Vendor Analysis
published on Nov 30, 2017
Report Overview:
This NelsonHall vendor assessment analyzes SE2's offerings and capabilities in Next Generation Life, Annuities & Pensions BPS.
Who is this Report for:
NelsonHall’s Next Generation Life, Annuities and Pensions BPS profile on SE2 is a comprehensive assessment of SE2’s offerings and capabilities designed for:
- Sourcing managers monitoring the capabilities of existing suppliers of Life, annuities and pensions BPS services and identifying vendor suitability for life, annuities and pensions BPS RFPs
- Vendor marketing, sales, and business managers looking to benchmark themselves against their peers
- Financial analysts and investors specializing in the support services sector.
Scope of this Report:
The report provides a comprehensive and objective analysis of SE2’s next generation life, annuities and pensions BPS offerings and capabilities, and market and financial strengths, including:
- Identification of the company’s strategy, emphasis, and new developments
- Analysis of the company’s strengths, weaknesses, and outlook
- Revenue estimates
- Analysis of the profile of the company’s customer base including the company’s targeting strategy and examples of current contracts
- Analysis of the company’s offerings and key service components
- Analysis of the company’s delivery organization including the location of delivery locations.
Key Findings & Highlights:
SE2 is a niche BPS vendor specializing only in the life insurance and annuities markets. Born out of insurance company Security Benefit Life, SE2 was incorporated in 2005, (although its core product offering predated that) and is today headquartered out of Topeka, Kansas.
SE2’s main propositions to its clients are to assist them to:
- Accelerate product innovation
- Increase speed-to-market for new product launches
- Expand into new market segments
- Acquire direct customers digitally
- Variabilize operating cost of open blocks
- Achieve effective cost structures for closed blocks
- Streamline administration of acquired blocks.
In addition, SE2 provides financial product trading and pricing services to some of its clients, with ~$100m average daily trade dollars, and ~2,000 different funds serviced for ~120 fund companies in 2016 at a 99.98% accuracy rate. In general, SE2 aims to differentiate itself from competing vendors by levering its 125-year life insurance heritage, its “leading edge” end to end digital platform, and by positioning as a hyper-focused vendor that only focuses on the U.S. L&A insurance vertical. An estimated 75% of SE2’s business is registered business, though it can provide full policy administration support for its clients. SE2 has ~20Inforce TPA clients, of which ~50% also leverage SE2 for new product introduction and open block administration. Its life and annuities BPS services are supported by ~2k FTEs, including those in India.
As of mid-2017, SE2 is undergoing a significant upgrade to its Aurum platform with the aim of driving an improved customer experience, and incorporating robotics, automation and new digital capabilities This fixed capital investment plan has an estimated cost of ~$80m; the investment began 18 months ago and is expected to be completed by the middle of 2018.
