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Reale Mutua Assicurazioni Case study: Technology that enables business

The digitalization, together with insurance and economic scenarios of the last years, is leading insurers towards the renovation and evolution of their Policy Administration Systems.

1.1 Summary

Reale Mutua is the Italy's largest Insurance company organized as a mutual society.

Founded in 1828, Reale Mutua has almost two centuries of history behind it; a long journey undertaken with professionalism, reliability and innovation; characteristics that make Reale Mutua still today a point of reference in its market.

Reale Mutua Assicurazioni's mission is closely linked to its mutual nature: to always put the Members/Policyholders at the centre of its attention, ensuring them quality and secure performance through the constant commitment of competent and professional people.

The technological partnership with RGI Group goes back a long way; it started at a particularly sensitive time for the insurance company which, together with its agents, wanted to achieve a leap in quality by adopting a model of online operations and cooperation.

10 years on, RGI Group is still an integral part of Reale Mutua's success. The insurer's results speak for themselves: with over 1,200 employees and 340 agencies throughout Italy, Reale Mutua is also the head of a Group operating in Italy and Spain which employs around 3,000 people and protects more than three and a half million policyholders, having collected close to 3.5 billion Euros in 2012.

1.2 The scenario

Reale Mutua Assicurazioni chose RGI Group at a complex time in its history, during a difficult journey to migrate its information systems towards online operation and after adopting a strategy that was not achieving the expected results.

The insurer's initial goals were to tackle the subject of online operations actively, at a time when its value for the business was becoming strategic. Reale Mutua wanted to migrate towards a more cooperative and functional model to replace the traditional format of the managerial back office being separate from the agency front end.

Reale Mutua had the following goals:

  • To have a flexible platform which would be able to support the insurance company in its future developments, in both business and technological terms
  • To improve the Time-to-Market for the development and operation of new insurance products
  • To have a platform that was easy to learn for agency users
  • To have a system that would allow a change in pace for the insurance company, enabling it to take up position among the market leaders
  • To enable real time interaction between the managerial users and agency personnel;

At that time the PASS suite was beginning to make its mark on the market: both PASS_Products and PASS_Insurance were technological assets that were already operational and functional and which significantly set RGI Group apart from its competitors.

Moreover, the fact that the RGI Group was close in terms of geographical location was particularly important for Reale Mutua which, due to its mutual nature, is very sensitive to its environs.

The Reale Mutua Technical Department therefore decided to evaluate the PASS suite as an alternative or parallel solution to the existing one.

RGI's solution

Reale Mutua put its trust in PASS_Insurance based on a number of features that were distinctive and different from other solutions on the market, and particularly the following factors:

  • Solidity of both supplier and solution: RGI is a well-known brand and PASS suite has rapidly made its name as the market standard.
  • Single solution that can be shared between peripherals and the central operating base: PASS_Insurance is an online system which overcomes the traditional distinction between agency systems and managerial systems, avoiding the duplication of information, with the ensuing reduction of rework, discrepancies and costs.
  • Option of acting at management level without necessarily duplicating the development activities on different systems
  • Easy to learn for users
  • Fast execution of projects and operation of the solution;

Reale Mutua Assicurazioni opted for:

  • Agency Front-end – a component supporting the operations of the sales force (agents and subagents) in the sale and after-sale period (access to customer database, access to customer position, quotation and issuing of contracts etc.)
  • Agency Accounting – a component allowing management of the agency's collecting book and integration with general accounting
  • Management Accounting – a component allowing technical management accounting for all divisions, both Life and Non-Life (Damages and Car insurance)
  • Back-end for the Non-Life divisions – components for the management of back-office operations (renewals, replacement, appendices, management of exemptions, etc.) for the Non-Life Damages insurance portfolio.
  • PASS_Workflow Module: for the integrated management of contracts with the affinity group channels
  • PASS_Mobile Module: for the calculation of estimates for Damages insurance products on mobile devices such as tablets and smartphones
Results and Benefits

The main benefits from adopting the PASS suite are set out below:

  • Greater efficiency: the fact that the management of the insurance company and the peripheral networks can share a single application has eliminated the costs needed for the development and maintenance of another computer system. At the same time, inefficiencies in terms of human resources have been reduced drastically: doing away with some activities linked to asynchronous operations, such as checking to avoid discrepancies between systems and double input of data, has enabled users to spend more time on higher value-added activities. In this respect, the expected economic objectives were achieved in full, with a design and operational efficiency that can be quantified at around 20%.
  • Customer-centric approach: PASS_Products is a robust and extremely flexible rating engine which allows for the development of a number of products even of very different kinds. With PASS_Products, the range of products offered by Reale Mutua Assicurazioni has been enhanced in such a way that the insurance company has been increasingly able to satisfy its customers' requirements. The times needed to draw up the product and the IT delivery phase have been speeded up, with the ensuing capacity to create products that are more diversified and increasingly tailor-made.
  • Improved time to market: PASS_Products was also the enabling factor for the increase in products using a different, more efficient, more complete and more flexible process, which enabled the insurer to improve its time-to-market significantly in order to be even more proactive in satisfying its customers' new requirements. The time to market was the project's real differentiator, because it allowed the managerial users to make more genuine choices. Reale Mutua Assicurazioni also chose to improve the time to market even further with the evolution of PASS_Products to PASS_Products Easy, with which Reale Mutua's business users will be completely independent in designing their products, which will be more efficient and also faster to issue.
  • Flexibility of the system to business objectives: Reale Mutua Assicurazioni has been able to test the flexibility of PASS_Insurance in adapting to business requirements. In particular, the insurers had the objective of revolutionising the process of creating and issuing insurance products and the versatility of RGI Group's Policy Administration System enabled management to set the degree of flexibility of the application that was needed to reach the objectives it had set itself.
  • Positive user experience: The insurer wanted to adopt a "rigid" approach to ensure that the change of application was the opportunity for a change also of the business processes. In doing so, Reale Mutua experienced some initial resistance from users who did not immediately understand the company's willingness to evolve not only the computer systems but the entire process of creating and issuing policies in a more efficient way. Once the initial misunderstandings had been overcome, Reale Mutua's sales network accepted and appreciated the new application and still recognises today the potential of PASS_Compagnia, its reliability and the fact that it is a linear, fluid tool that is easy to learn. This aspect is particularly important for insurance agencies, which have particular personnel dynamics and a very high staff turnover: in this kind of context, having a self-explanatory application that is easy to use is a strong point which makes a difference since it makes training new agents easier.
  • Compliance with project timeframes: the project with Reale Mutua was a particularly complex one because it started at a very sensitive time for the insurance company, as much with regard to its management of the systems as for relations with its sales network, and it therefore had to be handled very carefully. The fact that the project went into production without delay, within the projected timeframes and with the direct involvement of its agents is one of the truly distinctive points of the partnership between RGI Group and Reale Mutua Assicurazioni.
Qualitative and quantitative benefits

The PASS suite has proved to be an essential enabling factor for the insurer's evolution towards "digital" sales and for the streamlining of processes that were previously handled through two different applications, with the ensuing errors and discrepancies between systems. By converging everything onto a single system, Reale Mutua was able to appreciate greater efficiency and a qualitatively greater level of satisfaction in the activities carried out.

The flexibility of PASS_Insurance, and especially of its core module PASS_Products, made even stronger with PASS_Products Easy, will enable managerial users to be more independent in defining the product. Moreover, the fact of being able to play a part in the definition of the rules at a single point upstream of the product definition process, rather than duplicating amendments on both the preceding tools, has sped up the entire process of creating and putting a policy online.

Furthermore, also from the point of view of administrative management, being able to count on the reliability of a single system offering the same information at both management and peripheral level, overcomes the "Achilles heel" that affects many insurers.