Colonial Life IT Modernization Overview Alan Whelchel Assistant Vice President Global Business Technology UNUM / Colonial Life

Who We Are Founded in 1939; more than 50 years of workplace marketing expertise Market voluntary benefits to employees at the workplace through career agency system Experts in employee benefits communication and enrollment Focused on small and mid-sized commercial and public sector accounts Products include accident, short-term disability, supplemental health, life, cancer and critical illness 10,000-member independent contractor sales organization supported by 1,100 home office employees primarily based in Columbia, S.C. History of financial stability and profitable growth 60,000 accounts and 3.0 million policies in force A long-time industry leader in voluntary benefits provider

Operational Efficiency is Key to Profitability Sample Transaction Volumes – 65% of New Accounts Enrolled within 5 Days – 70% of Individual Applications Issued Automatically – 300 Million transactions per year – 800,000+ policies issued each year – >4 Million payroll deducted premium payments processed per month – 600,000 claims resolved each year – 2,000,000 customer calls each year

Colonial Life IT Strategies Business Driven Approach Invest in proven technologies Insure that tools are a fit for architecture / environment Incremental Implementations Re-use of logic within multiple contexts Layered Application Designs Minimize “rip and replace” Web Services Implementation

Colonial Life IT Modernization “Evolution” 1980’s Core Systems – Sequential Batch COBOL base Realtime Access and Update Enhanced Product Line Support Automation of Underwriting Functions 1990’s Automated Policy Print / Assembly Implemented Laptop Enrollment capabilities Integrated Imaging and Workflow Systems Automation of Call Centers – IVR/Graphical User Interfaces Created Data Warehousing Capabilities Architected Principles of Application Re-use Y2K Remediation

Colonial Life IT Modernization “Evolution” Present Established Public Internet Presence Enhanced Underwriting Capabilities Message Transport Conversion using IBM Websphere MQ Deployed Web and IVR Self Service Capabilities Implemented Web Based Enrollment Capabilities Integration of OCR Payment Processing VOIP and Telephony Suite Modernization Implemented Service Oriented Architecture Infrastructure Began Web Enablement of Re-usable Components via SOA Infrastructure Installed Business Process Management Tools – Rules Engine – Workflow – Process Orchestration

Colonial Life IT Modernization “Evolution” Current Challenges Stresses of Insurance Marketplace – Economic Anxiety – Health Care Reform – Increased Competition – Shrinking Business Cycles IT and Business Cultural Acceptance – Services Design – Business Process Design – Messaging – Agile Methodologies Shrinking Talent Pipeline Specialization of Skills Pace of Technology Advances

Colonial Life IT Modernization “Evolution” Short-Term Technology “Opportunities” Alignment of Business Architecture and IT Architecture Focus on Business Event Processing Expand Use of Rules Engines Expand Self Service Capabilities 24 x 7 Availability Expand Business Intelligence Capabilities Expand Device Support (mobile applications phones, tablets etc.) Cloud Computing