Andy Jones Associate Partner 09 October 2008

© 2008 CSC Computer Sciences Limited. All rights reserved.

Workshop 2Supply Chain Management

Ensuring effective supply chain management to reduce market fragmentation

Andy Jones

Associate Partner

09 October 2008

© 2008 CSC Computer Sciences Limited. All rights reserved. 2

Workshop - Proposed Agenda

1.Introductions

2.Workshop objectives

3.Supply chain – how effective is it?• Interactive discussion around challenges and issues

4.Supply Chain – potential solutions• Interactive discussion around solutions

5.Greater collaboration – IT consumerisation and social networking software

6.Conclusions and Summary


Introductions


Andy Jones - Introduction

• Over 20 years experience working in general insurance and consulting firms within financial services markets

• Held senior management positions at Royal & SunAlliance, FirstAssist, youatwork Ltd and GHL Insurance Services (Zenith and Link Insurance)

• Operations, IT and Change Management positions

• Worked as a consultant at Impact Plus (now Hitachi Consulting) – independent consulting firm

• Key area of expertise is Operational Transformation – helping companies to ‘operationalise’ their business strategy through defining new operating models, implementing changes and realising benefits

• Joined CSC Financial Services EMEA Consulting Group in April 2008


Claims Supply Chain

Questions

• Can a procurement centric focus on the claims supply chain lead to afragmented customer service?

• Will greater collaboration in the claims supply chain help to reduce claimscosts and improve customer service?

• Is the claims supply chain as effective as it could be?


Workshop Objectives


Objectives

• To explore the effectiveness of the supply chain

• Why is it not effective as it could be – what are the market drivers?

• Is it fragmented and if so what are the consequences?

• What are the key challenges that everyone is facing?

• What are the potential solutions we should be looking at to improve effectiveness and reduce fragmentation?

• How can we reduce overall claims costs

• How can we improve customer service?


Supply Chain – how effective is it?


Supply Chain - end to end claim process is complex

Salvage Supplier

Vehiclerecovery

CallCentre

FNOL

Claimant

Verification

PolicyCover

Contents

ApprovedRepairer

ApprovedRepairer

Repairer

Assignment

Inspection

Estimate

Reserve

Image

ExpertEstimating

System

Fulfillment

Investigation

ThirdParty

MedicalReport

BodilyInjury

Liability

Negligence

Invoices

Payee

LegalManagement

Witness

Co-insurance

PaymentMechanism

Accounting

Re-insurance

Recovery

Recoveree

GeneralLedger

Reports

ClaimsFinalisation

MIS

PropertyDamage

Driver

Workflow

LossAdjuster

Procurement

Fraud

Materials

Litigation

Statement

DocumentManagement

PrivateMotor

ApprovedSupplier

Negotiation

Catastrophe

Payment

Renewal

CaseManagement

Settlement

Approved Supplier

Approved Supplier

FNOLFNOL

WitnessWitness

AssignmentAssignment

DriverDriver

SupplierSupplier

InspectionInspection

SalvageSalvage

Third Parties

Third Parties

ThirdParty

ThirdParty

SolicitorSolicitor

Medical Report

Medical Report

RecoveryRecovery

ApprovedRepairer

ApprovedRepairer

Claims processClaims processClaims processClaims processEvent Closure

FNOLClaimdetails

Statusenquiry

Offer

Coverageverification

Assessment Negotiation Settlement

Salvage &subrogation

Disputeresolution

Approved Repairer

Approved Repairer

LossAdjustor

LossAdjustor

InsuredInsured


Supply Chain - Numerous Third Parties / Multiple Touch Points


Creating the right balance – administration and indemnity costs

• Administration costs

– handling costs – management, negotiators, clerical

– audit, inspection and loss adjusting fees

Managing the supply chain effectively is essential to creating the right balance

• Indemnity costs

– settlement amounts

– subrogation, salvage and recoveries

Supply Chain Costs


Supply Chain – Challenges and Issues

• Outsourcing (delegated authority, third party administrators, on-shore, offshore etc) leads to increased hand-offs and potentially reduces the customer experience

• Referral fees for credit hire, bodily injury claims, repair and replace networks

• Distributors (Brokers and Intermediaries) are often the first point of contact before hand-off to the Insurer

• Procurement centric models can reduce costs at points in the supply chain but is the value provided and customer service optimised?

• Third parties promoting making injury claims and potential litigation


Supply Chain – Potential Solutions


Supply Chain – Potential Solutions

• Greater collaboration between parties to change outcomes within the supply chain – reduce cycle times and costs, improve service

• On-line claims enquiry and tracking for the claimant

• Self service claims - on-line tools for the claimant to manage their claim

• On-line delivery of goods and services – using eBay, Amazon, PayPal, for example

• Automation of processes between suppliers to reduce hand-offs and opportunities for inconsistency and mistakes

Is there an opportunity to do what Apple did to the music industry – a game changing approach?


Greater CollaborationIT Consumerisation and

Social Networking Software


The origins of IT Consumerisation

Top-down Innovation

1964-2000Top-down Innovation

1964-2000

Bottom-up Innovation

1980-2010Bottom-up Innovation

1980-2010

• Military R&D

• Business Applications

• Consumers and Small Business Usage

Mainframes,Displays, Storage Networks, Software

• Military Applications

• Business Usage

• Consumer R&D

PCs, PDAs, Phones, CDs, Cameras, Video, Semiconductors, Broadband, Wireless, etc


9,659,276 Users Online

Consumerisation today

Do your employees have better IT at home than at work?


An emerging public infrastructure

Advertising

Used market

E-commerce

Accounting/payroll

Hosting/Software

Support

Collaboration

Voice & mobility

Email & IM – Gmail, Yahoo!

– Wi-Fi, Skype

– Webex, MSN, Google Mashup Editor

– Geek Squad, Best Buy

– Amazon, open source

– Intuit

– Salesforce.com, Employease

– Amazon, PayPal, credit cards

– eBay

– Google, Yahoo!, Microsoft

Public Infrastructure

CRM/HR


Consumerisation as a bottom-up process

Consumers

Small business

Mid-size

Large

Time

Utility-StylePublic

Infrastructure


The great transition, 2000-2020?

100%IT

Usage

2000 2020

Private Infrastructure –

One-to-One

PublicInfrastructure --One-to-Many ProprietarySocial Networking

Software

Open

IT Consumerisation has led to a growth in Social Networking Software that can support greater collaboration


What is Social Networking Software?

Software that helps people find, and collaborate with other people.


Build social networking software functionality into our business processes

How can we use Social Networking Software?

We want to enable people to find each other...


....to collaborate with each other, all within the “flow” of their normal tasks.

Benefits – less friction and lower co-ordination costs

How can we use Social Networking Software?


Example

Contacts an Expert to get guidance and

advice

Potential to reduce • cycle times• claims costs

Progress the claim to the next stage

Claims Negotiator suspects fraud, not sure how to

handle

Future Model?

Current ModelAsk supervisor or creates activity in internal workflow

system

Telephone call, letter or email

Receives advice and makes

decision

Telephone call, letter or email

Potential time delay

Potentially multiple contacts


Informationand

InformationTechnology

BusinessProcesses

ManagementSystems

Jobs/Skills/Structure

Values andBeliefs

• Clear performance measures and monitoring

• Integrated employee reward and incentives

• Clear performance measures and monitoring

• Integrated employee reward and incentives

• A collaborative way of working

• Customer centric operating model

• A collaborative way of working

• Customer centric operating model

• Redefine processes to reduce cycle times

• Embed the use of social networking software into processes

• Redefine processes to reduce cycle times

• Embed the use of social networking software into processes

• Job role definitions that encourage more collaborative working

• Use of IT ‘social networking’ IT skills in the workplace

• Job role definitions that encourage more collaborative working

• Use of IT ‘social networking’ IT skills in the workplace

• Instant messaging

• Blogs

• Wikis

• Mash-ups etc

• Instant messaging

• Blogs

• Wikis

• Mash-ups etc

What does this mean for the way we currently work?

Need to transform current operating models


Conclusions and Summary


Conclusions

• Collaboration

• Social network software

• Procurement centric models

• Customer service

• On-line claims enquiry and tracking

• Self servicing claims

• Cycle times


Summary – Workshop objectives

• To explore the effectiveness of the supply chain

• Why is it not effective as it could be – what are the market drivers?

• Is it fragmented and if so what are the consequences?

• What are the key challenges that everyone is facing?

• What are the potential solutions we should be looking at to improve effectiveness and reduce fragmentation?

• How can we reduce overall claims costs

• How can we improve customer service?

Thank You


End

Date post:	17-Jan-2016
Category:	Documents
Upload:	ivan
View:	28 times
Download:	0 times

Andy Jones Associate Partner 09 October 2008

Documents