Oracle Modern Best Practice

Digital Business Processes for Insurance

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What is Oracle Modern Best Practice?
www.oracle.com/modernbestpractice

Digital business processes that End-to-end across the

evolve with you organization

Leverages emerging
Radically superior results
technologies

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Oracle Modern Best Practice books

The original book on Oracle Modern A new book with our vision for
Best Practice is now in it’s 3rd edition is processes in the future is available at
available at https://go.oracle.com/LP=88688
https://go.oracle.com/LP=88653

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Oracle Modern Best Practice
Designed for change – evolves with you

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Modern Best Practice for insurance

Finance Procurement
§ Budget to Approval § Supplier Registration to
Supplier Performance
§ Capital Asset Acquisition to
Retirement § Insight to Smart Sourcing
§ Bank Transaction to Cash § Requisition to Receipt
Position
§ Supplier Invoice to Payment
§ Expense Report to
Reimbursement § Supplier Return to Settlement
§ Insured Invoice to Receipt
§ Insured Statement to Collection
§ Daily Close to Financial
Forecast

§ Period Close to Statutory

Reports

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 Modern Best Practice for Insurance –
Finance

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Oracle Modern Best Practice
Budget to approval
Insurance

Define budget Maintain budgets Monitor and

> > > >
Generate allocations
strategy Allocate budgets across Securely collaborate consolidate
Define and link budgets organization (e.g. branches, across organization on Monitor budget participant
for income (e.g. policy brokerages, departments) budgets and key plan progress and approval
premiums, commissions, assumptions such as the status including areas
investment returns) and level of premium needed such as underwriters,
outgoings (claims, to achieve at what finance, HR, claims, sales,
settlements, commissions, expense, commission, and actuarial, risk engineering,
operating expenses etc.) loss ratios to deliver the etc.
performing what-if net profit number
scenarios as needed

Approve budgets
Approve final budget and
communicate
> Predictive forecasting
and monitoring
Automatic review of budgets
status and scenario analysis

Product Mix: EPM Cloud (Planning, Enterprise Data Management)

Popular KPIs: time to produce/approve/consolidate budget, %
variance
Cloud Mobile Analytics Social
Oracle Modern Best Practice
Capital asset acquisition to retirement
Insurance

Acquire capital Recognize and Assign amortization De-recognition and

assets
Recording of all capital
asset acquisitions at all
> register
branches and brokerages
via purchases, projects,
contracts. Secure
interaction via social
network on open issues,
questions and approvals
Automated recognition of
assets on purchase.
> Automated calculation of
Dashboard driven placement
into service, useful life
definition and tax valuation
depreciation and rules –
based assignment to cost
> disposal
Manage valuations,
disposals, de-recognition
>
center(s) etc. and retirements in
Automatically track compliance with Statutory
depreciation tax breaks Accounting Principles
and deferrals

Manage capital
asset insights
Active management of
capital assets via secure
role-based dashboard
allowing centralized
monitoring, alerts,
reassignment and period
close for all branches

Product Mix: ERP Cloud (Financials, Procurement, Project

Management)
Popular KPIs: Fixed Asset Turn Over Ratio, % fixed asset loss
Cloud Mobile Analytics Social
Oracle Modern Best Practice
Bank transaction to cash position
Insurance

Review activities Initiate interbank Manage end of

> > >
Bank validation
Review automated Daily interfaces with banks activities period positions
aggregation of featuring automatic Execute global cash Automated month end
disbursements (e.g. comparison of records, management. Optimize statement reconciliation.
claims, dividends), payroll, automatic adjustment of fees balances across accounts Balance sheet
collections, investments and minor differences. Align using zero balance optimization with
and borrowing and view daily balances schemes, etc. Real-time automatic updates to
highlighted differences review of bank positions forecasts and plans
and variances to plan via
secure role-based
dashboard

Product Mix: ERP Cloud (Financials)

Popular KPIs: time to reconcile, no. of reconciliations
Cloud Mobile Analytics Social
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Oracle Modern Best Practice
Expense report to reimbursement
Insurance

Define expense Process expense Process credit card Manage cash

policies
Configure corporate
expense policies,
> reports
Self-service submission of
expense reports (from
> feeds
Secure and automated
availability of credit card
> advances
Self-service submission of
and processing of cash
>
templates, approval rules executives, assessors, loss transactions for expense advance requests. Actively
and audit processes. adjustors, etc.). Snap receipts, reporting enabling timely monitor and follow-up on
Maintain the terms and claim forms etc. Use voice, approval of reports and overdue cash advance
conditions to be accepted leverage calendar events to payments balances with automated
before expense report create expense reports. Get notifications
submission answers on status, policies etc.
from digital assistant

Manage employee
travel
Integration with
> Analyze and audit
Leverage audit policies,
lists and selection criteria
GETTHERE enables direct to automate expense
access to travel booking report audit processes in
sites, rules-based accordance with business
reservations, automated policy and statutory
itinerary downloads and reporting
automated creation of
expense reports

Product Mix: ERP Cloud (Financials)

Popular KPIs: expense vs. budget, expense as % of revenue,
payment cycle time
Cloud Mobile Analytics Social AI/ML
Oracle Modern Best Practice
Insured invoice to receipt
Insurance

Create and manage Address billing Process payments

> >
transactions
Automatically generate
insured policy invoices
based on business rules.
Review status via role-
based dashboards
Send invoices
Send insured policy invoices
or consolidated policy
packets via preferred format
and delivery method (mail,
email, or e-commerce
message)
> >
issues Automatically match
Manage insured disputes receipts to invoices even
and billing issues with without remittance advice
role-based dashboard. using configurable rules or
Collaborate on audits via scoring engine. Handle
secure social platform. exceptions with help from
Apply corrections (credit recommendation
or debit memos) and algorithm
refunds after required
audit and approval

Manage
adjustments
Close receipts and
> Post receivables
activities
Automatically post all
> Schedule
receivables close
Stay on predetermined
invoices with remaining approved receivables close schedule. Use
integrated inquiry,
balances based on activities to the general
reporting, and analysis
company policy and ledger to ensure current tools to review and
approval limits account balances reconcile account
balances. Post period
close entries and close
receivables period

Product Mix: ERP Cloud (Financials)

Popular KPIs: avg. invoice age, DSO, % disputed invoices
Cloud Mobile Analytics Social
Oracle Modern Best Practice
Insured statement to collection
Insurance

Generate insured Manage collection Manage settlement

> >
Apply collection
statements strategies
Send insured policy Flag and score delinquencies
invoices or consolidated automatically based on factors
policy packets via
such as premium, aging, %
preferred format and outstanding, and credit limit.
delivery method (mail,
Assign course of actions such
email, app notification or
as friendly reminder, staged
e-commerce message) dunning, and phone calls to
suit business needs and
policies in line with statutory
requirements if applicable
> >
activities Initiate disputes on behalf
Gain complete visibility to of insured for review and
transactions, approval within and across
correspondence, departments. Receive
payments, disputes and payments at delinquency
adjustments via role- or case level
based dashboards.
Organize related
delinquencies with case
folder and record insured
interactions at insured,

>
delinquency, or case level
Optimize collection Monitor
efficiency outstanding
Manage collection team receivables
assignment based on Leverage advanced
performance metrics and analytics to monitor key
KPIs. Automatically assign metrics such as DSO,
new insured delinquencies Promises, Collection
to agents Effectivity, over multiple
dimensions and
hierarchies such as time,
location, and insured

Product Mix: ERP Cloud (Financials)

Popular KPIs: no. of delinquent accounts, time to settlement, time
to manage
Cloud Mobile Analytics Social Big Data
Oracle Modern Best Practice
Daily close to financial forecast
Insurance

Post subledger Convert to Review daily

> >
Identify anomalies
activity Dashboard-driven
Automatically post all processing of alerts and
approved subledger notifications anomalous
activity to the general transactions. Use of secure
ledger to ensure current social interaction for further
account balances research and review
> >
corporate standard activity
Automatically revalue, Secure real-time review,
translate, and convert analysis and interaction on
subsidiary balances to the day’s financial
corporate currency and activities and progress via
chart of accounts any device

Set financial
forecasts
Modify and securely share
forecasts and financial
plans in light of the posted
activity from the day

Product Mix: ERP Cloud (Financials), EPM Cloud (Planning)

Popular KPIs: time to reconcile, no. of reconciliations
Cloud Mobile Analytics Social
Oracle Modern Best Practice
Period close to statutory reports
Insurance

Close subledgers Reconcile accounts Close ledgers

> >
Pro-forma close ledgers
Monitor enterprise-wide Prepare and review preliminary
close status. Interact on statutory statements such as
and finalize outstanding balance sheet , income
sub-ledger transactions statement, cash flow statement,
and exceptions premium schedules, statements
and claims, losses and
expenses. Prioritize outstanding
transactions based on initial
results
> >
Reconcile sub-ledgers Route close tasks to task
to general ledger, owners automatically.
automatically matching Collaborate to streamline
transactions to entries the close for each entity.
Monitor enterprise-wide
close status.

Consolidate
subsidiaries
Transform each
> Review and confirm
financial and
management
> Publish and
securely share
financial statements
> Update financial
forecasts
Modify forecasts and
subsidiary’s results to the reports Distribute statutory financial plans in light of
corporate chart of Review consolidated statements to state the results from the just-
accounts. Revalue non- results –using the same insurance agency and all closed period
monetary balances and reports as each subsidiary internal interested parties
translate to the corporate where applicable – and leveraging collaboration to
currency. Eliminate enter final adjustments incorporate feedback
intercompany activity and
minority interest

Product Mix: ERP Cloud (Financials), EPM Cloud (Account

Reconciliation, Financial Consolidation and Close, Narrative
>Reporting)
Popular KPIs: time to close books, time to publish reports
Cloud Mobile Analytics Social
 Modern Best Practice for Insurance –
Procurement

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Oracle Modern Best Practice
Supplier registration to supplier performance
Insurance

Register supplier Ensure profile Begin collaboration

> > > >
Manage enablement
Send prospective suppliers Delegate user account accuracy Suppliers share
secured links to collect administration to supplier. Send reminder for information on social tool,
company data and Offer browser-based, self- certification renewal (e.g., participate sourcing
provided goods/services guided training and help Small Business, Women events, advise changes on
in structured format. owned.) Update data to quantities and shipments,
Approve/ reject reflect merger and and manage invoices and
registration after internal acquisition. Maintain audit payments, all on a secure
review trail portal

Manage supplier
qualifications
Send qualification
> Monitor performance
Analyze supplier performance
with a factual data driven review
questionnaire to identified per branch, brokerage,
suppliers. Review/ department or enterprise
clarify/evaluate responses. Distribute more spend to high
Automatically add ranking suppliers. Leverage
qualifications to supplier machine learning to evaluate
profile supplier risk profile using
transaction history, validated
business data, and real-time
signals including news and
press releases
Product Mix: ERP Cloud (Procurement)
Popular KPIs: avg. person-hour to qualify a supplier, no. of
suppliers per category or critical item
Cloud Mobile Analytics Social AI/ML
Oracle Modern Best Practice
Insight to smart sourcing
Insurance

Identify opportunity Develop Manage negotiation

> >
Initiate sourcing
Focus on high impact event
opportunities by analyzing Create policy-compliant
spending patterns (e.g. online negotiation through
branch, brokerage,
step-by-step guidance and
department, etc.) and templates
supplier performance
> >
specifications Publish requirements
Align specs with business /requests for proposals
needs by collaborating per enterprise, branch,
with experts and brokerage, department,
stakeholders. Determine etc. Begin participation.
most likely suppliers per Suppliers submit
branch, brokerage, responses via online tools
department, etc. and collaboration

Monitor response
Review and compare
submissions. Extend/
> Analyze and award
negotiations
Award business based on
> Finalize contract
Streamline contract
creation by applying terms
> Ensure utilization
Realize contract savings by
applying pricing and terms
pause proposal gathering fact-based data driven and conditions from to covered purchases
based on responses analysis and collaborative negotiation event and automatically
and/or response rates review exception-based
approvals

Product Mix: ERP Cloud (Procurement)

Popular KPIs: Non-contract purchase rate, price savings amount
Cloud Mobile Analytics Social
Oracle Modern Best Practice
Requisition to receipt
Insurance

Raise requisitions Create purchase Approve purchase

> > > >
Approve requisitions
Create purchase Route approval automatically orders orders (optional)
automatically or easily based on defined capital Automate purchase order Route approval
locate intended goods and limits, approval hierarchies, creation for approved automatically according to
services (e.g. furniture, and purchasing categories supplier based on predefined business rules
phone system, supplies, negotiated pricing and
computers, 3rd party contract terms freeing
assessor services, actuarial talent to focus on strategic
services, adjuster services, -initiatives
etc.) from approved
catalogs via consumer like
UI
Dispatch purchase
orders
Automatically deliver
> Receive goods and
services
Record goods received or
approved purchase approve invoices for services
orders/ electronic rendered to trigger automated
payment via secure matching in Payables
electronic channels or
supplier portal

Product Mix: ERP Cloud (Procurement)

Popular KPIs: processing cost per purchase order, procurement
cycle time
Cloud Mobile Analytics Social
Oracle Modern Best Practice
Supplier invoice to payment
Insurance

Manage supplier Manage audits, Manage Settle liabilities

invoices
Process electronically or
scan invoices with rules-
> disputes,
and approvals
Manage rules-driven
> prepayments
driven routing to automate approvals across any device
invoice processing. Use or desktop. Resolve disputes
spreadsheets to speed up and holds via a role-based
manual entry dashboard and secure social
interaction
and discounts
Optimize payment timing
> Actively monitor and
process supplier and
statutory liabilities via
>
and discounts based on secure interaction. Process
business goals and electronic payments,
supplier intelligence from automated pay runs, or
transaction history and off-cycle payments
real-time events. Manage
prepayments across
multiple devices

Review daily
activity
Review and analyze the
> Schedule payables
close
Stay on predetermined
day’s financial activity and close schedule. Review
monthly progress. payables register, trial
Continual supplier factual balance, and reconciliation
data driven review per reports per branch,
branch, brokerage, brokerage, department or
department or enterprise enterprise. Close payables
period

Product Mix: ERP Cloud (Financials)

Popular KPI: no. of payments, invoice payment days, % discount
taken
Cloud Mobile Analytics Social AI/ML
Oracle Modern Best Practice
Supplier return to settlement
Insurance

Request RMA Prepare material for Load material Ship material

Contact supplier to
authorize return. Enter
return shipment and
> shipment
Consolidate and pack
material to be returned for
> Load the prepared
material to a central
shipping area per branch,
> Ship material to be
returned and notify
supplier electronically
>
record RMA information credit brokerage, department or
enterprise for shipment

Receive material –
supplier (optional)
Receive replacement
> Record returns
transactions
Settle outstanding balance
materials from suppliers to with supplier. Enter
inventory or specified necessary payables
location and/or receivables records
per the details of the
return. Record returns for
supplier performance
analysis

Product Mix: ERP Cloud (Procurement)

Popular KPIs: return amount, no of return transactions
Cloud Mobile Analytics Social Internet
of Things