OMG Property and Casualty Standard Submitters Meeting May 2 nd 2008

Agenda Background Who is involved P&C RFP Overview Approach to RFP Submission

Background In Dec. 06 P&C Carriers approached OMG to develop* Information Models for P&C  Extensible to other Insurance domains Leverage OMG’s modeling expertise and Insurer’s domain experience OMG issued* a Request for Proposal (RFP) in June 2007 (essentially a requirements document) * OMG staff does not develop standards, OMG members do, OMG provides a neutral Process to develop standards

Who is involved (Submitters/Reviewers/Supporters) Adaptive ACORD Allstate Advanced Systems Management Group (ASMG) Insurance Company of the West Inherit No Magic Ohio Mutual Insurance Oracle (iFlex) Outline Systems Penn National Insurance SAS Institute Smallwood, Maike & Associates Unisys Vertafore, Inc. Employers Insurance Harleysville IBM CSC Microsoft Arbella Assurant CGI Chordiant Embarcadero Exigen Farmers Mutual Insurance ILOG Main Street America Utica National AIG Celent SAP State Auto MetLife Progressive Gail Austin LLC Not a final/complete list

5 P&C RFP: Scope summary The RFP solicits proposals for Information Models to address the data management (modeling/database design, analytics and exchange) needs of the P&C Insurance Community Glossary of P&C Business Terms and accompanying metadata (definition, source (SME/Authority/Standard…), format, date, revisions/version, Acronyms for example) Subject areas in scope: Claim, Underwriting, Product Management… (not a complete list)

6 P&C RFP: Scope summary continued Reference model* that supports the subject areas in scope  Party, Party Role  Employee  Agent  Producer  Claimant  Line of Business  Adjuster  Driver  Third Party and Legal  …  Contact mechanism  Location… * Existing OMG standards like Organization Structure metamodel (OSM) and ‘Party’ Model will be leveraged

Deliverables P&C Submission Document containing P&C Business Glossary Conceptual data model Logical data model Dimensional model XMI representation of models Traceability maps (Glossary <> Models)

Model Driven Architecture (MDA) ( Foundation of P&C Standard) Property and Casualty Standard Mandatory Components XSD SQL DDLRDF, OWL XMI, XML Logical (ER) Data Model Conceptual Data Model P&C Business Glossary, Rules Traceability of P&C Business Concepts <> Models Optional Components Ontological Model Business Glossary Translated in other languages Traceability of P&C Business Concepts  conceptual, logical data models… XML Schema Model Physical Data Models (Transactional, Analytical) Core Components

9 Semantics of Business Rules and Vocabulary (SBVR)  Allows SMEs to define business concepts in a natural language yet formal enough to capture associated rules and context to develop rich business glossaries (document and retain your business know-how) Ontology Definition Metamodel  Enables development of Ontologies for a given domain  Can be used by people; emphasis on machine interpretability to exchange domain information Common Warehouse Metamodel (CWM)/Information Management metamodel* (IMM)  IMM will enhance CWM and bridge the gap between UML, data and XML modeling XML Metadata Interchange (XMI)  Enables exchange of metadata across data modeling, BI, ETL… tools and repositories Organization Structure Metamodel (OSM)*  Organizations, relationships, positions and roles *in development Relevant OMG Standards

Business driven Information management: Nirvana State! BusinessInformation Architects, Modelers, DW/ETL, BI staff… Application, Service development Define Business Concepts, Rules in Natural Language -Policy is an Agreement between Parties (Seller, Buyer) -Agreement is: ‘Policy’ in Life and P&C -For Annuity it is a ‘Contract’ -Policy is ‘inforce’ if the Policy has not expired and….. Bus. Vocabulary, Rules standard Import into Ontology modeling tool -Develop Ontology, (output RDF, OWL…) - Vocabulary validation, reasoning… Ontology Modeling Std. Ontology Modeling Std. Import Business Vocabulary, Rules into data modeling tool that can Transform it into Conceptual model Data modeler can further develop logical, physical, dimensional models… (automation of vocabulary to data models >> modeler productivity) Trace (bi-directionally) Business Concepts to data models, XML Schemas… Import Vocabulary/Rules, models into ETL, Data Quality, BI tools Import Business Vocabulary, Rules to develop: Use Cases Class diagrams, … Define Services Information Modeling Std. UML, SOA Modeling std. Traceability All of this translates into: Reuse Automation Lower cost of development Consistency across business and IT

11 Business Glossary: ‘Lingua Franca’ of an Insurer Subject Matter Experts define the Business Concepts, Rules, Context (Policy, Claim, Loss…) Business Process Modelers Business Analysts, Data Modelers, DBAs, Data Integration, Data Quality, ETL Users Vendors, System Integrators, Partners.. Legal, Compliance Application, Service Developers P&C Business Glossary Meaning, Rules, Context… Producers and Consumers of a Business Glossary

P&C Business Glossary: The ‘DNA’ of Information Models DDL XSD Traceability OWL, RDF… Conceptual Data Model P&C Business Glossary, Rules Logical (ER) Data Model (LDM) Relational Model Dimensional Model XML Schema Model Ontological Model Bottom line: Same Business Concepts represented in many different Models and Formats for a stated purpose and Traceability is the Key success factor Data Exchange DW, Transactional Systems

Business Function > Process > Data

Proposed Working Groups P&C Core Model (Reference subject area) Party, Party Roles, Location… Claim Underwriting Product Management Other… Working Group 1 - WG Leader - SME(s) - Data Modelers Working Group 2 - WG Leader - SME(s) - Data Modelers Working Group 3 - WG Leader - SME(s) - Data Modelers Working Group 4 - WG Leader - SME(s) - Data Modelers Project Coordinator Project Sponsor

Summary of Overall Process

Managing P&C Business Glossary

P&C Core Model -Conceptual (Reference Subject Area)

Claim Subject area (conceptual, not complete)

Claim notification (Logical data model, not complete)

Roles/Responsibilities RoleResponsibilitiesAdditional Comments/Notes Project Sponsor  Vision and scope of the P&C standard  Promote the development of standard, socialize/recruit P&C SMEs from carriers  Work with Project coordinator and working group project leaders to ensure timely development of the deliverables Bill Jenkins from Penn National Insurance (PNI) is the Project Sponsor Project Coordinator  Work with Project Sponsor and WG project leaders to ensure timely development of the deliverables  Ensure compliance to OMG process for development of standards  Present the progress at quarterly OMG meetings  Ensure availability of tools needed by submission team and coordinate training as needed  Assist with import/export of business glossary, information models metadata into the metadata repository  Assist with consolidation of the P&C submission document  Experience needed with: - OMG Process for standards development needed - OMG standards related to Information modeling and metadata exchange - OMG standards based Tools

Roles/Responsibilities RoleResponsibilitiesAdditional Comments/Notes Working group Leader  Work on assigned subject area with SMEs and data modelers to ensure timelines and deliverables are met (including development of project plan)  As needed assist with resolution of issues, coordinate/communicate progress at monthly status meeting  Develop assigned sections of the P&C Submission document WG leaders for:  P&C Core Model (reference subject area)  Claim subject area  Underwriting subject area  Product management subject area P&C SMEReview and validate P&C business glossary as part of the conceptual model validation Review and validate logical and dimensional models (by working with subject area leaders and data modelers) Data Modeler  Develop Conceptual, Logical and dimensional models  Review and update the models as needed OntologistDevelop P&C Ontology that corresponds to the subject areas identified in the approach document Expertise required on OMG Ontology standard

Candidate Sources for proposed standard Penn National’s Dimensional Model Iflex’s logical data model IBM IAA glossary Insurance Company of the West Conceptual data model/glossary

Candidate tools Data Modeling tool from Embarcadero  EA/ER Studio for Conceptual, Logical, Physical and Dimensional modeling Metadata management repository from Adaptive  Business Glossary, data models, Ontology, XMI, XML Schemas management  Traceability maps (Business Glossary <> models) Business Glossary and Business Rules Modeler from Unisys  Business User friendly MS Word add-on for Business Glossary & associated Rules development  Optional capability to generate ‘Services’ Ontology Modeler from Sandsoft  Plug-in to IBM Rational Software Architect (RSA)

24 Proposed timeline Sept OMG Technical Meeting Initial Submission document Draft Core conceptual data model with Business Glossary Dec OMG Technical Meeting Revised Submission document Core Conceptual data model Draft Core logical data model Draft Claim, Underwriting, Product conceptual model March 2009 OMG Technical Meeting Revised Submission document Core Logical data model Revised Claim, Underwriting, Product logical data model Draft Dimensional model Draft Ontology June OMG Technical Meeting Revised Submission document Claim, Underwriting, Product logical data model Revised dimensional model Revised ontology Draft Traceability map Sept OMG Technical Meeting Final Submission document Core, Claim, Underwriting, Product Conceptual, logical data models Business glossary for above models Ontology representing above models Dimensional model XMI of all models Traceability map Assumes June 1, 2008 start

Useful Links, contacts  OMG Insurance WG Wiki:  RFP  Information modeling standard Wiki  OMG website  Model Driven Architecture  OMG Finance Domain task Force Contacts: Bill Jenkins Richard Soley Ken Berk Harsh Sharma Pete

Thanks for your Time..