PCI IT conference 2009

Hurdles to Your Success

Insurance companies use process improvement, technology, and data solutions to effectively operate and create competitive advantagescompetitive advantages

© Blue Slate Solutions 2009

PCI 2009 Information Technology Conference Tucson, AZOctober 4-7, 2009

About Blue Slate Solutions

W i ti ti i• We improve operations: optimize processes, connect disparate systems, introduce relevant technologies, manage data

• Clients include leading Insurance companies d b k h k t i ffi i i

Technology

and brokers who seek to increase efficiencies, simplify systems, lower cost, improve service and retain customers

• Experience across the full spectrum of I i d t f ti d d t t

Solutions

DataProcess

Insurance industry functions and departments –front and back office Project and Change

Management

Shawn Firehock• Managing Director • Led Insurance practice

for major software

Rick Barnett• Founder and CEO• 20 years general

management and business

Mike Farley• Consultant• 12 years of underwriting,

brokerage and agencyfor major software company

• Leads Client Delivery team

gleadership

• Operational Finance leader• Certified Public Accountant

brokerage and agency experience

• Former agency owner


Disruption and challenges facing the industry

• Political – New political environment, regulatory requirements

• Economic – Beyond the obvious financial crisis, the insurance y ,market is increasingly competitive, with significant pressures from a soft market, fraud, catastrophes, shareholder expectations, lower returns on investment income, and high operational and transactional coststransactional costs

• Social – Workforce challenges, shifts in consumer behavior and attitudes that effect buying and servicing

• Technological – Introducing new systems into an aging infrastructure to meet above challenges, new demands for data from reinsurers

Blue Slate helps clients address these issues starting from where are you are today toward demonstrable ROI


toward demonstrable ROI

Some Hurdles We Encounter

1. New Channels for Growth

2. Competitive Environment

3. Data Management

4. Aging Applicationsg g pp


At A Glance

Hurdle 1: New Channels for Growth

Challenges

Our ClientGlobal commercial insurer wanted to open an online channel in theChallenges

• Lower cost competitors beginning to capture brokers and customers

• Administrative costs on the rise

an online channel in the Worker’s Comp Market

• “Legacy” policy issuance system did not have a web channel to meet market opportunity


At A Glance


Our ClientGlobal commercial insurer wanted to open an online channel in the

Approach• Integration with existing policy administration

an online channel in the Worker’s Comp Market

g g p yapplication to extend control for the business unit and get closer to their external agents

• Streamlined business rules for use in new process• Replicated rating engine within workflow• Created rule maintenance layer for business users


At A Glance


Our ClientGlobal commercial insurer wanted to open a breakthrough online

Success!

a breakthrough online channel in the Worker’s Comp Market

SolutionsSuccess! • In production within 100 days• Reduced broker policy issuance process from days

to minutes

• Created platform to capture new business potential

• Leverage Legacy

• Gave business users the ability to change rules in real-time

• Catalyst that fueled revenue growth by over 300%

Investments and Best Practices

• Business Rule Management and gMaintenance





3. Data Management



At A Glance

Hurdle 2: Competitive Environment

Challenges

Our ClientA BI Top 100 broker, needs

to eliminate manual data t t dChallenges

• Iterative manual data entry is expensive and an E&O exposure

• Legacy data migration risks with new technology

entry to grow and profitably serve its clients

g y g gyacquisition

• Managing cost while supporting growth challenges competitive advantage

• Clients were demanding paperless processing and web based connectivity to drive back office efficiency while adding value add services

• Unsure of available solutions in the market• Unsure of available solutions in the market


Hurdle 2: Competitive Environment At A Glance

A h


to eliminate manual data t t dApproach

• Mapped and optimized processes to prepare for technology selectionF ilit t d d t l l ti b d

entry to grow and profitably serve its clients

• Facilitated vendor tool selection process based on client’s requirements, priorities and budget

• Established technology road map to achieve envisioned stateenvisioned state

• Selected technologies to support business process and that produced the best value (ROI)

Next steps…Next steps…• Implementation of selected solution to automate

processes and consolidate data


Hurdle 2: Competitive Environment At A Glance


to eliminate manual data t t dentry to grow and

profitably serve its clients Solutions• Detailed understanding

Success!• Line of business will be able to grow without adding

personnel

gof client environment and unique challenges

• Provided unbiased third party assessment withp

• Employees will be able to spend more time on the high value task of serving customers instead of performing clerical work

party assessment with client success forefront

• Technology Selection Aligned with Business Process Vision Business• Accuracy will be improved – E&O exposure reduced

• Customers will be more tightly coupled with the client

Process Vision, Business Rules and Budget





3. Data Management



At A Glance

Hurdle 3: Data Management

Challenges

Our ClientA Top 3 Global financial

services conglomerate had an 8 terabyteChallenges

• Legacy platform (20+ years) inhibiting progress– Proprietary data format

• Capacity to report to regulators and markets was

had an 8 terabyte legacy data “blob” where information was not visible or actionable

p y p gimpaired

• Growth was constrained -- stability and agility were not reliable

• Perform migration to new platform with no impact on users


At A Glance


Our ClientA Top 3 Global financial

services conglomerate had an 8 terabyte

Approach• In performing as-is system analysis, re-engineered

specifications for new platform

had an 8 terabyte legacy data “blob” where information was not visible or actionable

specifications for new platform– Determine portability, obsolescence and usability of

components• Provide access to the data using Web Services

– Maintain logic while allowing accessibility to new application

• Performance tuning


At A Glance


Our Client, A Top 3 Global financial

services conglomerate had an 8 terabyte

Success!• Decoupled data from system for maximum usage• Data was converted into information available to all

ylegacy data “blob” where information was not visible or actionable

Solutionssystems and for standard analytics and reporting

– 8 Terabytes of transaction data serving 3500 users worldwide and support 1600 concurrent users

• Over $4 million of annual VAX maintenance costs

Solutions• In depth understanding

of existing platform to strategize migrationL d tti d• Over $4 million of annual VAX maintenance costs

were eliminated• Increased stability, speed and efficiency in a

scalable manner

• Leveraged cutting edge webservices technology to maintain business logic while evolving f ti lit

• Provided framework for growth – easy to add other business units

functionality• Provided stable and

scalable framework with increased capability


• Data management expertise




3. Data Management



At A Glance

Hurdle 4: Aging systems

Challenge

Our ClientPremier Regional insurer

needed to integrate its broker centric webChallenge

• Legacy investments were made in “silos”• The systems can’t share intelligence• Each function wants to control their own system

broker centric web portal to the rest of its systems utilizing existing resources that weren’t designed toEach function wants to control their own system,

and can’t step away from the day to day activities to think about longer term solutions

• Opportunity to expand business limited by system

weren t designed to accept it

inflexibility


At A Glance



needed to integrate its b k t i b

Approach• Mapped appropriate ACORD data schema to meet

broker centric web portal to the rest of its systems utilizing existing resources that

’t d i d tclient’s needs• Leveraged a component architecture to leverage

existing investments and create best in class solutions

weren’t designed to accept it

solutions• Built solution in a manner that would allow the

business team to manage the rules


At A Glance


At A Glance


needed to integrate its

Success!

needed to integrate its broker centric web portal to the rest of its systems utilizing existing resources that

• Client established market leading web based agent services

• Client established infrastructure and workflows to integrate existing systems while preparing for their

existing resources that weren’t designed to accept it

SolutionsR t ti fintegrate existing systems while preparing for their

eventual upgrade • Business team can change the rules parameters

with less IT involvement, reducing costs,

• Representation of business, technical and broker needs

• Business Intelligence with less IT involvement, reducing costs, increasing business ownership of their systems, and improving market responsiveness

• Agent perception of web capabilities moved from

and Rules leveraged in architecture with existing systems

• Data Conversion and


“worst” to “one of the best” Aggregation

Winning strategies to transform challenges to opportunities

• Identify and prioritize opportunities, formalize and execute as projects

• Include business and technical leaders for solution• Include business and technical leaders for solution implementation

• Cross-functional teams will succeed with strong ggovernance models

• Evaluate current state and map to desired state• Leveraging existing technology • Optimize processes, use business rules, and

standardize data to drive efficiency and agilitystandardize data to drive efficiency and agility • Ensure any software or hardware introductions are

relevant and appropriate for maximum impact


pp p p

Talk to us about the challenges you face….

Erica Coletti• [email protected]

Chris Garber• [email protected]@

• 518.929.1293g @

• 518.369.4892

Mike Farley• [email protected]• 802.379.1456

Rick Barnett• [email protected]• 518.339.4073

Shawn Firehock• [email protected]• 518.573.6410


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