed to integrate with a third-party reporting, dashboarding, and
analytic databases. Some underwriting systems can use application data and
case experience to help in developing new underwriting rules (e.g., reinsurance
data).
• Forms and Correspondence: Document and content automation systems which
allow template-based generation of official policies, underwriting rejection
letters, email updates, amendments, endorsements, and any other
documentation that needs to be stored or sent.

© CELENT 7
 What is an Automated New Business and Underwriting System?

• Third Party Underwriting Rules Underwriting rules written by reinsurers can act
as the foundation for a vendor’s rules templates.
Not all systems provide each of these functions. And many of the systems reviewed
offer the various components individually. It is critical for an insurer to determine
their specific needs as part of their selection project.

© CELENT 8
 Report Methodology

REPORT METHODOLOGY

Within this report Celent is profiling most of the leading new business and
underwriting systems being used or actively sold to life insurers outside of North
America. Celent actively reviews vendor systems in the insurance software market
and invites the vendors to participate in reports like these.

Approach
To analyze the capabilities of all life insurance new business and underwriting
systems active in the life insurance market, we invited software vendors worldwide
to participate in Celent’s research. There was no cost for vendors to participate.
Celent asked vendors to complete a detailed RFI on Celent.com. In addition to the
online survey, some vendors provided a product briefing and solution
demonstration. The online survey sought information about key functionality,
preintegrated systems, customer base, pricing model, customer feedback, and
implementation and support. In some cases, vendors revised their RFI responses
following detailed discussions with Celent.
Celent used its unique VendorMatch platform to gather RFI data from each vendor.
VendorMatch is the world's largest vendor and solutions data store—combined with
analytical tools—to help financial institutions find, evaluate, and select a solution.
Each profile contains a link to the vendor's VendorMatch profile.
The RFI for this market research gathered information across multiple dimensions
including:
• Company information
• Product overview, key features and benefits
• Specific information about the vendor and the system including, among others:
– Functionality: Application, channel management, product rules
management, underwriting rules management, business rules management,
case management and workflow, requirements management, and reporting
and analytics
– Technology: Code, databases, operating systems supported, integration
methods and APIs, internal and external use interfaces, mobile capabilities,
and cloud and other deployment options
– Implementation and support: Staffing, training, client services, initial
installation

© CELENT 9
 Report Methodology

– Commercial terms: Pricing models, pricing factors, third party software fees
and other costs, service-level agreements
– Customer base: Customers by premium tier, installations by country,
marquee clients, in-production and supported lines of business including
group and voluntary life protection products, annuities, accident and health,
and savings and pension and customer references
As part of the VendorMatch RFI process, Celent gathered much more information
about each solution than is reflected in this report. Subscription clients can leverage
analyst access to connect with the author and to learn more about the vendors. They
can also use the VendorMatch platform to review a vendor’s online company and
product profiles. Since the online database can be updated at any time, the online
data may be more current than this report.

Customer Reference Feedback

Celent used an online survey tool to gather feedback from client references provided
by some of the vendors. The survey asked about client views of the solution's
business and technology value and assessed the vendor's customer service. The
survey also asked each client what it liked best about the vendor and solution they
use and asked for suggestions for improvement. Anonymous results of the client
surveys are reflected in the profiles, including a diagram that displays the average
ratings given to the vendor in six categories. It is advisable to keep in mind that the
evaluations and comments may vary according to the specific needs of each
reference client.

Table 1: Customer Feedback Ratings

Questions Asked Rating Included in the Average

Functionality Electronic applications (submission of application data)
How would you Automated identification and ordering of underwriting requirements
rate the features Workflow management of underwriting requirements (receipt,
and functions you tracking, follow-up, payment, etc.)
are currently
using? Underwriting case management tools (e.g., work flow, tracking)
Rule-based underwriting for less complex / low face amount cases
(e.g., simplified underwriting)
Rules-based capabilities to aid in complex underwriting
Automated integration with third party information sources
Underwriter desktop (e.g., electronic folder systems, underwriting
tools, etc.)
Ability to utilize predictive analytics-based underwriting
e-Signature
Document management
Management reporting and analytics

© CELENT 10
 Report Methodology

Questions Asked Rating Included in the Average

Technology Ease of system maintenance
How would you Flexibility of data model
rate the Scalability
technology of this
solution in the Continuous improvements in technical performance
following areas? Configurability of product and underwriting rules
Ease of integration with internal and external systems/data
Upgrades
Integration/APIs Illustration system (if from a different vendor)
What has been eApplication (if from a different vendor)
your experience Policy administration system (if from a different vendor)
integrating this
system with the Calculation engine (if from a different vendor)
following Billing system (if from a different vendor)
components? Commission system
Reinsurance system
Document management system
Imaging systems
External data sources (third party data providers, pharmacy
databases, payment processors, etc.)
Other internal applications not listed

How would you API Documentation

rate the following Support for local or global standards
API features API version management
offered as part of
the system? API access management
API usage tracking
Overall availability of APIs within the system
Implementation Responsiveness (handling of issue resolution)
Thinking back to Project management (estimations, scope creep, etc.)
when you first Implementation completed on time
implemented this
system, how Implementation completed on budget
would you rate Knowledge of your business
this vendor in the Product representation vs. delivered application
following areas? Overall project success
Support Timeliness of responses to service requests
How would you Quality of responses to service requests
rate this vendor's Costliness of service
ongoing post-
implementation Skill and knowledge of the vendor's staff
support in the Communication – proactive communication of issues and changes
following areas? Road map delivery
Source: Celent

© CELENT 11
 Report Methodology

About the Profiles

This report contains 15 profiles presented in alphabetical order.
Each profile presents information about the vendor and solution; available
professional services and support capabilities in the region; customer base;
functionality and lines of business deployed; technology and partnerships; and
implementations. A few solution profiles contain customer reference feedback.
All vendors had an opportunity to review their profiles for factual accuracy. Celent
has retained final authority over the content of the published profiles. Some of the
vendors profiled in this report are Celent clients, and some are not. No preference
was given to Celent clients either for inclusion in the report or for the subsequent
evaluation.

Limitations
Celent believes that this study provides valuable insights into current offerings in
new business and underwriting systems. However, readers are encouraged to
consider these results in the following context. Although we viewed a system
demonstration, we could not confirm all of the solution details and client base
information self-reported by participants. The initial data collection commenced in
September 2022, and the vendors have had the opportunity to update their profile
information since that initial outreach.

© CELENT 12
 Celent’s Technical Capability Matrix

CELENT’S TECHNICAL CAPABILITY MATRIX

Celent Technical Capability Matrix

New to Celent’s solution research this year is the Technical Capability Matrix. This
places each solution into a category based on the sophistication and breadth of its
technology (i.e., plotting the A and B dimensions). Solutions are not ranked within the
category we’ve assigned and are therefore listed alphabetically.
The five categories are:
• Luminary: Excels on both Advanced Technology and Breadth of Functionality.
• Technology Standout: Excels in Advanced Technology but doesn’t yet have as
many features as leading competitors (low on Breadth of Functionality). Often
newer, these solutions typically have chosen a focused set of functionalities to
begin their journey.
• Functionality Standout: High on Breadth of Functionality (likely big installed base
and experience in the market), lower on Advanced Technology. Often more
established, these solutions have built out a robust set of features with
technology that may no longer be cutting-edge.
• Noteworthy Solution: Relatively lower on both technology and functionality
dimensions, yet still worthy of consideration by some financial institutions.
• Developing Solution: Typically, new to the market and quite low on either
Advanced Technology or Breadth of Functionality. Has the potential to mature
into a more robust offering over time.

© CELENT 13
 Celent’s Technical Capability Matrix

Figure 2: Celent Technical Capability Matrix

Breadth of
Functionality

Functionality standouts Luminaries

Noteworthy solutions Technology Standouts

Developing solutions

Advanced
Technology

Source: Celent

© CELENT 14
 EXL: Life Digital Suite

EXL: LIFE DIGITAL SUITE

Company and Product Snapshot

EXL is a publicly traded company headquartered in New York, New York, with sales
and professional services personnel located throughout the globe. The company has
43,000+ employees, of which 110 are available to provide professional services /
client support for their Life Digital Suite solution.
The vendor states they have had no legal issues or bankruptcies.

Table 2: Company Snapshot

Year Founded 1999

Number of Employees 43,100
Revenues (USD) Not provided
Financial Structure Public company: EXLS (NASDAQ)
VendorMatch Link https://www.celent.com/vendormatch/discover
y/solutions/682706143
User Conferences The vendor offers an annual user conference or
customer event.
Source: Vendor RFI

Table 3: Product Snapshot

Name Life Digital Suite

Year Originally Released 2010
Current Release and Date of Release 2.3.0/2022
Revenue Derived from the Product Not disclosed
R&D Expense R&D expense over the past two
years has been 20% of total revenue
attributed to this solution.
FTEs Providing Professional Services for Product 110
Regional FTEs (NA/EMEA/APAC/LATAM) 30/20/60/0
Target Market Life and health insurers in North
American and EMEA with more than
$100M in AUM.
Installed Base 21 globally
Notable Clients None Provided
Source: Vendor RFI

© CELENT 15
 EXL: Life Digital Suite

Overview
The vendor states that:
EXL Life Digital Suite is a best-of-breed eApp and accelerated underwriting
platform. The suite includes eApp, underwriting rules engine, workflow,
analytics, and e-docs components.
Key features include:
EXL believes a combination of the following points makes LDS unique in both
the US and European markets.
• eApp is a rules-based logic engine that drives the automated workflow,
document management, and underwriting journey. No code
configuration—a simple-to-use Visio-style configuration tool drives all
workflow, underwriting questions, and rule sets.
• One-touch configuration within the design suite automates and tests
changes across the entire journey. An independent underwriting engine
removes ties with any one reinsurer. Full set of reflexive medical
underwriting questions available to bespoke to individual insurer
requirements.
• External data feeds to all internal and external sources of data. Full set of
reflexive database questions to score data-related information. Medical
and data questions deployed in real time to deliver a fully interactive
underwriting journey which consumes applicant and broker inputs,
external data from simple checks at the outset to complex interoperation
of APS, and other medical reporting.
• Expert independent underwriting support and consultancy to help
insurers optimize the digital underwriting process. Underwriting
questions displayed in a Visio-style format to make it simple to modify or
write new rules with real time sight of every underwriting journey
Underwriting workbench. Logic-driven rules engine drives full automation
across the underwriting engine.
• Easy-to-read and configure dashboard reduces underwriters time
managing new application. Dynamic visualization tool captures all data
points in the journey, including tagging every underwriting action with a
cost and time to give transparency of all transactions at a cost per
application, condition, distribution channels, etc.
• All data is captured and stored digitally, providing transparency and
consistency across all automated processes for use internally, with
regulators of clients. Continuous improvement cycle. The visualization
tool enables insurer to measure, in detail, key performance metrics.
• The no-code, one-touch configuration enables insurers to target, test,
and improve any area across the underwriting journey. Reading APS
reports: A tool within the underwriting workbench can extract the key
medical information through a combination of OCR and human

© CELENT 16
 EXL: Life Digital Suite

interaction to deliver a summary, hyperlinks, and full report within a 24-

hour turnaround.
Key benefits include:
The Life Digital Suite provides a best-in-class customer experience for fully
underwritten products: Consistent across agent and direct channels.
• Automated underwriting and policy issuance in minutes for favorable
risks. Accelerated underwriting and policy issuance in hours or a few days
for less favorable risks. Manages the accelerated underwriting process
with clear, analytics-based KPIs.
• Underwriting dashboard showing the flow and stage of applications.
Underwriting workbench to adjudicate low/high touch decisions.
• Analytics provides insights on process and customer journey
improvements to improve throughput and quality of portfolio.

Functionality
Table 4: Functionality

Category Function Availability

Desktop eApplication - web-based 
eApplication – mobile 
Dynamic interviewing (subsequent questions depend on
prior responses)

Ability to upload or import an industry-standard application
form to avoid data entry

Ability to provide data validation at the time when captured,
including correctness of the email address

Electronic signature capability 
Ability to integrate and prefill with data from external data
systems or services

Product Rules Product and rate rules maintained separately from

Management underwriting rule definition and management

Ability to integrate with reinsurer underwriting manual 

System supports a product dictionary/repository 
Ability to calculate premium based on underwriting class 
Rule validation during add/update based on local regulations
and regional restrictions

Testing, modeling, and product analysis tools 
Underwriting
Rules Ability to design and manage underwriting-specific rules 
Management
Complex rule processing via 3rd party rules engines 
Underwriter desktop 

© CELENT 17
 EXL: Life Digital Suite

Category Function Availability

Ability to monitor and audit underwriting rules changes by
date

Complex rule processing based on internal rules capabilities
for medically underwritten products including underwriting 
decision (no touch)
Ability to audit manually updated underwriting decisions 
Capability of underwriting multiple products and multiple
lives at the same time


Ability to overwrite system underwriting decision 

Ability to create algorithmic scores automatically from
selected data

Rule-based underwriting for less complex / low face amount
cases

Ability to manage underwriting rules in global, regional, and
local dimensions

Ability to manage authorization limits 
Ability to provide a "what-if" analysis on rules change. (e.g.,
impact applied to previous year)

Post Issue Ability to offer continuous underwriting using ongoing fitness

Underwriting tracker or other biometric data.

Case
Management / Correspondence tools between underwriter and producer 
Workflow
New business status system for agents 
Demand and capacity management capabilities: work
distribution based on skills and capacity availability, 
forecasting.
Case management correspondence capabilities including
expiry, follow up actions, dates

Ability to automate all communication to agents on
outstanding requirements via email

Ability to design and manage case management workflow-
specific rules

Requirements Ordering of underwriting requirements - medical (from within

Management the system)

Ability to monitor and audit requirement rules changes by

date

Ordering of underwriting requirements - non-medical 
Identification of underwriting requirements - medical 
Internal underwriting requirements mgmt 
Ability to access forms and evidence from within the NBUW
system


Ability to design and manage requirements-specific rules 

Identification of underwriting requirements - non-medical 
3rd party data management (e.g., receipt, tracking and
follow up)


© CELENT 18
 EXL: Life Digital Suite

Category Function Availability

Reporting and Predictive analytics

Analytics
Ability to create customized reports and run analytics on
captured data


 = Available out of the box  = Configurable through a scripting  = Under development/on

language/coding roadmap
 = Configurable using simple tools  = Available with integration to a  = Could develop, would be
for business user third-party solution considered customization

 = Configurable using simple tools  = Available with integration to a  = Not available /not applicable
for IT user separate module provided by this
vendor

Source: Vendor RFI

Lines of Business Supported

Table 5: Lines of Business Supported

Line of Business NA EMEA APAC LATAM

Term Life    
Whole Life    
Variable Life    
Universal Life    
Variable Universal Life    
Indexed Universal Life    
Unit Linked    
Senior or Pre-need / Final Expense    
Fixed Annuity    
Variable Annuity    
Indexed Annuities    
Enhanced/Impaired Annuities    
Short-Term Care    
Accidental Death or Dismemberment    
Critical Illness    
Long-Term Disability (LTD)    
Short-Term Disability (STD)    
Long-Term Care (LTC)    
Income Protection    
Dental    
Vision    
Supplemental Health/Hospital
   
Indemnity/Major Medical

© CELENT 19
 EXL: Life Digital Suite

Line of Business NA EMEA APAC LATAM

Credit    
Pension (Defined Contribution)    
Pension (Defined Benefit)    
Wrap    
Savings (Bonds, Mutual Funds, etc.)    
Drawdown    
Legend: = In production;  = Supported but not in production;  = Not supported
Source: Vendor RFI

Customer Base
Figure 3: Client Base by Size, Deployment Type, Geography, and Momentum
(Global)

Tier Distribution Deployment Type Distribution

Tier 1 3 On-premise at
Public the customer
Tier 2 3 37%
cloud
Tier 3 2 32%

Tier 4 4

Tier 5 5

Agents/Brokers

Self-insureds of any size

TPA/BPO service… 4

Reinsurance Companies
On-premise at the
MGAs vendor/software provider
31%

© CELENT 20
 EXL: Life Digital Suite

Geographic Distribution New Client Momentum, 2 Years

100%
Tier 1

Tier 2 2
75% Tier 3 3
59% Tier 4 4

50% Tier 5 2
41%
Agents/Brokers

Self-insureds of any size

25%
TPA/BPO service providers

Reinsurance Companies
0% 0%
0% MGAs
NA EMEA APAC LATAM

Source: Vendor RFI

Customer Feedback
Four global clients provided feedback on EXL. Most clients have had the system for
less than one year.
Favorable comments included:
“Easy to implement UW rules/user friendly. Responsiveness to our needs, especially
when in a time crunch.”
“Fully configurable, without black box features that would require the vendor’s
involvement.”
“Ability to use concurrently multiple rulebooks for complex applications that involve
applying for more than one product at a time, even when these products are
reinsured with different reinsurers and guidelines.”
“The team’s understanding of our requirements and the business. The willingness to
work to a solution.”
In terms of improvements needed, one client suggested making the reporting and
workflow features more user-friendly for business users, resulting in a lower need to
involve IT staff. Another client stated that the original development was very difficult
for many reasons; however, since going live, they have a much better working
relationship and moved to an agile way of working with a dedicated team, which
works really well.

© CELENT 21
 EXL: Life Digital Suite

Figure 4: Client Feedback, customer average rating: 1=very poor; 5=excellent

Functionality
5

3
Support 2
Technology

Implementation Integration/APIs

Source: Celent 2022 Life Insurance New Business and Underwriting Customer Feedback Survey

Technology
Table 6: Technology Options for the Solution

Technology Options Responses

Code Base Java: 95%; JavaScript: 5%
Database DB2, Oracle, and SQL
Scalability Vendor’s largest deployment: 2,500 users. Largest
client implementation is over 300 concurrent users
with more than 500,000 policies
Scalability metrics: Not provided
Integration Methods Web services; XML, not through web services; HTTP;
RESTful HTTP-style services; JSON format; custom
APIs; and flat files
Source: Vendor RFI

Table 7: SaaS Capabilities

Elements Response
Supports a multi-tenant architecture No
Type of effort required to update the solution Automated scripts - fully
automated
Cadence of upgrades for multi-tenant deployments N/A
Deployment approach supports elasticity Yes, within less than a day

© CELENT 22
 EXL: Life Digital Suite

Elements Response
Current API-related strategy Pre-connected cloud
environment (fully
connected and ready to
use)
Deployment model can leverage a serverless approach No
Solution enables independent services (microservices) Yes
Proportion of the system architected as microservices Under 25%
Supports automation of development and deployment
Yes
processes (DevOps)
Solution runs and deploys under containers to improve the
Yes
application deployment
Need for containerization to run in a cloud Yes
System’s functions and capabilities can be distributed
Yes
among a private cloud and a public cloud
Source: Vendor RFI

Table 8: Deployment Options and Public Cloud Provider Support

Public Cloud Providers Availability # Clients Globally

Microsoft Azure  1
Amazon AWS  5
Google Cloud Platform (GCP) 
Alibaba Cloud 
IBM Cloud / Bluemix 
Oracle Cloud 
Salesforce Cloud, Force.com,

AppExchange
Other 
Legend: = In production;  = Supported but not in production;  = Not supported
Source: Vendor RFI

Configuration
Table 9: Change Tooling and Upgrades

Types of Changes Availability

Business Rule Definition 
Data Definition 
Table Maintenance, List of Values, etc. 
Interface Definition 
Product Definition 

© CELENT 23
 EXL: Life Digital Suite

Types of Changes Availability

Role-Based Security, Access Control, and Authorizations 
Screen Definition 
Legend: = Configurable via tools for business users;  = Configurable via tools for IT users;  = Configurable via
the vendor;  = Configurable via scripting;  = Coding required;  = Not available
Source: Vendor RFI

Data
The data model is proprietary and does not conform to any recognized standard;
however, the entities and attributes are generic and logical, and the vendor believes
them to be fairly intuitive and representative of common data model approaches
used within the industry. Clients are able to implement their data model using LDS’s
configuration abilities. Additionally, the plugin architecture can be utilized where the
data model cannot be fully represented in configuration. The data model can be
released to the client, can be easily published to a client’s data model, and can map
to an intermediate format to share with a client (such as an industry standard).
The database was designed from the ground up for this product. Due to the highly
configurable data model, the database data model is very generic, and changes are,
therefore, infrequent. Any database data model changes are fully documented in the
release notes and proactively communicated by the product-owner to clients. Where
necessary, changes are accompanied by an upgrade utility (only required once in the
10 years of use).

Security
EXL complies to the following security standards: OAuth2 (when this mode is
activated in the platform).
The vendor is PCI compliant. Service credentials can be entered within the LDS
platform and will be encrypted using AES. EXL would ensure transport layer security
was enforced. The application also offers a “transient data” capability which ensures
that captured data can be used for temporary processing but is never stored. The
application also allows individual data fields to be flagged as “secure,” which will
apply AES encryption on the data so that fields are encrypted at rest and in transit.
Flexible user permissioning, security tokens / pins, biometric security support, multi-
factor authentication, and federated identity support are available as authentication
factors for internal and external users.
For cyber security arrangements, EXL engages with an external third party for an
annual security scan that covers OWASP top ten plus gray and white box testing
scenarios. They also perform server security scans on a similar frequency. OWASP
third party library security checks are built into the CICD automation pipeline.
Sonarqube is also used for static code analysis and can identify insecure coding
practices. Regular scans are done by EXL’s application security team using
HP/Microfocus Fortify.

© CELENT 24
 EXL: Life Digital Suite

EXL recommends end customers commission an external security assessment of their

solution including the LDS platform. The vendor will warrant to resolve any issues
found with the software.
The system has penetration security by the latest version of open-source frameworks
giving protection against injection attacks (escaped user input), max file upload sizes
and attachment types, and session-hijacking.
LDS has robust authentication and authorization using OAuth2 security standards,
integration with enterprise IDMs, cross-site request forgery protection, and
encryption and hashing of data. Request-based auditing tracks application use and
can be used to detect improper system use.
The LDS API-Gateway provides TLS(SSL) and perimeter security. The application is
100% delivered via browser, and benefit from all the security features of modern
browsers. EXL can provide support to clients and infrastructure partners to secure
the application within the implementation environment.

Partnerships
Table 10: Implementation and Support

Type of Partnership Partner Vendor

System Integrators Globant
Fintech Partners TAPP Solutions
Source: Vendor RFI

Implementation, Support, and Pricing

Table 11: Implementation, Support, and Pricing

Typical Implementation 6 to 10
Team Size
Resource Breakdown Vendor: 80%; Insurer: 15%; Third party: 5%
Location of Employees EXL has 10 employees in North America, 10 in EMEA, and 20
in APAC.
Average Time to Initial implementation: 4 to 6 months
Implementation 2nd and subsequent line of business: 1 to 3 months
2nd and subsequent states/jurisdictions: 1 to 2 weeks
Pricing Models Perpetual license, term license, enterprise license, and
subscription-based license
Factors Used to Determine Usage-based factors: Per functional components/modules
Pricing used, number of products, integrations
Tier-based factors: Application/policy volume
Other factors: Hosting if EXL is providing this solution in a
SAAS model

© CELENT 25
 EXL: Life Digital Suite

Source: Vendor RFI

Pricing
The following table shows the average total costs of the vendor’s current client base.
This includes costs associated with the software license or subscription, initial
installation, customization, annual maintenance, and training in the first year. It also
estimates the remaining costs for full implementation, including license fees,
maintenance, customization, and other fees.

Table 12: Five-Year Pricing Estimates for North America/Global

Average Total Costs

(USD) Licensing/Subscription Implementation All Other

Average Year One Costs $200,001 to $800,000 $500,001 to $1 N/A

million

Average Remaining $45,000 to $180,000 N/A N/A

Costs (Year Two and Annual Maintenance
Beyond)
Source: Vendor RFI

© CELENT 26
 Path Forward

PATH FORWARD

As insurers continue to digitize their operations, it is not surprising that the

underwriting process will be one of the major transformations they will
undertake. Understanding the automated underwriting solutions available from
vendors is very important. Insurers have choices in the market. The systems
presented in this report allow for an insurer to rely on a reinsurer for
underwriting rules, build their own system in a vended solution, or use a hybrid of
the two. We believe these vendors offer the options that insurers need to
transform their underwriting processes.

The market for new business and underwriting systems remains strong in North
America. Today’s NBUW system can perform many repetitive risk scoring activities
for simple cases with minimal human support. This is beneficial for the many insurers
who focused on digitizing their new business and underwriting processes to meet the
needs of policyholders during the COVID-19 pandemic. The NBUW systems can help
bring forth more “fluidless” underwriting and a better experience for the applicant.
While there are risks associated with a more streamlined, standardized, digitized
underwriting process—such as mortality experience due to less evidence being used,
and persistency issues or lack of growth if competitor’s processes are also
improved—not transforming the process is a bigger risk in Celent’s opinion. The
market is moving forward with simplified products underwritten via automated
solutions. On top of keeping competitive, Celent’s research has shown that, once the
system is implemented, insurers can expect reductions in key metrics like cost per
per policy issued, cycle time, and case manager / underwriter productivity.

For Insurers
There is no single best new business and underwriting system for all insurers. There
are several good choices for insurers with almost any set of requirements. An insurer
seeking an automated underwriting system should begin the process by looking
inward and outward. Every insurer has its own unique mix of products, existing
channels, and desires for the underwriting process, staff capabilities, business
objectives, and financial resources. This unique combination of factors, along with
the organization’s risk appetite, will influence the list of vendors meriting
consideration.
Some vendors are a better fit for an insurance company with a large IT group that is
deeply proficient with the most modern platforms and tools. Other vendors are a

© CELENT 27
 Path Forward

better fit for a company that has a small IT group and wants a vendor to take a
leading role in maintaining and supporting its applications.
We recommend that insurers looking for a new business and underwriting system
narrow their choices by focusing on four areas:
• The art of the possible: What can be done with advanced tools? Look at whether
functionalities that the business needs are available out of the box for the lines of
business and states desired. Check to see what is actually in production.
• The technology: Both the overall architecture and the configuration tools and
environment. Perform proof-of-concept exercises with shortlisted vendors. This is a
chance for providers to show what they can do.
• The vendor’s stability, knowledge, and investment in the solution: Consider the
partnership dimension carefully. Key functional gaps are quickly closed by leading
vendors.
• Implementation and support capabilities and experience: The relationship between an
insurer and its underwriting system vendor will likely last years. Celent can help with
selection projects; we know the vendors and the markets well.

For Vendors
As a group, new business and underwriting systems are expanding their capabilities
rapidly through significant investments. The solutions are delivering a great deal of
customer acquisition functionality with improved configuration tools. They’re also
more connected, with APIs and RESTful web services becoming the de facto
standard. Although these trends are all excellent news for insurers, they make the
competitive challenges facing vendors that much more daunting.
Celent recommends vendors differentiate themselves by:
• Focusing on improving usability for both new and experienced users and managers.
• Continuing to build out configuration environments to put change controls in the hands
of the insurers. Configuration tools that business analysts can use get high scores from
insurers assessing these solutions.
• Making implementation faster and less expensive.
• Continuing to expand functionality—especially in different lines of business and in the
use of AI and analytics capabilities.
• Investing in embedding cloud-native capabilities into the product.

Was this report useful to you? Please send any comments, questions, or suggestions
for upcoming research topics to info@celent.com

© CELENT 28
 Leveraging Celent’s Expertise

LEVERAGING CELENT’S EXPERTISE

If you found this report valuable, you might consider engaging with Celent for
custom analysis and research. Our collective experience and the knowledge we
gained while working on this report can help you streamline the creation,
refinement, or execution of your strategies.

Support for Financial Institutions

Typical projects we support include:
Vendor short listing and selection. We perform discovery specific to you and your
business to better understand your unique needs. We then create and administer a
custom RFI to selected vendors to assist you in making rapid and accurate vendor
choices.
Business practice evaluations. We spend time evaluating your business processes
and requirements. Based on our knowledge of the market, we identify potential
process or technology constraints and provide clear insights that will help you
implement industry best practices.
IT and business strategy creation. We collect perspectives from your executive
team, your front line business and IT staff, and your customers. We then analyze
your current position, institutional capabilities, and technology against your goals.
If necessary, we help you reformulate your technology and business plans to address
short-term and long-term needs.

Support for Vendors

We provide services that help you refine your product and service offerings.
Examples include:
Product and service strategy evaluation. We help you assess your market position in
terms of functionality, technology, and services. Our strategy workshops will help
you target the right customers and map your offerings to their needs.
Market messaging and collateral review. Based on our extensive experience with
your potential clients, we assess your marketing and sales materials—including your
website and any collateral.

© CELENT 29
 Related Celent Research

RELATED CELENT RESEARCH

Technology Trends Previsory Webinar: Life Insurance, 2023 Edition

November 2022
Business Data Strategy: Underwriting and Actuary Case Studies
August 2022
Taiwan Life: External Open Health Data for Digital Accelerated Underwriting
March 2022
CIO Business and IT Priorities — Global Comparison of the 2022 Celent Insurance CIO
Survey
September 2022
Insurance CIO Business and IT Priorities in Japan
April 2022
Insurance in Asia-Pacific: 2022 Business and IT Priorities
March 2022
IT Priorities in Latin America for Life and Health Insurance
February 2022
2022 Business and IT Priorities in EMEA: Life & Health Edition
February 2022
Do You Have Intelligence in Your Processing?
October 2021
New Business and Underwriting Systems: Global Life Insurance Edition
October 2021

© CELENT 30
COPYRIGHT NOTICE
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