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Policy Administration & Business...capabilities, business rule standardization, consolidation and...
Transcript of Policy Administration & Business...capabilities, business rule standardization, consolidation and...
IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Policy Administration & Business Intelligence Initiatives: ‘A Match Made in Heaven’Session Number Goes Here in 24pt Arial
Agenda
Sompo Overview
Sompo Policy Administration Project – Part I
• Objectives
• Delivery Plan & Approach
• Successes & Challenges
Sompo Business Intelligence– Part II
• Why a holistic approach
• Improving Business Decisions with Analytics
• Delivering on Information Demand
• BI Architecture & Tools
• Case Study: Information Management
Policy Administration Project
Prep Work
Process
• Evaluate existing assets
• Policy Administration
• Claims Administration
• Billing Administration
• Reinsurance Administration
• Data Warehouse
• Business Intelligence
• Back Office Administration (e.g. STAT reporting, GL etc.)
Program Work
Outcome
• Step 1: Detailed Requirements Assessment to lock in Scope,
Schedule and Financials of project
• Step 2: Phased approach that fit within capabilities of the organization
• Supplement current policy administration system
• Implement a new claims management system
• Replace legacy AS/400 with new system of record
• Implement a new reinsurance and billing administration system
• Supplement current BI capabilities with enhanced data capabilities
Policy
Decisions
Phase 1
WINS
CAPS
Freedom
General Ledger
SJASIX
Pass 2 Existing PD Lines
WINS Policy
Entry
WINS Billing
Reinsurance
WINS Claim
Entry
Existing Lines
Reports
Vision
Manual Billing
This is not a feed
CLRS
(Loss Account
Groups)
Policy
Tracking
Claims
Tracking
RLA
Reports
COP, OM, UM,
HPR, AAIS IM Pass 2
Claims
DecisionsPoliciesClaims
RSG
(Broadspire /
Crawford)
WCPOLS
Umbrella
Personal
Umbrella
Personal
Home
Personal
Auto
Global
Product
HPR
AAIS COPOcean
Marine
Excess
Property
Boiler
Mono Line
Excess
WC
Mass Auto
CAR
Manual Lines
Deductible Recovery
Estimated
Recoveries
DBSYSTEM
AS400/Access
A/RPrint
Agency
Statements
Print Ocean
Marine P&L
Check
Printing
(Claims)
Broadspire
Takeover
Claims
Broadspire
Detailed
Policy
Broadspire
Basic Policy
ISO
UNITSTAT1099'sISODMV ISO
Mass
Auto
CAR
Kentucky
Worker's
Comp
CA CSS
Submission
Stars -
YKK
Stars -
INX
ISO Claim
Search
ISO
WCPOLS
ISO
WCTRP
(NY)
AuSum
(Premium
Audit)
Tokyo
Data
Nissan
Loss File
Policy
Tracking
Retiring End State Insurity End State ClientLEGEND: Retired 3rd Party FeedReporting Agency /
Regulatory
IEV Claims
Policies
Policy ACTDTE
Claim ACTDTE
Phase I
Phased Approach
Phase – WINS used for Reins/Billing/DR/DR Estimates
Policy
Decisions
IEV
CAPS
1099'sISO
UNITSTAT
Freedom
General LedgerSIX
Policy ACORD XML
Vision
Manual BillingCLRS
(Loss Account
Groups)
Policy
Tracking
Claims
Tracking
RSG
(Broadspire/
Crawford)
ISODMV ISOMass Auto
CAR
Kentucky
Worker's
Comp
CA CSS
Submission
Stars -
YKKStars - INX
ISO Claim
Search
ISO
WCPOLS
ISO
WCTRP
(NY)
AuSum
(Premium
Audit)
Tokyo
Data
Nissan
Loss File
RLA
Reports
Print Agency
Statements
Print Ocean
Marine P&L
Check Printing
(Claims)
Claims
DecisionsPolicies
Claims
w DR Recoveries
New Check
Print Solution
TBD
TBD
Boiler
Mono Line
WCPOLS
Broadspire
Takeover
Claims
Broadspire
Detailed
Policy
Broadspire
Basic Policy
A/R
Earned Premium
Calculations
End State Insurity End State ClientLEGEND: Retired 3rd Party FeedReporting Agency /
Regulatory
Umbrella
Personal
Umbrella
Personal
Home
Personal
Auto
Global
Product
HPR
AAIS COPOcean
Marine
Excess
Property
Excess
WC
Manual Lines
Mass Auto
CAR
WINS
Existing PD Lines
WINS Policy Entry
WINS Billing
Reinsurance
WINS Claim
Entry
Reports
Deductible
RecoveryEstimated
Recoveries
DBSYSTEM
WINS / MS Access
Boiler
Mono Line
Ded Recoveries
Billing Information
Reinsurance Information
DR Estimates
Reporting
Decisions
WINS Report
Rewrite
Reins / Billing / DR / DR
Estimates
Remaining in WINS
Phased Approach
Phase – WINS used for Reins/Billing/DR/DR Estimates
Policy
Decisions
IEV
CAPS
1099'sISO
UNITSTAT
Freedom
General LedgerSIX
Policy ACORD XML
Vision
Manual BillingCLRS
(Loss Account
Groups)
Policy
Tracking
Claims
Tracking
RSG
(Broadspire/
Crawford)
ISODMV ISOMass Auto
CAR
Kentucky
Worker's
Comp
CA CSS
Submission
Stars -
YKKStars - INX
ISO Claim
Search
ISO
WCPOLS
ISO
WCTRP
(NY)
AuSum
(Premium
Audit)
Tokyo
Data
Nissan
Loss File
RLA
Reports
Print Agency
Statements
Print Ocean
Marine P&LCheck Printing
(Claims)
Claims
DecisionsPolicies
Claims
w DR Recoveries
New Check
Print Solution
TBD
TBD
Boiler
Mono Line
WCPOLS
Broadspire
Takeover
Claims
Broadspire
Detailed
Policy
Broadspire
Basic Policy
A/R
Earned Premium
Calculations
End State Insurity End State ClientLEGEND: Retired 3rd Party FeedReporting Agency /
Regulatory
Umbrella
Personal
Umbrella
Personal
Home
Personal
Auto
Global
Product
HPR
AAIS COPOcean
Marine
Excess
Property
Excess
WC
Manual Lines
Mass Auto
CAR
WINS
Existing PD Lines
WINS Policy Entry
WINS Billing
Reinsurance
WINS Claim
Entry
Reports
Deductible
RecoveryEstimated
Recoveries
DBSYSTEM
WINS / MS Access
Boiler
Mono Line
Ded Recoveries
Billing Information
Reinsurance Information
DR Estimates
Reporting
Decisions
WINS Report
Rewrite
Reins / Billing / DR / DR
Estimates
Remaining in WINS
End State
Policy
Decisions
End State
IEV
CAPS
1099'sISO
UNITSTAT
Freedom
General Ledger
(SJA)
SIX
Policy ACORD XML
CLRS
(Loss Account
Groups)
Policy
Tracking
Billing & Deductible
Recovery (TBD)
& DR Estimates
Billing
RSG
(Broadspire /
Crawford)
ISODMV ISOMass Auto
CAR
Kentucky
Worker's
Comp
CA CSS
Submission
Stars -
YKKStars - INX
ISO Claim
Search
ISO
WCPOLS
ISO
WCTRP
(NY)
AuSum
(Premium
Audit)
Tokyo
Data
Nissan
Loss File
Claims
RLA
Reports
Claims
DecisionsPolicies
Claims
WINS Report
Rewrite
New Check
Print Solution
TBD
New
Reinsurance
Solution (TBD)
Direct Premium & Losses
Ceded Premium & Losses
Data Element
Expansion
Personal
Umbrella
Personal
Home
Personal
Auto
Global
Product
Boiler
Mono Line
Excess
WC
Manual Lines
Mass Auto
CAR
Claims Financial
Transactional Activity
WCPOLS
Broadspire
Takeover
Claims
Broadspire
Detailed
Policy
Broadspire
Basic Policy Earned Premium
Calculations
Policy
Tracking
End State Insurity End State ClientLEGEND: 3rd Party FeedReporting Agency /
Regulatory
What has worked well
Structured approach
• Accountability
• Direct Lines
• Organizational challenges
Dedicated resources
• People have day jobs
Use SME’s when necessary, but partner with dedicated
resources
What has been challenging
Business objectives change over a long period of time
Resources change over a long period of time
What’s left
Data warehouse and back office capabilities go live in
October 2014
• Allows us to supplement BI capabilities with enhanced data
• Enhanced loss reporting
• Increased decision making capabilities
• Utilize current assets
Business Intelligence
Why look at this holistically?
For many P&C insurers, the goal has been to create more
competitive, flexible and scalable operational systems.
While the bottom-line benefits from these improvements are
being realized, the benefits have often been limited by a
siloed approach; that is, too many insurers don’t fully
integrate processes or data flows for optimal process
efficiency and effectiveness.
Why look at this holistically? Cont.
Ability to leverage an integrated technology stack and avoid
being compartmentalized. Understanding where to place
big bets and where not to, will make a huge difference in
business outcomes. Further, the integration of PAS/BI
projects as part of broad-based transformation, “turbo-
charge” the business case: the returns on investments for
both rise dramatically.
More empowered ‘customers’ are also a force for a holistic
transformation. Accustomed to using sophisticated banking
and retail websites and transacting via smartphones,
today’s stakeholder now expects similarly streamlined
processes, integrated data streams and personalized
information
Val
ue
Difficulty2013 - Gartner
Diagnostic
Analytics
Predictive
Analytics
Prescriptive
Analytics
Descriptive
Analytics
What happened?
Why did it happen?
What will happen?
How can we
make it happen?
Business Analytics Progression
Improving Business Decisions with Analytics
Financial Information Operational Insights Integrated Information
/ Actionable Intelligence
Diagnostic
Analytics
Predictive
Analytics
Descriptive
Analytics
Hindsight Insight Foresight
Information Optimization
Prescriptive
Analytics
EPM Tools
Basic Business Intelligence Tools
Advanced Visual Analysis
Advanced Business Intelligence
How To Get Started: Analytics Maturity Model & Architecture Framework
Progressing on the Analytics Maturity curve is not just
about tools and technology
Leveraging available technology effectively requires a
comprehensive framework
Strategy & Culture
Skills & Techniques
Process & Tools
Data Sources & Quality
Delivering on Information Demand
Determining which tools and technologies are most appropriate to address an
organization’s information needs is equally as important as understanding the
information itself.
Information
Demand
Business
Intelligence
Tools
Value
Reporting needs
Regulatory Requirements
Analytics
Dashboards
Interactive
Reporting
We recommend leveraging a more robust architecture to meet end user requirements
Data Sources
Data Warehouse
Analytic
Models
Pre
senta
tion
Anal
yti
cD
ata
Inte
gra
tio
nS
ourc
e
Sompo currently has elements of the standard architecture
Presentation layer enables distributed web based
input and reporting and analysis capabilities from
high quality production reports to ad hoc analysis
Analytical layer provides advanced modeling
capabilities, business rule standardization,
consolidation and aggregation of data.
Data mart layer centralizes the data, hierarchies, and
business transformations. Common business
definitions and data elements established.
Source layer contains systems and applications which
are structured to support high-volume transactional
processing.
Executive Summary
$0
$200
$400
$600
$800
$1,000
$1,200
Thousands
Funded Proposals
Total Solicitor Goals
% to Goal: 57%
FY2010 - Year-To-Date Funded Proposals
Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask
Data as of: May 31 2010
Funded
Proposals
Proposal
ProjectionsVisits Entry DaysSummary
Portfolio
Activity
Proposal Projection Dollars
16 15 16
0
5
10
15
20
25
FY10-Mar FY10-Apr FY10-May
Visits
Goal
0
50
100
150
200
250w/o Open or Active Proposals
With Open Proposals
With Active Asks
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Thousa
nds
No Ask Made as Projected
Open Proposals
Active Asks
Received Amount
% Portfolio with
Active Asks: 14%
DATA
INSIGHT
KNOWLEDGE
ADVANTAGE
Data Warehouse / Integration Layer: Consolidate data into one Data Warehouse with improved data quality processes while structuring to support cubes
Data Sources
Data Warehouse
Analytic
Models
Pre
sen
tati
on
Anal
yti
cD
ata
Inte
gra
tio
nS
ourc
e
Executive Summary
$0
$200
$400
$600
$800
$1,000
$1,200
Thousands
Funded Proposals
Total Solicitor Goals
% to Goal: 57%
FY2010 - Year-To-Date Funded Proposals
Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask
Data as of: May 31 2010
Funded
Proposals
Proposal
ProjectionsVisits Entry DaysSummary
Portfolio
Activity
Proposal Projection Dollars
16 15 16
0
5
10
15
20
25
FY10-Mar FY10-Apr FY10-May
Visits
Goal
0
50
100
150
200
250w/o Open or Active Proposals
With Open Proposals
With Active Asks
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Thousa
nds
No Ask Made as Projected
Open Proposals
Active Asks
Received Amount
% Portfolio with
Active Asks: 14%
Information Management ArchitectureData structured to support:
Operational / Transactional Reporting
End-User Query
Analytic cubes
Data is extracted from a data source (typically a business
application), transformed using a series of transformation
routines and then loaded into the data warehouse once
data is in the target format desired
Analytic Layer: Establish relationships in data while maintain flexibility in reporting
Data Sources
Data Warehouse
Analytic
Models
Pre
senta
tion
An
alyti
cD
ata
Inte
gra
tio
nS
ourc
e
Executive Summary
$0
$200
$400
$600
$800
$1,000
$1,200
Thousands
Funded Proposals
Total Solicitor Goals
% to Goal: 57%
FY2010 - Year-To-Date Funded Proposals
Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask
Data as of: May 31 2010
Funded
Proposals
Proposal
ProjectionsVisits Entry DaysSummary
Portfolio
Activity
Proposal Projection Dollars
16 15 16
0
5
10
15
20
25
FY10-Mar FY10-Apr FY10-May
Visits
Goal
0
50
100
150
200
250w/o Open or Active Proposals
With Open Proposals
With Active Asks
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Thousa
nds
No Ask Made as Projected
Open Proposals
Active Asks
Received Amount
% Portfolio with
Active Asks: 14%
Information Management Architecture
Cubes within the Analytic Layer will provide a unified view to users.
“Need to aggregate & establish
relationships in the data” Common Business View of
the Data (UDM)
Self Service Model with
pre-aggregated data
Dimensions & Hierarchies
to support analysis
Consistently defined
metrics & KPIs
Guaranteed Correct
Results
Improved Database
Performance through
proactive cache
Presentation Layer: Components used to expose data to end-users
Data Sources
Data Warehouse
Analytic
Models
Pre
senta
tion
An
alyti
cD
ata
Inte
gra
tio
nS
ourc
e
Executive Summary
$0
$200
$400
$600
$800
$1,000
$1,200
Thousands
Funded Proposals
Total Solicitor Goals
% to Goal: 57%
FY2010 - Year-To-Date Funded Proposals
Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask
Data as of: May 31 2010
Funded
Proposals
Proposal
ProjectionsVisits Entry DaysSummary
Portfolio
Activity
Proposal Projection Dollars
16 15 16
0
5
10
15
20
25
FY10-Mar FY10-Apr FY10-May
Visits
Goal
0
50
100
150
200
250w/o Open or Active Proposals
With Open Proposals
With Active Asks
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
Thousa
nds
No Ask Made as Projected
Open Proposals
Active Asks
Received Amount
% Portfolio with
Active Asks: 14%
Information Management Architecture
Multiple possibilities for consumption of information.
Customization for
data analysis and
consumption
Quickly and easily
navigate
information you
need
Drill in place for
further analysis
Modify calculations
Interact with results
Share Data
Reporting & Dashboarding
Rich, Enterprise Reporting Platform (static and
interactive)
Multiple data sources with multiple delivery
options
Scalable, manageable and embeddable Web
Services architecture
Advanced Authoring Tools
End-user, Ad Hoc Reporting
Reporting &
Dashboard
Tools
• Microsoft SSRS
• Hyperion Financial Reports
• Hyperion Web Analysis
• Oracle BI Dashboards &
Publisher
• Cognos Report Studio
• Business Objects Xcelsius
• Business Objects Crystal
Reports
Case Study – Aligning Analytic Strategy to Support PAS transformation
Business Challenge
• Business Leaders needed to identify and prioritize
information demand and BI requirements to support
demand creation and demand fulfillment on a global scale
• IT required a defined architecture and resource model to
support global use of Business Intelligence infrastructures
to support the proposed business objectives
• “Clients’ craved dashboards and metrics to confidently
review and measure the health of the business from
anywhere
Case Study – Aligning Analytic Strategy to Support PAS transformation
Solution
• Baseline current state information needs, existing data sources, and future plans / strategy to
implement an enterprise information architecture
• Assess the capabilities and readiness of the organization
• Conduct high-level gap analysis between current and future states to identify improvement
• Mobilize key stakeholders with a prioritized roadmap providing a phased plan with key milestones,
deliverables, resources, and costs to execute and deliver key information with analytics tools
Projected Impact
• Align organization with clear understanding of program benefits prior to investing in software or
implementation costs
• Well-defined foundational systems and technology to support and scale the information and application
architecture
• Standardize information delivery, transforming data assets into corporate information to make critical
business decisions
• Phased deployment roadmap for Reporting & Analytics, dashboards and metrics
Next Steps To Get Started on Your Initiative
All the necessary tools are available to you today – you need to take the next step:
Determine what end of the spectrum you are on today & where you need to be
• Descriptive Analytics
• Diagnostic Analytics
• Predictive Analytics
• Prescriptive Analytics
Assess your current state
• Strategy & Culture
• Skills & Techniques
• Processes & Tools
• Data Sources & Quality
Establish a roadmap to fill in the gaps and take your Analytics Maturity to the next level
Conclusion
Due to the critical role of PAS & BI in insurance, any effort to
transform the organization will require considerable
investment, commitment and discipline. But the business case
for transformation is real, as evidenced by the significant
investments being made by the P&C industry and by the
results being realized—especially those that embrace
advanced BI and analytics capabilities as part of their
transformation initiatives.
Whether an organization is at the beginning of a transformation
process or in the midst of a multi-year program, one thing is
clear: those companies taking a holistic view are not fully
leveraging their investments and risk being left behind by their
competitors in the marketplace
Thank you