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Everest Group PEAK MatrixTM for Property and CasualtyInsurance BPO Service ProvidersFocus on CognizantApril 2017Copyright 2017 Everest Global, Inc.This document has been licensed for exclusive use and distribution by CognizantEGR-2017-11-E-2131
Introduction and scopeEverest Group recently released its report titled “Property and Casualty Insurance BPO – Service ProviderLandscape with PEAK MatrixTM Assessment 2017”. This report analyzes the changing dynamics of the P&Cinsurance BPO landscape and assesses service providers across several key dimensions.As a part of this report, Everest Group updated its classification of 18 service providers on the Everest GroupPerformance Experience Ability Knowledge (PEAK) Matrix for Property and Casualty (P&C) insuranceBPO into Leaders, Major Contenders, and Aspirants. The PEAK Matrix is a framework that provides anobjective, data-driven, and comparative assessment of P&C insurance BPO service providers based on theirabsolute market success and delivery capability.Based on the analysis, Cognizant emerged as a Leader and a Star Performer. This document focuses onCognizant’s P&C insurance BPO experience and capabilities. It includes: Cognizant’s position on the Everest Group P&C insurance BPO PEAK Matrix Detailed P&C insurance BPO profile of CognizantBuyers can use the PEAK Matrix to identify and evaluate different service providers. It helps them understandthe service providers’ relative strengths and gaps. However, it is also important to note that while the PEAKMatrix is a useful starting point, the results from the assessment may not be directly prescriptive for eachbuyer. Buyers will have to consider their unique situation and requirements, and match them against serviceprovider capability for an ideal fit.Copyright 2017, Everest Global, Inc.EGR-2017-11-E-21312
Everest Group’s definition of insurance includes thefollowing three segmentsFocus of this reportInsuranceP&C insuranceL&P insuranceReinsurance Property Life insurance Property & casualty Casualty Annuities and pensions Life & pensions Specialty insurance Life insurance withaccelerated benefits (Life )Notes There are multiple operating-model alternatives, ranging from internal shared services / Global In-houseCenters (GICs) to third-party outsourcing. This report focuses primarily on the third-party models This report covers vertical-specific BPO within the P&C insurance space. It does not include coverage ofhorizontal business processes such as F&A, HR, procurement, and contact centers Health insurance BPO is not covered in this report12Business-to-Consumer relationshipsBusiness-to-Business relationshipsCopyright 2017, Everest Global, Inc.EGR-2017-11-E-21313
Everest Group PEAK Matrix – 2017 P&C InsuranceBPO market positionsPerformance Experience Ability KnowledgeEverest Group PEAK Matrix for P&C Insurance BPO1Leaders75th AspirantsStar Performers75th percentileTCSShearwater HealthMajor ContendersLeadersEXLCSCCognizantMajor ContendersSutherland25th percentileMarket success(Revenue, number of clients, and revenue growth)HighMphasisAspirantsSyntelHCLIntelenet NIITCapgeminiLowLow25th percentileHighP&C Insurance BPO delivery capability(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)1 Service providers scored using Everest Group’s proprietary scoring methodology given on page 15Notes: Assessment for Accenture, Capgemini, Capita, CSC, Intelenet, Mphasis, and Syntel excludes service provider inputs on this particular study and is based onEverest Group’s estimates, which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers,their public disclosures, and interaction with buyers.Source: Everest Group (2017)Copyright 2017, Everest Global, Inc.EGR-2017-11-E-21314
Cognizant is a P&C insurance BPO Star Performerbased on strong forward and upward movement overtime on the Everest Group PEAK MatrixChange in Cognizant’s positioning on the Everest Group PEAK Matrix for P&C Insurance BPOJune 2016Market successLeadersCognizantJune 2015Market success in twelve months ending in June2016 Signed 6 new contracts during from June 2015 toJune 2016; one of leading service providers in termsof new contract signings Registered over 15% revenue growth on a substantialbase and contributed to the market expansionMajor ContendersDelivery capabilityCapability enhancements in twelve months ending in June 2016 Bolstered business from Europe and fortified global deliveryfootprint for P&C insurance processes Augmented suite of technology tools and added several newanalytics-powered solutions for P&C insurance BPO such asMaximus, Suspense Analytics, Presales Analytics, and FRISS(fraud analytics)Source:Everest Group (2017)Copyright 2017, Everest Global, Inc.EGR-2017-11-E-21315
Cognizant (page 1 of 5)Everest Group assessment1Measure of capability:Best-in-classNot matureLeadersMajor ContendersAspirantsDelivery capabilityScaleScopeTechnology andinnovationDelivery footprintStrengths Buyer satisfactionOverallMarket successAreas of improvementCognizant’s substantial market share, referenceableclient base, and sustained growth in P&C insurance BPOhas strengthened its foothold in North American P&CmarketRobust capabilities in analytics, regulatory reporting, andrisk management complement the technology-aided P&Cinsurance BPO delivery resulting in a strong valuepropositionHigh buyer satisfaction along with continued investmentsto further strengthen the strong suite of technology andautomation tools is expected to boost its growth Cognizant’s clientele is concentrated around small- andlarge-sized buyers. It needs to gain traction in mid-sizedbuyers to have a more diversified client portfolioBeing among the Leaders, it is imperative for Cognizantto position itself as a one-stop solution for buyers byoffering end-to-end coverage of value chain includingprocesses that are judgment intensive and specialized innatureWhile Cognizant rates high on buyer satisfaction index,referenced buyers expect higher leverage of RPA andautomation and better stakeholder management1 Based on contractual and operational information as of June 2016Source: Everest Group (2017)Copyright 2017, Everest Global, Inc.EGR-2017-11-E-21316
Cognizant (page 2 of 5)P&C insurance BPO – overviewCompany overviewCognizant is a global provider of IT, consulting, and businessprocess outsourcing services. The company has one of thelargest insurance practice in the industry with 34,650 associates, delivering services to 150 clients from 100 delivery centers across North America, Europe and AsiaPacific. P&C insurance practice (IT and business processoutsourcing) consists of 15,400 associates.Key leaders Francisco D’Souza, CEO Rajiv Mehta, President Sumithra Gomatam, President, Global Head - DigitalOperations Vipul Khanna – EVP, Global Head - Digital Operations,Markets Krishnan Iyer – Senior Vice President, Global Head, DigitalOperations, Delivery Banwari Agarwal, Vice President, Global Head, DigitalOperations, InsuranceHeadquarters: Teaneck, New Jersey, United StatesWebsite: http://www.cognizant.com/insuranceSuite of servicesPersonal lines:Full cycle policy administration; underwriting support; newbusiness and renewals; distribution management; customerservice; claims management; and clinical & billingCommercial lines:Full cycle policy administration; new business and renewals;underwriting and audit support; claims management;distribution management; and clinical & billing1 Not disclosedSource: Everest Group (2017)201420152016 (H1)Revenue (US million)Number of FTEsN/DNumber of clientsRecent acquisitions and partnerships Partnered with Measure - Provides Drones as a Service. Enables Insurers to acquire, process, anddeliver actionable aerial data to enterprise customers Partnered with Guidewire - Leading software provider of P&C. Guidewire Partnership commenced in2012. In 2016, we expanded into executing their cloud partner program agreement for Nordics region Partnered with Blueprint - Cloud based requirement management platform provider. Partnershipalignment includes all avenues, consulting, end to end system integration, resell etc. Acquired idea couture - Strengthens Cognizant's capabilities and enables clients to transform itsbusiness environmentRecent developments AssureEngage - A unified platform of engagement for Insurers, agents and customers to offer sales& service of P&C Insurance products. Designed with a "Mobile-first" approach, supports desktop andweb as welll U-Whiz - An interactive Virtual Assistant enabled with Artificial Intelligence, voice and touch basedcommands. It provides intelligent risk analytics and consolidated view of historical data, enabling indecision making and bringing consistency in the way decisions are taken OptimaMediwse - Helps reduce leakages and control costs by building “Treatment plans” for differentinjuries that are used as a reference while processing the incoming claims Unified Insurance Platform (UIP) - E2E P&C insurance solution built using Exigen platformcomprising of pre-configured core & supporting software, hosting, and business & IT operationssupport Blockchain platform - Digital platform that hosts and shares the ledger of transactions across thenetwork, enables insurers in automated underwriting, dynamic pricing, claims adjusting & much more Analytics frameworks - Integrating various analytics tools like iVALUE for P&C Insurance carriers Process ONE framework - A proprietary quality framework for ensuring overall operational qualityand creating a journey for clients from process excellence to reimagining processes. Brings togethercore components of value stream mapping, developing business outcomes, and industry maps tocreate an automated and intelligent processCopyright 2017, Everest Global, Inc.EGR-2017-11-E-21317
Cognizant (page 3 of 5)P&C insurance BPO – key delivery locationsLondonMinotDes MoinesCollege StationSan SalvadorVilniusGdanskGurgaonPuneBengaluruCopyright 2017, Everest Global, ebu8
Cognizant (page 4 of 5)P&C insurance BPO – capabilities and key clientsKey P&C insurance BPO engagementsClient nameRegionClient since yearLeading regional P&C insurance company in the United StatesNorth America2016A global leader in P&C insuranceNorth America2015Leading provider of specialized cost containment services to the WC industryNorth America2014Asia Pacific2014Europe2014Leading U.S.-based P&C insurerNorth America2013A leading Fortune 500 P&C insurer in the United StatesNorth America2008Provider of claims management solutionsOne of the largest insurance companies in the NORDIC countriesP&C insurance BPO FTE mix by ProcessescoveredP&C insurance BPO revenue mixby geographyP&C insurance BPO FTEsplit by delivery locationP&C insurance BPO number ofcontracts by buyer size2FTEs in numbersRevenue in US millionFTEs in numbersNumber of active contractsN/D1100% 100% N/DProduct developmentAsia Pacific (2%)UKShared Services business ocessingmanagement45%90%Policy servicingand reportingNorth America12Note:Source:100% N/DOnshore14%100% N/DLarge 23%Medium 6%71%86%OffshoreSmallNot disclosedBuyer size is defined as large ( US 10 billion in revenue), medium (US 5-10 billion in revenue), and small ( US 5 billion in revenue)Based on contractual and operational information as on June 2016Everest Group (2017)Copyright 2017, Everest Global, Inc.EGR-2017-11-E-21319
Cognizant (page 5 of 5)P&C insurance BPO – technology solutionsNOT EXHAUSTIVEUnified Insurance Return toWork SolutionPlatformOptimaWriteSuiteMobile ClaimsAdjustorToolsNLP ExtractorAssure EngageSolutiondescriptionThis tool helps inextracting,searching,analyzing, andorganizingunstructured dataacross multipleformatsAn engagementplatform forgeneral insurers,offering an Omnichannelexperience acrossthe New Businessand Servicingfunctions formultiple LOBsEnd-to-end P&Cinsurance solutionbuilt using Exigenplatform,comprisingpreconfigured coreand supportingsoftware, hosting,and business andIT operationssupportSolution helpsreduce workers’compensationlosses by enablingfaster return towork using ,OptimaIntake andOptimaQuote)offers anunderwritingsolution suite thatdelivers a portfolioof offerings toaddress criticalbusiness needsIt offers claimsmanagement byempoweringclients, claimsadjustors andback-office throughimprovedconnectivity ew businessmanagement,policy servicing,and claimsprocessingNew businessmanagement andpolicy servicingPolicy servicingand claimsprocessingPolicy servicing,reporting, andclaims processingNew businessmanagement andpolicy servicingClaims ber ofclientsCopyright 2017, Everest Global, Inc.EGR-2017-11-E-213110
AppendixCopyright 2017, Everest Global, Inc.EGR-2017-11-E-213111
Everest Group classifies the P&C insurance BPOservice provider landscape into Leaders, MajorContenders, and Aspirants on the Everest Group PEAK MatrixEverest Group PEAK Matrix1 for P&C insurance BPO75th percentileLeadersTop quartile performance acrossmarket success and capability75th percentileMajor Contenders2nd or 3rd quartile performance acrossmarket success and capability25th percentileMarket success(Revenue, number of clients, and revenue growth)HighAspirants4th quartile performance acrossmarket success and capabilityLowLow25th percentileHighP&C insurance BPO delivery capability(Scale, scope, technology solutions & innovation, delivery footprint, and buyer satisfaction)1 Service providers scored using Everest Group’s proprietary scoring methodology on pages 15 and 16 in its main reportSource: Everest Group (2017)Copyright 2017, Everest Global, Inc.EGR-2017-11-E-213112
Service providers are positioned on the PEAK Matrixbased on evaluation across two key dimensionsMeasures success achieved in themarket. Captured through P&Cinsurance BPO revenue, number ofclients, and YOY revenue growthMarket successLeadersMajor ContendersAspirantsDelivery capabilityScaleMeasures the scale ofoperations (overall companyrevenue and relative focuson the vertical)ScopeMeasures the scope ofservices provided acrossprocesses, geographies,and buyer sizeMeasures ability to deliver services successfully. Capturedthrough five subdimensionsTechnology solutionsand innovationMeasures the capability andinvestment in technologysolutions and ability todeliver value-addedservices (innovation) withhigh technology leverageDelivery footprintMeasures the deliveryfootprint across regions andthe global sourcing mixBuyer satisfactionMeasures the satisfactionlevels1 of buyers across: Business drivers Implementation Process expertise Relationshipmanagement1 Measured through responses from referenced buyers for each service providerSource: Everest Group (2017)Copyright 2017, Everest Global, Inc.EGR-2017-11-E-213113
Additionally, Everest Group confers the “StarPerformers” title on the providers that demonstrate thestrongest forward movement over time on the PEAK MatrixMarket successMethodologyEverest Group selects Market Star Performers based on the relative YOY movement of eachservice provider on the PEAK MatrixYear 1ServiceproviderYear 0In order to assess advancements on marketsuccess, we evaluate the performance ofeach service provider on the PEAK Matrixacross a number of parameters including: Yearly ACV growth Number of new contract signed Value of new contract signedDelivery capabilityIn order to assess advancements oncapability, we evaluate the performance ofeach service provider on the PEAK Matrixacross a number of parameters including: Annual growth in scale Increase in scope of services Expansion of delivery footprint Technology / domain-specificinvestmentsThe top quartile performers on each of thespecified parameters are identified and the“Star Performer” title is awarded to theservice providers with: The maximum number of top quartileperformances across all the parametersabove, and At least one area of top quartileperformance advancement in either of thedimensions2017 P&C insuranceBPO Star PerformersThe “Star Performers” title relates to YOY performance for a given service provider and doesnot reflect the overall market leadership position. Those identified as “Star Performers” mayinclude “Leaders”, “Major Contenders”, or “Aspirants.”Copyright 2017, Everest Global, Inc.EGR-2017-11-E-213114
FAQs (page 1 of 2)Does the PEAK Matrix assessment incorporate any subjective criteria? The Everest Group’s PEAK Matrix assessment adopts an objective and fact-based approach (leveraging serviceprovider RFIs and the Everest Group’s proprietary databases containing providers’ deals and operational capabilityinformation). In addition, these results are validated / fine-tuned based on our market experience, buyer interaction,and provider briefingsIs being a “Major Contender” or “Aspirant” on the PEAK Matrix an unfavorable outcome? No. PEAK Matrix highlights and positions only the best-in-class service providers in a particular functional/vertical.There are a number of providers from the broader universe that are assessed and do not make it to the PEAKMatrix at all. Therefore, being represented on the PEAK Matrix is in itself a favorable recognitionWhat other aspects of the PEAK Matrix assessment are relevant to buyers and providers besides the “PEAKMatrix position”? The PEAK Matrix position is only one aspect of the Everest Group’s overall assessment. In addition to assigning a“Leader”, “Major Contender” or “Aspirant” title, Everest Group highlights the distinctive capabilities and uniqueattributes of all the PEAK Matrix providers assessed in its report. The detailed metric level assessment andassociated commentary is helpful to the buyers in selecting particular providers for their specific requirements. Italso helps providers showcase their strengths in specific areasWhat are the incentives for buyers and providers to participate / provide input to the PEAK Matrix research? Participation incentives for buyers include a summary of key findings from the PEAK Matrix assessment Participation incentives for providers include adequate representation and recognition of their capabilities/success inthe market place, and a copy of their own “profile” that is published by Everest Group as part of the “compendium ofPEAK Matrix providers” profilesCopyright 2017, Everest Global, Inc.EGR-2017-11-E-213115
FAQs (page 2 of 2)What is the process for a service provider to leverage their PEAK Matrix positioning status ? Providers can use their PEAK Matrix positioning in multiple ways including:– Issue a press release declaring their positioning/rating– Customized PEAK Matrix profile for circulation (with clients, prospects, etc.)– Quotes from the Everest Group’s analysts could be disseminated to the media– Leverage the PEAK Matrix branding across communications (e-mail signatures, marketing brochures, credentialpacks, client presentations, etc.) The provider must obtain the requisite licensing and distribution rights for the above activities through anagreement with the designated PoC at Everest GroupCopyright 2017, Everest Global, Inc.EGR-2017-11-E-213116
About Everest GroupEverest Group is a consulting and research firm focused on strategic IT, businessservices, and sourcing. We are trusted advisors to senior executives of leadingenterprises, providers, and investors. Our firm helps clients improve operationaland financial performance through a hands-on process that supports them inmaking well-informed decisions that deliver high-impact results and achievesustained value. Our insight and guidance empowers clients to improveorganizationa
Everest Group’s estimates, which leverage Everest Group’s proprietary Transaction Intelligence (TI) database, ongoing coverage of these service providers, their public disclosures, and interaction with buyers. Source: Everest Group (2017) P&C Insurance BPO delivery capability
