Case Study: Bringing Operational Efficiency and Business Intelligence to Insurance

Presented by Ike Kavas, Founder & CEO at Ephesoft and Eric Howse, Enterprise Sales Director at Zia Consulting

The Data Challenge80-90% OF DATA IS UNSTRUCTURED, AND THEREFORE IT CAN’T

BE EASILY ACCESSED, SEARCHED OR USED.

• IDC reports that data is growing at a 10X rate per year and by 2025, the global datasphere will have 163 ZB of data worldwide (IDC Directions 2019)

• Companies spent $5.8B on data entry keyer jobs in the US and $134B spent on all types of data entry & information processing jobs (US Bureau of Labor Statistics report, 2017)

Tech Trends & Market InfluencesDeloitte Report: 2019 Insurance Outlook

A possible 2020 recession could damper insurer growth (you’ll need to do more with less = automation)

Cloud: 7 out of 10 insurers are using some form of cloud technology in their business today

• Cost-savings, speed, flexibility and scalability

• CIOs are under pressure to deliver digital capabilities faster

• Carriers have an opportunity to be part of an ecosystem of tech partners to gain a competitive edge by drawing timely insights from data in a cost-effective manner.

The Story of Digital Transformation• Paper and data growth challenges

• Typical insurance triggers: lots of documents and manual data entry processes

• Use cases across insurance organizations:

– Claims and supporting documents, mailroom, billing, invoicing, HR files, records, archives, customer onboarding

About Protective Insurance• Founded in 1930 and based in Carmel, Indiana

• Serves as the publicly-traded holding company for several property-casualty insurance subsidiaries including Protective Insurance Company, Sagamore Insurance and Protective Specialty Insurance Company Specializes in providing insurance for the transportation industry

• Licensed in all 50 states, the District of Columbia, Puerto Rico and all Canadian provinces to provide comprehensive insurance programs to trucking fleets, motorcoach operations and limousine services

• Products are backed by a dedicated Loss Prevention & Safety Services Team, experienced claims management and superior customer service

• FY2018 Revenues were $483M

The Problems

• Needed a technology refresh

– 6 silos for each application in policy, claims and admin

• 10 million claims need to be converted into usable and accessible data

• Mailroom was a bottleneck of information

Previous Mail Process

Mail delivered to mailroom

Mail sorted Mail delivered to departments

Mail sorted bydepartments

Printed Printed copy used Digital copy stored in database

Printed copy scanned back into database

Process previously took 12-24 business hours

Automation v1.0: Mistakes

• Limited scope of project: IT focused initiative

• Picked the wrong vendor: end result was a 90% custom project, not the 10% custom that they were hoping for

• Low adoption of solution

• CIO was fired

Automation 2.0: Migrating 10M Documents

• Current/old process took 3 seconds for 1 page

– At this rate, it would take 180M seconds or 50,000 hours or 5.7 years

• Actual time took 7 days:

– New process: 3 seconds for 99 pages

• Technology used:

Ephesoft + Alfresco + Snowbound + OPEX

• Servers: 12 cores

Mailroom Modernization

Mail delivered to mailroom

Mail sorted Mail scanned Saved into Alfresco

Delivered to desktop

Process now takes 15 minutes

Results

10 million documents in 7 days;~1.43 million documents per day= Fast, efficient processing

From 2 days to process mail to 15 minutes;99% process improvement

How it Happened

Eliminated manual review of every document

Replaced “print to rescan” with email capture

Intelligent routing to the

correct adjustor

Expedited exception

handling when claim number

is missing

Capture Process

Protective Insurance Results

Rescue project

using Alfresco +

Ephesoft

Migrated

10 million

documents

in seven days

Reduced mailroom

processing time

from

two days to 15

minutes

Phased

migration of

claims library to

Alfresco

Consolidated

numerous

systems

into one

Strong user

adoption by

enabling them to

work in a

native

environment

Delivery of

electronic

documents rather

than millions of

pieces of paper

Learning from the Mistakes• Poised the project as a business initiative

• Picked the right vendor:

– completed a health check, business process assessment, phased implementation and rollout

• High adoption of solution: involved multiple teams, including executives, which resulted in high involvement

• Be open to change: “Change is a way of life”

• Lesson learned: processing and addressing claims faster saved Protective money

• Going paperless with a front-end data capture process to reduce the 300,000 printed materials generated each week

• Centralizing all content

• Implementing a records management solution

• Expand solution to other departments

Upcoming Initiatives

Questions? Thank you!Visit Ephesoft and Zia Consulting at Booth #700

ephesoft.com ziaconsulting.com