The Role of Information and Communication Technologies (57)

Global Agenda Council on Social Security Systems
A Framework for Sustainable
Security Systems
August 2014
Second Edition

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REF 171213

84 A Framework for Sustainable Security Systems
The Role of Information and Communication
Technologies
By Ali M. Al-Khouri, Director-General, Emirates Identity Authority; and Hans-Horst Konkolewsky,
Secretary-General, International Social Security Association
1. Background: Growing Responsibilities of
Social Security Institutions
To pursue their mandates, social security institutions have
to implement increasingly critical processes and to manage
large volumes of data, having to satisfy more demanding
requirements. As the political impact of social security
grows, institutions are also scrutinized on their efficiency and
the quality of their services.
It is important to highlight the wide range of functions that
social security institutions have to carry out, which cover the
population’s life events from birth to long after death and
include measures with high economic and social impact.
From a social security functions (business lines) perspective,
some of the key processes to be implemented by social
security institutions include:
– The registration of contributors and beneficiaries.
Challenges involved in the implementation of these
systems include the definition and implementation of
unified databases and data management processes.
– Benefit granting and payment. Challenges involved in the
implementation of these systems include the reliability
and performance of systems determining eligibility and
amount calculation.
– Collecting contributions. Challenges involved in the
implementation of these systems include the reliability
and performance of systems validating data submitted
by contributors as well as those calculating contribution
amounts.
2. Main Contributions of Information and
Communication Technologies
Information technology is all-pervasive in the current context
of daily life. Information gathering, information dissemination,
decision-making, communication, ease of access… The list
of terms that define how information technology contributes
to daily life is endless. Social security as a business
domain is never far from the influence of information and
communication technology (ICT), which increasingly is
playing a strategic role in the implementation of social
security systems.
Key components of a solid technology support model for
social security systems are trust, confidentiality, integrity,
accessibility and ability. All these contribute to providing
security to society and thus the individual. The idea of
providing security should not then be seen in the context of
a retroactive or reactive provisioning of services, but from
a proactive mode. Security is when an individual and, by
extension, the society as a whole experience social benefits
in a time of need!
The technology model can be envisaged as a wide array
of services. These services are available in different pools
and provided by different entities. The various entities need
to be engaged in a constant mode of proactive interaction,
bound and trusted by their digital identities in the networked
digital world. This digital world is the handiwork brought
about by technology. The benefit pools likewise need to be
interconnected.
The application of ICT has enabled not only the automation
of specific processes, but also the transformation of
operations and services, resulting in improvements in
the performance and service quality of social security
organizations.

85A Framework for Sustainable Security Systems
Figure 3: Technology Model for Social Security
The usage of ICT has thus enhanced various institutions’
back-end as well as front-end processes and services.
Improvements to institutions’ back-end processes,
which comprise the core administrative (business)
processes, have been mainly based on high-performance
data processing technologies. These technologies, provided
by new-generation database systems and process servers,
have enabled institutions to improve not only their efficiency,
but also the quality and accuracy of their processes by
increasing their ability to perform reliable validations, controls
and calculations.
Improvements to institution’s front-end services, which
focus on communication with contributors and beneficiaries,
have been mainly based on internet-based e-services.
E-services enable 24/7 access to social security services
with the possibility to carry out inquiries and transactions
even from remote areas and outside national boundaries.
These approaches are transforming the way in which
institutions interact with users, whether they are members
of the social programme, external partners participating in
service delivery or internal staff. In this context, the use of
mobile technologies in social security constitutes a notable
trend, especially in Africa and the Asia-Pacific, where
mobile technologies overcome geographical isolation and
the limited traditional (wired-based) data communications
infrastructure.
From a social security functions (business lines) perspective:
– Improvements in the registration of contributors
and beneficiaries have been mainly based on the
implementation of master data systems, which provide
a unique quality source for core business data. In
addition, internet-based interaction with employers
and employees has enabled improvement in data
administration mechanisms.
– Improvements in contribution collection have been
based, on the one hand, on the implementation of
internet-based data submission mechanisms, which
have enhanced the quality and efficiency of the
reception of contribution-related data. On the other
hand, improvements have also been based on high-
performance validation and calculation processes,
which have enabled institutions to quickly respond to
contributors regarding contribution amounts as well
as errors in the submitted data. In addition, the above-
mentioned improvements in contributors’ registration
have also played a key role in the overall improvement of
contribution collection systems.
– Improvements in benefit calculation and payment have
been based, on the one hand, on high-performance
systems for determining eligibility and calculating benefit
amounts. The above-mentioned improvements in
beneficiaries’ registration have also played a key role by
providing the required quality data. On the other hand,
internet-based systems have enabled decentralization
of payments to sites closer to beneficiaries’ homes,
allowing them to access the involved information.
Availability

In addition to the improvements mentioned in intra-
institutional operations, ICT has enabled the implementation
of inter-institutional social programmes (e.g. Bolsa Familia in
Brazil), through the integration of diverse social protection
instruments that are traditionally fragmented.
The implementation of such high-impact nation-wide
programmes, requiring an intensive usage of ICT, constitutes
a turning point for social security administrations, showing
that institutions can play a unique and critical operational
role in these strategic socio-economic programmes beyond
their traditional schemes of administrative responsibilities. In
turn, they have also showed that mastering ICT constitutes
a strategic success factor for social security institutions as
well as for their leaders.
Furthermore, the extensive application of ICT is transforming
the way in which social security functions are carried out:
– Service delivery is switching from counter-based services
towards citizens’ self-services based on an increasingly
wider usage of internet and mobile devices, which is
further promoting citizens’ empowerment.
– The growing implementation of shared information
resources and operational platforms is enabling the
design of new organizational models based on multi-
actor configurations. Such configurations enable
improvement of operational effectiveness and efficiency
of complex processes managed by several institutions
by unifying operations in a common ICT-based platform,
while keeping the responsibilities and jurisdictions of
participant institutions (e.g. integrated social protection
systems and contribution collection systems in the
Republic of Korea and Uruguay).
Interesting applications are emerging (existing but with
limited experience) for the following:
– Benefit payment and contribution collection through
mobile technologies. Mobile technologies are increasingly
being used to overcome not only geographical
isolation and limited wired-based data communications
infrastructure, but also the high costs of traditional bank
transactions. Open issues include security aspects,
business models involving financial services, instability
and wide heterogeneity of mobile technologies, among
others.
– Automating the operation of international social security
agreements in order to provide effective social security
coverage to a growing number of migrant workers.
Open issues include aspects of security and authenticity,
aspects of data privacy, standardizing operation
processes and data models, among others.
– Fraud detection, both in contribution collection and
benefits, by applying data mining techniques to Big
Data-like resources, not only using data inside institutions
(e.g. records of contributions and benefits) but also
using external ones (e.g. maps, aerial and satellite
imagery, socio-economic statistics). Open issues include
characterizing and validating data reliability, adequacy
of general methods for local contexts and data privacy
aspects.
3. Digital Identity and Social Security
A key point that emerges in all aspects of the ICT
applications expounded above is the efficient delivery of
benefits to social benefit recipients. After all, a social security
system is meant for an individual in particular, which results
in the security of the society in general.
Figure 4: Service Delivery Transformation

Service and benefit delivery transformation – the essence
of e-government transformation – is thus tied to the identity
of the citizen. The first stage is service innovation, where
the government identifies the need for a specific service
and engineers it to meet the specific requirements of all
stakeholders. A key point to note here is that service is the
outcome of the service innovation process that stems from
the need(s) of stakeholders. Hence, the primary objective of
a service is to fulfil the associated need(s) of stakeholders in
an efficient manner.
Each service has a target population. Service delivery aims
to make a service accessible to the target population by
considering the characteristics, capabilities and limitations
of this group. Inclusiveness is one of the key values that
service delivery should always be based on. Another
aspect that governs service delivery is the citizen charter
with service-level agreements (SLAs), which guarantee a
level of service availability and overall quality of the service
experience to citizens.
The end objective of service is fulfilled when the target
population avails itself of the service. This is facilitated by
the service access mechanism. In traditional methods
of service delivery, a service seeker needs to be present
physically at the point of service, which is generally delivered
over the counter (OTC). Here, trust is established between
the stakeholders through visual inspection of the person
and documents. However, this means of establishing
trust cannot be extended to electronic means. One of the
major challenges posed by electronic service delivery is to
establish trust. Since this comes up at the point of service
access, this is considered a last-mile challenge.
The fourth stage of service delivery is issue and problem
resolution. Disputes may arise and, hence, legally valid
evidence of service access and various associated
transactions is required to prove the validity of complaints.
In addition, a history of service access and transactions may
give insight into the behaviour of the overall e-government
system. The above aspect, along with business intelligence
gathered through service analysis and reporting, can
result in continuous improvement of e-government service
delivery. The key enabler for this is the secure and irrefutable
identification of the beneficiary – the citizen.
Figure 5: National Issuance of Digital Identity Credentials
This enablement then drives digital transformation through
secure digital transactions and social benefit delivery. Social
benefits can be managed, administered and delivered using
the digital identity credentials that are held by citizens.
More often than not, the credentials are issued by national
governments, resulting in government-enabled benefit
transactions, delivering services as they accrue rather than
based on personal demand.

4. Challenges
In spite of the very positive results, social security institutions
have to face a number of important challenges concerning
the effective and efficient application of ICT.
On the one hand, implementing new larger systems beyond
the boundaries of traditional desk-based services poses
relevant challenges to institutions, not only regarding
technical aspects but also concerning the management
of the overall ICT-related activities. For example, while
integrating systems and sharing information offer important
advantages, they present collateral issues related to
data privacy and institutions’ ICT security. Moreover, a
systematic implementation of integrated systems involves:
(i) using a common e-government-like interoperability
platform, (ii) standardizing the “core” information on which
the institutions would collaborate, and (iii) clarifying and
managing the “ownership” and quality properties of the
data.
In addition, the quick evolution of products and their
interrelationship can have a negative impact on the stability
of business processes. These elements have led to
concerns about the cost/result balance and have generated
uncertainties regarding better approaches to developing
successful ICT applications.
Furthermore:
– The lack of standardization of business processes
and information models inhibits the usage of common
software packages and the development of an economy
of scale. On the other hand, this situation forces
institutions to either develop business applications from
scratch or to acquire brand-specific software packages.
– Governing and managing larger and inter-institutional
(and increasingly cross-border) projects and systems
require new management frameworks.
– As data become an essential asset on which key
operational and decision-making processes rely,
their reliability and quality constitute, more and more,
fundamental properties. Addressing these issues
systematically requires social-security-oriented data
quality models.
Social security institutions may address these challenges
through a number of approaches, often involving:
– the adoption of advanced technologies, such as
interoperability and mobile and data security, based on
standards and good practices;
– the application of ICT governance and management
practices, which address the overall organization,
implementation and operation of ICT systems;
– the use of common models and ICT-related solutions
based on sectoral standards, which would improve the
cost-effectiveness and reduce the risks of large ICT-
based projects by reusing already-proven solutions and
by increasing the economies of scale of ICT products;
– the use of cloud computing, which could enable
increasing/decreasing the size of ICT-based services
in a flexible way (the so-called “elasticity”), as well as
improve the cost-effectiveness of systems development
and administration by taking advantage of an economy
of scale. On the other hand, a practical implementation
of large-scale secure systems still poses technical and
methodological challenges, which increase risks and
costs, therefore requiring careful analysis of the cost-
effectiveness implications and the related ICT-strategy.

Members of the Global Agenda Council on Social
Security Systems
Chair (2012-2013)
M. Michele Burns, Center Fellow, Stanford Center on Longevity
Chair (2013-2014)
Hans-Horst Konkolewsky, Secretary-General, International Social Security Association (ISSA)
Vice-Chair (2013-2014)
Anne Richards, Chief Investment Officer, Aberdeen Asset Management Plc
Ali M. Al Khouri, Director-General, Emirates Identity Authority (EIDA)
Axel Börsch-Supan, Director, Munich Center for the Economics of Aging (MEA)
Claire Courteille, Director, Equality International Trade Union Confederation (ITUC)
Daisuke Iwase President and Chief Operating Officer, Lifenet Insurance Company
Daniel Balaban, Director, United Nations World Food Programme (WFP)
Daniel M. Hofmann, Adviser to the Chairman, Zurich Insurance Group
Donald P. Kanak, Chairman, Prudential Corporation Asia
Evgeny Gontmakher, Deputy Director, Institute of World Economy and International Relations (IMEMO)
Gail K. Boudreaux, Executive Vice-President, UnitedHealth Group, USA
Katrin Westling Palm, Director-General, Swedish Pensions Agency
Kevin T. Hogan, Chief Executive Officer, AIG Global, Consumer Insurance, American International Group (AIG)
Richard Blewitt, Former Chief Executive Officer, HelpAge International, currently Resident Coordinator and Representative
for Trinidad and Tobago and Suriname, United Nations
Robert Palacios, Senior Pension Economist and Director, Social Protection Department, World Bank
Silvia Stefanoni, Deputy Chief Executive Officer, HelpAge International
Volker Deville, Executive Vice-President, Allianz SE
Yiyong Yang, Vice-President, Senior Research Fellow, Institute of Social Development
Research
Research Analyst
Lisa Ventura, Associate, Global Agenda Councils, World Economic Forum
Council Manager
Jesse McWaters, Project Manager, Financial Services Industries, World Economic Forum
Forum Lead
Giancarlo Bruno, Senior Director, Head, Financial Services Industries, World Economic Forum

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