Insurance the way we do it

Comprehensive Testing Services for Life

Insurance Systems

Capgemini’s testing To support the growing number of complex applications running the business, life
insurers require robust testing capabilities. But as core systems become increasingly
services provide the interdependent, mobile and flexible, more time is needed to test. Yet life insurers are
framework and tools also facing market pressures that compress time to market, increasing pressure to
shrink development and testing timeframes.
to drive significant
improvements in quality The end result? Test managers have less time to plan and execute test programs to
meet business needs.
and efficiency throughout
the insurance lifecycle. Capgemini provides end-to-end services to support testing for life insurance
applications. Our testing specialists have experience testing life insurance systems to
help insurers gain predictability and reduce costs without sacrificing quality.
Capgemini’s Testing Services are Designed
to Address Life Insurance Challenges
Today, all insurers count on IT systems to run the business. From underwriting to
policy administration to billing, core applications drive the workflow and can make
the difference between gaining new customers or losing market share. Customers
are demanding more flexibility, mobility and transparency from their insurers
who in turn are struggling to transform front and back office operations to meet
consumer expectations and increased regulations. Testing is a critical part of this
transformational landscape.

Mature testing programs provide validation that software and applications perform as
designed, are rolled-out quickly, and mitigate the risk of business disruption during
and after deployment.

Capgemini has one of the largest global testing practices in the world with 9,500
test professionals including over 3,500 focused exclusively on testing insurance and
financial services systems and applications. With almost 20 years of experience
delivering testing services using a global delivery model, Capgemini has a
large library of proven tools, accelerators and methodologies to support testing
engagements. Our insurance test specialists have experience working with many
common life insurance applications and customized solutions and can provide
guidance to streamline and accelerate your testing efforts.

Our testing offerings tailored for life

insurance companies include:
Critical areas for testing life insurance applications
• Quality Blueprint™ provides an
assessment approach and tools
Direct Channel Call Center Claims to assess your current testing
• Application usability • Security and Access • Claims Life Cycle (E2E) Testing organization to create a roadmap
• Application performance • IVR integration • Claims triage and assignment to a higher level of test maturity and
• Cross browser/cross • Call routing and assignments • Claims Accounting/Reserving
platform access • Reflexive Questions • Third Party EDI/messaging
effectiveness.
• Mobile access (rules based scripting)
• Test Automation creates a
foundation to test efficiently
New Business Policy Servicing and effectively through
• Quick and detailed
Quote
• Policy Life Cycle
Testing (E2E)
automation. Capgemini has
• Benefit illustration • Policy Changes developed an extensive library
• Validate Rates - factor (Financial & Non-
combinations Financial) of scripts and models to test life
• Commissioning • Policy Lapse & insurance applications.
Calculations Reinstatement
settlements • Policy aging – run • Test Center of Excellence
• Batch job schedules cycles
and runs • NPV/NAV valuations provides a model to leverage the
• Benefits summary • Premium due alerts experience and knowledge of
validation
Capgemini’s testing organization to
lower risk, increase performance,
and reduce testing costs.
Reports/BI Underwriting Integration
• User Acceptance Testing as
• Creation of quality data for • Rating efficiency • Web service push/pull efficiency
reporting • Complex business rules • Complex interface integration
a Service shifts work from your
• Bulk data creation for roll up • Requirements Management • Data Integrity subject matter experts and business
reports – vendor interfacing • Source/Destination Formats
• Adherence to regulatory • Manual & Straight Through
stakeholders by using dedicated
• Production like interfaces
requirements Processing Capgemini test professionals with life
• Calculated (formula based • Underwriting Quality
fields etc in reports insurance business expertise.

2
 Insurance the way we do it

Quality Blueprint™: Plan Your Path to

Higher Test Maturity in 6 Weeks
Delivered by experienced Capgemini test consultants, Quality Blueprint helps insurers
move to a higher level of test maturity in an accelerated and structured way. We work
with you to build an actionable roadmap with recommendations based on industry best
practices, peer benchmarking, and award winning quality frameworks. Quality Blueprint
helps you understand how your testing organization measures up against current
industry benchmarks calculated based on data from previous test assessments for global
insurers plus survey data from Capgemini’s annual World Quality Report.

Typically a Quality Blueprint assessment requires four to six weeks and is based on
our proven Test Process Improvement (TPI Next®) framework. Quality Blueprint provides
the tools to help you:

• Assess your company’s testing maturity based on your own processes,

capabilities and performance.
• Benchmark testing maturity against life insurance industry peers to gain a
view of where you stand compared to the competition.
• Identify key challenges in your test organization and understand how other
insurers are addressing similar issues.
• Define a clear, controllable improvement roadmap and target key focus areas
for implementation.
• Leverage Capgemini’s insurance domain specific accelerators and industry
best practices for a quick start in making productivity improvements that result in
tangible efficiency and cost savings.
• Reap initial benefits from quality process transformation in less than four
weeks through actionable plans prioritized based on effort and value.

After optimizing quality assurance processes, Capgemini clients have achieved post
production defect leakages of less than 2% and cost savings starting at 15%
and as high as 50% for managed or automated testing services. Our business-
driven approach to improving your testing process provides several benefits for insurers:

• Gain greater insight into your current

testing efforts.
• Create a customized roadmap to help
Assess. Understand. Improve
optimize, structure, and refine testing.
Our Test Process Improvement and Quality Blueprint service provides • Align test processes with your key business
a detailed assessment of your current testing process maturity and a drivers. 80% of users report that TPI Next®
defined road to improvement. generates strong ROI and improves quality
With a clear understanding of your current state and a plan for and agility in line with business goals.
improvement, Capgemini assists in implementing the steps that drive • Increase productivity and reduce time-
greater consistency in quality, more effective control over test execution, to-market through automation and
and improved cost savings. repeatable processes.
This process of improvement is not a one-off solution but an iterative, • Access insurance industry best-practices
repeatable approach, enabling true testing performance optimization. and experience, providing the tools and
skills to accelerate your test strategy
Establishing the sound foundation for short and long term improvements, and implementation.
using TPI Next® and Quality Blueprint will ensure that your
• Minimize risk by using proven frameworks
applications and services operate to their full potential.
that support regulatory compliance specific
to insurance across the globe.

3
Test Automation: Accelerate Your
Testing Efforts
According to the World Quality Report 2012, test automation is one of the least mature
areas in testing for financial services and insurance firms. Some common insurance
carrier questions include:

• How can you ensure complete test coverage across multiple applications or versions?
• How can you lower testing costs?
• How can you speed up testing cycles?

Automation testing answers each of these problems and can help save 30-40% over
manual testing efforts.

Addressing Increasingly Complex Testing Needs

As life insurance systems and applications become more complex, testing of these
applications also becomes more difficult and time consuming. At the same time,
insurers require flexible and agile systems to respond quickly to market demands.
Insurers must also accelerate testing efforts without sacrificing quality.

Test automation helps insurers achieve higher productivity, reduce testing cycle
time, increase predictability, improve quality and lower costs. More importantly,
automation helps simplify testing across multiple environments, devices or social
networking channels.

Automation testing can help life insurers test:

• Complex business flows and highly integrated systems.

• Multiple technologies including mobile, cloud and social.
• Systems with significant changes or transformation.
• Systems with complex data including rate validation, quotes, new business rules,
and underwriting rules.

Every company has uniquely complex

Capgemini’s Test Automation Service Offering
systems that drive the business,
therefore there can never be a one size
fits all approach for test automation.
Service Offering

That’s why our test automation experts

Automation Test Automation Test Automation Assessment have developed reusable automation
Consulting As Service Center of Excellence Services
frameworks for insurance that can be
adapted to your unique requirements. Our
Automation Competency Research & tools include repositories of automation
Automation Lab Framework
Solution Enabler

Process Building Development

assets for common insurance business
● Infrastructure & ● Develop common ● Define methodology ● Develop In house ● Open Source
Setup Lab Framework ● Managing tools integration processes which can help jump start
● Tool Licenses ● Customize automation artifacts ● Building Knowledge ● Developing Cost
● System Framework ● Scripting Standards repositories efficient In-house automation efforts.
Requirements ● Implement across ● Internal and External Tools
● Implement Best
● Maintenance projects Certifications
Practices
● Develop tool specific
add-ins
Capgemini has extensive experience
in providing advisory and assessment
HP
services to help you decide how to best
COE

Center of
Accelerators Vendor Tie-ups
Excellence
implement automation. We look at the
IBM
extent of automation in your current test
HP & IBM Open Source
Quick Test Professional, Others organization and help you identify and
Tools

Selenium, Watir,
WinRunner, Quality Center, Rational Test Complete, Test Drive,
Functional Tester, Rational Robot, Green Hat, LISAiTKO
SOAP UI, Testopia, improve automation activities.
Rational Quality Manager Bugzilla, Jira
Accelerators

Orthogonal Array
CAFE Framework Test Data Generator
Testing Solution (OATS)

Rapid Mainframe Component Based

Automation ROI Calculator
Interaction Tool (RMIT) Test Desing (CBTD)

4
 Insurance the way we do it

Test Center of Excellence: Share the Risk

with a Trusted Partner
Capgemini offers life insurers the opportunity to address major testing and quality
assurance challenges through our Test Center of Excellence (TCOE) offering. A
TCOE is an enterprise wide, fully customized service in which Capgemini takes
responsibility for test activities from start to finish. A collaborative approach to
sourcing testing and quality assurance services, TCOE is the right solution for life
insurers who want to quickly transform the testing function by transferring day-to-day
responsibilities without losing overall control.

The Test Center of A TCOE offers an optimal model to standardize testing practices, methodologies and
Excellence offers a metrics across the testing organization. Capgemini’s World Quality Report 2012-
2013 showed that while quality assurance organizations at insurance and financial
complete test solution services companies continue to mature, an increasing number are leveraging
that combines a TCOE model to act as a consolidated testing hub across the company. Key
objectives of a Test Center of Excellence include:
industrialization,
• Reduce labor efforts and associated costs through industrialization and reuse.
innovation, intellectual • Decrease cycle time and improve time to market through test automation and
property, industry innovation techniques.
expertise and scale to • Improve the current level of quality through process improvements,
standardization and risk-based testing approach.
lower costs. • Increase transparency through metrics and key performance indicators (KPIs).

The components of our TCOE solution offering include:

• TMap Next ®, our business-driven, risk-based approach for structured and

industrialized software testing.
• State-of-the-art industrialization combines business-driven test management
processes with test automation frameworks, tools, and test workbench solutions.
• Innovation Labs in North America, India and Europe where we invest in
business-focused research, explore emerging technologies, and develop
specialized tools and reusable accelerators.
• A dedicated and stable team that is assigned to your engagement to maintain
and reuse the unique knowledge we gain. Our team can be scaled on demand to
bring you expertise across specialized skills.
• Business-driven vertical expertise with proven experience creating TCOEs for
global life insurers.
• Rightshore® global delivery model that ensures onshore, offshore and near
shore test centers use the same high quality and efficient test processes and
methodologies.

Outcomes & Benefits

Our clients have achieved the following benefits from a TCOE:

• Cost savings of at least 25% in year one from an optimal balance of onshore,
offshore and near shore.
• Up to 30% reduction in overall test efforts through standardization of
test processes.
• Measurable improvement in quality with detection rates of 97% or more.
• Improved time-to-market by 15% through more mature testing processes
and procedures.

5
User Acceptance Testing as a Service: Life
Insurance Expertise When You Need it Most
User acceptance testing is a key part of the testing lifecycle. But while most insurers
recognize the importance of UAT, users and subject matter experts often juggle their
normal job priorities during testing and send informal emails about problems that are
found. The World Quality Report 2012 notes:

• 16% of financial services and insurance organizations outsource UAT.

• UAT is considered specialized testing, requiring business knowledge.
• The majority of UAT is performed by subject matter experts who spend on
average <4 hours a day testing during the UAT phase.

To help better manage the UAT phase, Capgemini provides UAT as a Service to
address major test challenges, providing carriers with a proven and mature test
organization to optimize UAT efforts.

Capgemini’s UAT offering is an end-to-end fully customized service in which we

take responsibility for test activities at either the enterprise or program level. A
collaborative approach to sourcing testing and QA services, UAT as a Service is
for carriers who want to transform their testing function and achieve high quality
systems, reduce costs and improve effectiveness while maintaining the balance
between day-to-day responsibilities, and overall control. Capgemini can support
insurers with two different models:

• Collaborative Model: The insurer retains control of UAT and your SMEs and
business users help perform test design, planning and execution. Capgemini
provides test data management, deployment, metrics, tools and defect tracking,
and scripting and execution for automated testing.
• Fully Outsourced Model: Capgemini takes complete responsibility for
performing and managing UAT while committing to quality SLAs. Our team
includes both test professionals and insurance industry specialists. Capgemini
works with your SMEs to validate the test plan, scenarios and cases before
executing UAT.

How We Address Common Challenges for User

Acceptance Testing
Challenge Capgemini’s Solution

SMEs have no Leverage automation tools such as Capgemini’s

time to support Automation Framework Environment (CAFÉ) where
UAT SMEs spend time designing test scenarios and not
executing tests
Users not happy Apply Requirements Center to visually model requirements
with first hand and wireframes so that users get an early look
view of the
application
Critical defects Implement tools such as application heat maps to identify
are found in later high-risk components and understand defect density for
testing phases specific problem areas

Lack of valid Begin planning for test data very early in the process so the
test data right data is available for testing. Capgemini applies data
masking to ensure that sensitive customer and financial
data is secure and follows strict information security
policies and procedures that are ISO 27001 certified

6
 Insurance the way we do it

In Practice: Capgemini’s Proven Track Record

with Life Insurance Testing Engagements
Challenge Capgemini’s Solution Benefits

A leading U.S. life insurer Capgemini conducted a Quality Blueprint • Lowered testing costs
was managing a complex assessment in five weeks, interviewing 30 by 12% in eight months
mix of legacy and web-based stakeholders across different business lines, through test automation.
applications for policy acquisition development, testing, and infrastructure. After • Reduced requirements
and administration. The insurer comparing results against industry benchmarks, defects by 15% and
wanted to reduce overall testing we recommended improving governance, test increased test coverage by
costs, lower defect leakage and processes, planning and estimation; increasing introducing BA-QA role.
bridge the gap between business use of automation for regression testing; and
objectives and application introducing the business analyst-quality assurance
modifications. (BA-QA) role to bridge requirements gaps.

A leading U.S. life insurer was Capgemini assessed the current state and • Achieved annualized
facing manpower issues for planned the future state model to utilize Test savings of $184K or 8,000
manual and regression testing Automation. We established scalable, reusable man hours.
efforts. Transactions such as frameworks and automation tools to improve • Reduced cycle times.
policy creation and underwriting testing productivity and created test data • Lowered defect leakage.
processing were effort intensive for functional testing using our automation • Improved deliverable
and frequent application changes framework. We also optimized license usage quality by minimizing
required repeat testing. and cost through our offshore test lab and manual test efforts.
eliminated manual intervention through automated
asynchronous testing.

A major European life insurer Capgemini developed a Test Center of Today we are the preferred
wanted to standardize test Excellence to help reduce testing time and vendor for all quality
processes across the organization costs without sacrificing quality. Our testers assurance testing and test
while reducing labor costs, test brought life insurance experience to manage automation for this client.
cycles, and post production testing for key business process areas such as Key achievements:
defects. The insurer wanted a new business, policy servicing, inquiries and
• Significantly reduced post-
partner who could provide end- workflows. We developed the test suite, tested
production defects.
to-end test services including the implementation for a new business tool
• Automated test scripts for
functional and regression testing. before the product user manuals were available,
regression testing.
and provided UAT test support to business
users. Overall the team supported 11 monthly
releases and performed Life 70 testing for 12
product releases.

The Asia Pacific operations of For this User Acceptance Testing as a Service • Capgemini is ranked as
a global life insurer was using engagement, Capgemini helped standardize test the No. 1 testing service
different versions of a policy methodologies for test planning, preparation provider for our client
administration system across and execution across all eight countries. We set based on their supplier
eight countries in the region. This up testing processes and developed in-house performance ratings.
resulted in large IT demands as automated tools for use across the region to help We earned this honor by
each country tried to adapt the standardize test activities so that country UAT successfully completing
application to accommodate and Capgemini UAT teams work simultaneously five major releases with no
local needs and ensure smooth without duplicating efforts. We helped our client post production defects.
integration with the regional life reduce QualityCenter licenses from 120 to 30,
system in UAT. lowering test costs.

7
 www.capgemini.com/insurance

Why Capgemini?
• Industry standards including TMap Next®, TPI Next® and Quality
Blueprint™.
• More than 14 books published on Quality Management.
• Unique financial services testing focus with proven accelerators for the
insurance industry.
• More than 950 testing professionals dedicated to insurance, including
those certified as Certified Software Test Engineer (CSTE), ISTQB,
INS21/22/23, LOMA and PMP.
• Highly skilled testing leadership with an average of 10-15 years
experience.
• Rightshore® network of centers in 40 countries provides the right skills in
the right location at the right cost.
• Strong alliance partnerships with leading quality assurance and
testing vendors including IBM, HP, Blueprint Systems, Surgient,
ITKO and Aegisoft.

For more information, contact us at: [email protected]

or visit: www.capgemini.com/insurance

About Capgemini
With 120,000 people in 40 countries, Capgemini is one of the
world’s foremost providers of consulting, technology and
outsourcing services. The Group reported 2011 global revenues of
EUR 9.7 billion. Together with its clients, Capgemini creates and delivers
business and technology solutions that fit their needs and drive the results
they want. A deeply multicultural organization, Capgemini has developed
its own way of working, the Collaborative Business Experience™, and
draws on Rightshore®, its worldwide delivery model.
FS201212070950CS

Learn more about us at

www.capgemini.com
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The information contained in this document is proprietary. ©2012 Capgemini.

All rights reserved. Rightshore ® is a trademark belonging to Capgemini.