1

InstaClaim™ - Death Claim in 1 Day

Because we care..

*Trademark applied for

We, the team, make it happen….

Max Life Insurance

Acquire New Bank Distributor

Max Life Overview

Founded in 2000

210 branch offices spread across India

Drive Protection Sales Grow Proprietary ChannelService Excellence

/Customer Experience Cost

Optimization

Talent Management

1

Revenue INR 12,937 Cr

Profit Before Tax INR 768 Cr

Asset under Management INR 44,370 Cr

Customers 39.12 lakh

2

Max Life Insurance

Max Quality Improvement System

Lean Six Sigma / MAXimize QualityStandardized Methodology

For Continuous Improvement

Reward &Recognition

Quality And Service DeliveryLinked To Career Progression

Standard Metrics

MQS SCORECARDCustomer, People,Process, Finance

Service Excellence

SEVA

StandardizedBest PracticesLeadership, Planning, Customers, Measures,Employees. Processes

MAX Performance Excellence Framework (MPEF)

Communications

An

nu

al Assessm

ents

Cycles o

f Imp

rovem

ent

Qu

alit

y an

d S

ervi

ce E

xcel

len

ce

Co

un

cil

Gu

idan

ce &

Dir

ecti

on

Innovation

2

Project and Team SelectionSection 1

1.1.0 Understanding the Context for project selection1.2.0 Project Selection Process1.3.0 Team Selection and Preparation

4Max Life Insurance

3

Max Life Insurance

Understanding the Context of Project Selection1.1.0

5

When life comes to an abrupt halt, we are there for you

A Claim is a moment of truth

for a life Insurance company – it’s Raison d'être

Understanding the Context for project selection

Claims is one of the key driver for protection sales of the company

Premium

Claims Experience

Plan Feature

Advertising/Market Campaigns

1.1.0

6Max Life Insurance

Key drivers for protection sales

4

Project Se lect ion Committee

• Chief Operations Officer

• Chief Technology Officer

• Chief People Officer

• Chief Financial Officer

• Chief Distribution Officer

• Head Innovation and Quality

• Master Black Belt

Executive Management Quality Department

• The rigorous application of the project selection process

• In alignment with Strategic Priorities

• The promotion of continuous improvement

• Allocation of resources for project deployment

Responsible for

Service Excellence & Customer Experience

Cost optimization

Acquire new bank distributor

Drive protection sales

Talent Management

Grow Proprietary Channel

Strategic Priorities

De

cid

ing

fa

cto

rs

Understanding the Context for project selectionWho was responsible for selecting the project? (Q1) 1.1.1

7Max Life Insurance

Max Life Insurance 8

Customer Loyalty

Renewal IncomeCollections

Customer ReferralsNew Business

36% Policy Purchase

13% Customer service

3% Communication

1% Premium Payment

27% Product / Policies

9% Agent / Advisor

1% AdvertisingCustomer ExperienceSatisfaction Scores

37%Others

63% Operations

Customer RetentionPersistency

10% Claims

Company’s Measure of Success (MOS)

What background information of the company or those who selected the project is needed to better understand the context of the project? (Q2 – 1/3) 1.1.1

5

Max Life Insurance

What background information of the company or those who selected the project is needed to better understand the context of the project? (Q2 – 2/3) 1.1.1

9

1.1.0

Helpfulness of executive

Ease of completing the claims form

Claim Communications Turn Around Time

Helpfulness of

executive

32%

Turn Around Time

68%

Factors driving customer satisfaction for Claims

Key Attributes to drive customer satisfaction for Claims Satisfaction Top Box = Excellent

Emotion Top Box = Very Happy

Max Life Insurance

What background information of the company or those who selected the project is needed to better understand the context of the project? (Q2 – 3/3)1.1.1

10

“Why can’t the company complete my request in 2-3

day’s time??”

“Your company should take less

time for my Claim Settlement “

“10 Days for Claims is too much in today’s age”

Ethnography –Discover latent needs of the customers and to provide a differentiator

▪ Top underserved OEs

• Maximize the likelihoodof acceptance of myclaim request

• Maximize my awarenessof requirements for theclaim process

• Minimize time requiredto receive claim amount

• Minimize my effort inlocating branch forsubmission of claimdocuments

6

• Customer Voice through Loyalty, Satisfaction & Ethnography

• On time Claims processing met% age trends.

• Customer complaints related to delay in claim approval

• Voice of Business to create a differentiator as USP

• Reviewed the information shared by claims team

• Identified the opportunity area to improve

• Evaluated the gaps in stated measure

• Identified project sponsor & champion

Input InformationProject Selection

committee (CXOs)

Quality Department

1.1.1 (2/2)

1.1.1 (1/2)

Project Selection process - How was the opportunity brought to the attention of the project identification group ? (Q1)

Sources of Information :-• Strategic Plan• Voice of Process• Voice of Customer

Data:-• Strategic goals• KPIs from Performance Scorecards• Customer Satisfaction

11Max Life Insurance

1.2.1

Max Life Insurance

What was the opportunity? (Process Improvement)? (2/3) 1.2.1

KPI Current Target Type Of Impact Degree Of Impact

On time processing in met %age

Customer Satisfaction (Top Box Ratings)

Customer Queries

40%

Average 56 per month

50%

10 % Reduction

Improve in customer experience to lead better customer satisfaction top box ratings

No of Claim delay related queries shall reduce

High Impact– Affect strategic priority by more than 2%

Medium Impact – Affect strategic priority by 1 to 2 %

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31 % 95 % (Aspiration) Improve in Claim Turn Around Time to lead better customer experience

Waiting

Claim Evaluation @HO

Acknowledgement & discrepancy resolution

Claim sent to HOClaim

Approval

Walks in to our branch Claim Payment

Processing @ Finance

Dispatch

Waiting Waiting

Claims Intimation from Branch Office Claims Processing @ HO Claims Payment @ Finance

Opportunity Opportunity Opportunity

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Max Life Insurance

What area of the organization had the opportunity? (3/3)1.2.1

Impact on project OpportunityProcess

• Claim Intimation process

• Claims Processing at HO

• Finance

• Claim intimation from branch office to

Home Office taking time

• Time taken during Claims Processing

• Finance processing taking time

H

M

H

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• Technology • System design causing delay • System deficiency due to legacy issues H

Product research & design

Customer Acquisition

Policy Issuance &

Underwriting

Policy Servicing

Claim Management

1) ProductDevelopment

5) Marketing Research

10) Underwriting13) Policy

alterations19) Survival

Benefits payout

2) Risk Valuation6) Distribution Management

11) Policy Issuance14) Lapse & Revival

Management20 ) Claim

Assessment

3) RiskManagement

7) Brandmanagement

12) Policy endorsement

15) Loans & withdrawal

21) Claim Payouts

4) Product Launch 8) Publicity & Promotion

16) GrievanceManagement

22) FraudManagement

9) Direct Sales17) Policy

cancellation

18) Premium collection

Selection process

Selection of projects

Data Tools Why?

▪ Voice of Customer

▪ KPI Performance of Customer Service Process

▪ Voice of Business

▪ List of potential projects

▪ Project selection criteria

▪ List of potential projects

▪ Customer Insighting

▪ Customer Service Dashboard

▪ Strategic Plan

▪ Prioritization Matrix

▪ Project selection matrix

▪ Methodology table

▪Understand improvment opportunity areas

▪ Analyze process performance and KPI deviations

▪ To understand over served and underserved areas

▪ To quantitatively and qualitatively assess and prioritize projects

▪ Impact of each project on selection criteria

▪ Select appropriate methodology

Problem detection

Potential project identification

What data was generated to help select the project ? (Q1)1.2.2

Data Collection sheet for Ethnography1.1.1

14Max Life Insurance

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Max Life Insurance 15

Impact on strategic priorities

Financial ImpactImpact on end

customerEase of

ImplementationScore

Reduction in grievances 5 4 4 6 480

Reducing incidence rate of Flow of queries to query resolution desk

4 5 5 4 400

InstaClaim – On time processing of claims ( % claims settled in 1 day)

5 5 5 5 625

Improving Surrender Retention 4 5 5 4 400

Improving straight pass% of policy issuance

4 4 4 4 256

Score 100-300 300-600 >600

Methodology Maximizer Green Belt Black Belt

ProjectsCriteria

Project Prioritization Matrix

Method

To quantitatively and qualitatively assess and prioritize the project based on its financial impact, ease of execution & implementation as

well as impact on end customer

Why?

What methods and /or tools were used to assess or prioritize the need for the project? (Q2)Why were these methods and/or tools used to select the project? (Q3)1.2.2

Max Life Insurance 16

What Goals (organizational and/or local), performance measures, and/or strategies is the project expected to impact? (Q 1)What is the relationship between the stated measures and perceived gap in 1.2.1? (Q2)

1.1.1

Project goals and their impact on Strategic

pillars

Relationship of stated measures with

opportunity identified

1.2.1

1.2.3

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Max Life Insurance

What is the problem statement that expresses where the organization wants to be at the end of the project? (Q3)

1.2.3

Project Title – InstaClaim – Claim Settlement in 1 day

Business Case

Claims is a service differentiator and a moment of truth for a Life Insurance company. In May’12, we launchedan Industry first initiative of Claims Guarantee which included settling claim within 10 days of receipt of lastdocument. We have met our promises consistently by settling approx 99.99 % claims within 10 days and areindustry leader in area of claim paid percentage consistently for the past 3 years. A TAT of 1 day will be a newbenchmark in Life Insurance companies in India. This will help enhance Max Life brand and create more valuefor customer thereby enabling Max Life vision to be the most admired Life Insurance Company.

Goal Statement

Metric Current level Goal/Target Target date

% Claim Settled in 1

day

31 %

(Sep ‘15 – Nov ’15)

Phase 1: 80 %

Phase 2: 95 %

Phase 1: 31Aug16

Phase 2: 31Dec16

Project Plan: Phase 2

Phase Start End Remarks

Define

Measure

Analyse

Improve

Control

1-Dec-15

16-Dec-15

1-Jan-16

1-Feb-16

1-Jun-16

15-Dec-15

31-Dec-15

31-Jan-16

31-May-16

31-Aug-16 Or whenever the result is achieved

Problem Statement

Pain: Only 31% of the non early claims are settled in 1 Day (Sep’15-Nov15)Impact – As per FY’16 trends, this will impact ~65 % of total claims. Also this willimpact the CSAT for claims unit.Opportunity – There is an opportunity to enhance the One Day Claim % of Eligibleclaims to 95 % with in 1 day

Project Scope

Process Under Improvement : Claims Settlement Process (Approval)Start Point : Claim Intimation, NAV available in case of ULIPEnd point : Claim SettlementIn Scope : Individual Life Non Early (>3 years) admissible claims Out of Scope : Reopen Cases, Repudiation, Policy reinstated with HDF in last 3 years, Suspected Fraud and claim where LA had multiple policies with Early claims as well

Project Team

Sponsor : Ashok S NChampion : Dr. Syed AsifFLG Quality Leader : Nitin DixitProject Leader : Anil Sharma, Project SME: Kapil KaushikQuality Mentor : Vinit JulkaTeam Members : Manish Gomber, Akash Keswani, Bharat Chabra, Sumit Jain, GitikaPuri, Shradha Agarwal, Shibi Shrivastava, Vikar Alam, OM Prakash, G Uma, TarunGautam, Nikhl Madan, Aman Yadav (IT) Manmeet Kaur (Finance), Zonal Spocs, Rashi Singhal (Marketing)

Problem statement : As on Sep’15-Nov ’15 data analysis, Only 31 % claims are settled in 1 day and there is an opportunity to improve upon this critical parameter.

Project team wanted to improve On time Claims processing to provide superior customer experience

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Max Life Insurance

How were the stakeholder groups identified? (1/2)What or who are stakeholder groups ? (2/2)1.3.1

I ERoles :- Influencer Executor

18

Supplier(s) Input(s) Process(s) Output(s) Customer(s)S I P O C

▪ Claimant

▪ Agent Advisors

▪ Branch Office Exec

▪ Channel Partners

▪ Claim Documents

▪ Closure confirmation

▪ Approval SMS

▪ Policyholders

▪ Agent Advisors

Documents Received at front end & saved at FTP

Documents Uploaded Claim Processed Evaluated by Authority Decision Approved

Internal StakeholdersHead of

OperationsHead of Field Operations

Head of FinanceAssistant Vice

PresidentTechnology

Assistant Vice President Training

External Stakeholders Claimants Agent Advisors

Chief Distribution Officer

1.2.1 (Q3)

I

I I

E

E E E

Identifying departments :- -

- Directly involved in processes

-Indirectly involved, but are critical

for success

-Identifying suppliers and

customers of the process

-Identifying the service components

of the process

- Identifying details of each process

activity and departments responsible

for them

- By considering the

individual’s concern

I

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Max Life Insurance

What knowledge or skill sets were determined to be necessary for successful completion of project?(1/3)To what extent did the existing stakeholder groups have the required knowledge or skills? (2/3) What additional knowledge and skills were brought in to make the project successful? (3/3)

1.3.2

Sponsor

• Lean Six Sigma Awareness

• Strategic Vision

• Influence and Leadership

• Effective Communication

• Negotiation

• Lean Six Sigma Awareness

• Strategic Vision

• Influence and Leadership

• Decision Making

• Process Knowledge

• Champion Training

• Advanced Lean Six Sigma Methodology

• Innovation Tools• Influence and Leadership• Coaching and Training• Interpersonal Relationships• Project Management• Basic Underwriting & Claims

Knowledge

• None additional

• Champion training

(2 Days)

Champion

Black BeltMentor

Knowledge required Current level of knowledge Additional knowledge brought in

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

c

19

• Innovation Tools – Brain-

writing, Idea Sorting &

Refinement, Design FMEA,

Ethnography

• Basics of Claimsc

Max Life Insurance

What knowledge or skill sets were determined to be necessary for successful completion of project?(1/3)To what extent did the existing stakeholder groups have the required knowledge or skills? (2/3) What additional knowledge and skills were brought in to make the project successful? (3/3)

1.3.2

Project Leader

• Advanced Lean Six Sigma methodology• Team work• Influence and Leadership• Coaching and Training• Interpersonal Relationships• Mortality Concepts• Project Management

• Effective Communication• Process knowledge• Conflict Management•Mortality Concepts• Analytical skills• Lean six sigma

• Black Belt Training (10 Days)

• Lean Six Sigma Green Belt - (5 Days) for 5 team members

• Maximiser Trainings – 2 days – Rest of the team members

• Generative Team Building Session for all Project team for 2 days

• Team building through generative team building exercise

• Awareness Training sessions for Branch Office Field SPOCs

Project Team

Stakeholder

Representatives

Knowledge required Current level of knowledge Additional knowledge brought in

• Team work• Process Knowledge• Change Management• Project Management• Basic Underwriting & Claims

Knowledge

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

c

c

c

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Max Life Insurance

Before the project started, what specific training was done? (1/2)1.3.3

• Concepts of forensic checks

• Qualitative factor analysis to identify high risk indicators

• Reporting suspicious cases to the underwriting teams

Problem Solving

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Green Belt Six Sigma Training (5 days training for project team)

• SIPOC and Process Mapping, VSM, Ishikawa/fishbone

• FMEA / Control Impact Matrix

• Basic Statistical Tools - Pareto, Box Plot, Histograms, Regression, Scatter Plot, Control Charts

• Statistical Analysis – Hypothesis testing, Sample and Proportion Test

Generative Team Building / Innovation basics(1 day workshop)

• Customer Insighting (To understand importance vs. satisfaction related to customers)

• Brain-writing, creative challenge, design FMEA

• Ideas sorting and refinement

• Team Building , Collaboration, Cross Functional Team Alignment

Trainings

Tools Learnt

Conducted by Internal MBB’s

1.3.2

Exam Based

Conducted by External

Consultant

Case Study Based

Max Life’s Lean Six Sigma Methodology

DMAIC MethodologyDefine Problem

Measure Performance

Analyze ProblemImprove

PerformanceControl

Performance

Max Life Insurance

Before the project started ,what was done to prepare the team to work together as a team?(2/2)1.3.4

Usage of GRPI Tool

Goal clarity provided to team members by explaining-

• Correlation between One Day Claim and Customer Satisfaction

• Team members contribution to the project’s Big Y

• “WIFME - What’s in it for me” clarity given to the team members.

Generative

Degenerative

Generative team building exercise was initiated to align everyone to the common goal of the project

Visual impact created through posters & real time case studies

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Max Life Insurance

What roles and expectations were determined ahead of the project? (1/3)1.3.4

KEY STAKEHOLDERS DEFINE MEASURE ANALYSIS IMPROVE CONTROL

Steering Team A/I A/I A/I A/I A/I

Claims Team M M M M M

Field Operations Team R R R M R

Project team M M M M M

Quality Team R R R R I

What Role?

A - Approval of team decisions outside their charter/authorities, i.e., sponsor, business leaderR - Resource to the team, one whose expertise, skills, “clout” may be needed on an ad-hoc basisM - Member of team, with the authorities and boundaries of the charterI - Interested party, one who will need to be kept informed on direction, findings

Expectations

• Provide strategic vision

• Guarantee commitment of team

• Project definition

• Ensure alignment with business

• Ensure resource allocation• Decision making with

black belt

• Rigorous application of Six Sigma

• Lead the team to success• Decision making with

champion

• Data Collection• Active participation in

DMAIC Phases• Key players in the project• Improvement journey

• Support with training requirement

• Provide expertise when required

Sponsor Champion Quality & Black belt Project Team Support Functions

Various Departments came together for Creation of ARMI

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Max Life Insurance

What deadlines and deliverables did the team have to consider ahead of actually starting the project? (2/3)

1.3.4

Deadlines Deliverable

Define & Measure Phase

ImprovePhase

Control

Analyze Phase

• Project plan sharing with champions &sponsors

• Weekly meetings with BB & GB for projectprogress

• Share outcome of analysis & root causers• Share customer insighting outputs with the

team

• 1st Dec, 2015 to 31st Dec, 2015

• 1 Months from the project startup

• 1st Jan, 2016 to 31st Jan 2016• 1 Month after the

measure phase completion

• 1st Feb, 2016 to 31st May, 2016• 1 Month after Analyze phase

completion

• 1st Jun, 2016 to 31st Aug, 2016

• 3 months after improvephase completion

• Project charter• CTQs• Process mapping• Data collected & MSA• Process performance• Toll gate review signoffs

• Hypothesis testing of historic data• Customer need analysis• Validation of improvement opportunities• Tollgate review signoffs

• Solutions designed & tested• Cost benefit & risk analysis• Implementation plan• Final solutions implemented• Tollgate review sign offs

• Process control systems• Governance & dash boarding• Control charts• Replication opportunity• Best practice sharing

• End of phase presentation to MBB & projectsponsor

• Standard DMAIC checklist verification• Review with champion & sponsor

Team routine & communication

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Max Life Insurance

Before the project started, what team routines, including communication were established? (3/3)

1.3.4

Stakeholder-wise MIS expectations

Stakeholder Type of MIS Periodicity

Steering Team CTQ Performance Monthly

Field SPOCs Delay Case HighlightWeekly, Real time for delay

cases

Project Team CTQ movement with Performance review Monthly

What Why When Whom Who

Team meetings

Face-to-face groupmeeting of all project team members to discuss requirement, progress against plan, issues, milestone dates and upcoming events

Weekly Key project team Anil Sharma

MIS/reports Tracking and monitoring MonthlyChampion / Keyproject tam

Kapil Kaushik

Project plan updateTQMI presentation file is updated every weekend and distributed

Weekly Key project team Vinit Julka

Project reviewsFace-to-face meeting with project team

Monthly

Key project team Project sponsor and Project champion

Ashok S N

Detailed communication plan

CO

MM

UN

ICA

TIO

N

TEA

M R

OU

TIN

ES

Governance review with steering team on monthly basis

Project review rigor with project champion and project sponsor. Seeking suggestions for course correction

Cross functional team huddles on a weekly basis & plan of action for the next week

Monthly project progress report & CTQ movement

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Max Life Insurance 26

Current Situation and Root Cause Analysis

Section 2

2.1.0 Key Measures Expected of the Project2.2.0 Possible improvement opportunities2.3.0 Final improvement opportunities2.4.0 Project Management Update

14

1.2.3

By the end of the project the company expected to

have improved on time claim processing by

completing 95% cases within 1 working day, there by

enhancing customer satisfaction as well.

2.1.1 What specific Goals and/or measures is the team trying to achieve with the project? (Q1)

27Max Life Insurance

95% Claim to be settled within 1 working Day

• Improvement in customer satisfaction scores

• Reduction in count of claim delay related queries Expected benefits

Additional Potential Benefits

(estimated by the team)

• Customer loyalty scores

• Process Maturity Index

40%

56 per month

50%

~40 per month

65%

3.5

75%

4.5

Current Estimated

Current Estimated1.1.0

2.1.1 What additional potential benefits, other than the specific goals and/or measures, will the project impact? (Q2)

28Max Life Insurance

15

29

To ensure scope of project was clear to the team and all

stakeholders. Hi-level process mapping was done to understand

cross functional linkages / areas impacted. This also helped in

identifying our end-customer, suppliers, output and input

indicators.

Analysis of current situation

To understand the interactions and details of the present

process. We identified wastes, multiple hand-offs and other non-

value add activities in the process. It was also helpful to analyze

the flow of information.

E.g. Claims TAT from Branch Office to HO was found to have a big

improvement opportunity

2.2.1What methods and/or tools were used to identify possible root causes? (Q1)Why were these methods and/or tools selected? (Q2) (1/3)

Max Life Insurance

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This was used to determine the stability and capability of the

process. The team used mini-tab to create the Graphical Summary

of TAT to recognize instability and determined a course of action

to remove the out of control conditions. It showed that data is

non normal & there are outliers in the current process. Currently

only 31% percent of our claims are settled in 1 Day

To understand importance vs. satisfaction level of customer

resulting in over served, served right and under served areas.

E.g. Customer wants the time taken to be minimized

Analysis of current situation

What methods and/or tools were used to identify possible root causes? (Q1)Why were these methods and/or tools selected?(Q2) (2/3)2.2.1

Max Life Insurance

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31

Fish bone was used for grouping of potential causes by their

natural affinity to identify similar X’es thereby ensuring

exclusivity.

Detection of Root Causes

Cross functional team got together to list down number of

potential causes that impacted the CTQ. A total of 46 causes

were identified basis affinity diagram and brainstorming

What methods and/or tools were used to identify possible root causes? (Q1)Why were these methods and/or tools selected?(Q2) (2/3)2.2.1

Max Life Insurance

Muti-voting was a way for the group to narrow down a list of causes to a manageable few. While multivoting is not a decision making tool, it was a great way for us to achieve consensus on an option that was most-favoured by the group.

Cause & Effect Matrix To understand the relationship between inputs and outputs and identify factors having critical influence. It enables the

numerical representation of process inputs and outputs and the relationship between them.

Pareto Analysis was done to analyse delay in claim intimation from different zones to enable decision-making. The idea was that by working on 20% of the causes we could generate 80% of the benefit.

What methods and/or tools were used to identify possible improvement opportunities? (Q1)Why were these methods and/or tools selected?(Q2) (2/2)2.2.1

32Max Life Insurance

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Max Life Insurance

How was the team prepared to use the methods and/or tools? (Q3) 2.2.1

Max Life’s Lean Six Sigma Methodology

Define Problem Measure Performance Analyze Problem Improve Performance Control Performance

Green Belt Six Sigma Training (5 days training for project team)

Workshops and on the job training(10 Days)

Generative Team Building (2 days workshop)

Internal MBB’s External Consultant

Exam Based Case Study Based

DMAIC

Methodology

Trainings

Tools Learnt▪ SIPOC, Process Maps, VSM (current State)▪ Ethnography▪Graphical Summary, Multivoting▪ Brainstorming, Ishikawa▪ Cause & Effect Matrix, Pareto Analysis▪ FMEA/Risk Matrix▪ Basis Statistical Tools Like Chi Square, 2 p test▪ 5 Why Analysis

▪ Group discussion techniques ( Key issue & tips)▪ Team Building Exercises▪ Case studies

▪ Claims Concepts ▪ Awareness series-Do’s and don't ▪ Case studies & Common Challenges faced

1.3.21.3.3

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Max Life Insurance

What data was generated and how was the data analyzed to identify the possible improvement opportunities? (Q1) (1/2)2.2.2

SIPOC

Tools

Data Generated

How?

2.2.2 Q1 (1/2) What data was

generated?

2.2.2 Q1 (2/2) How was the

data analyzed?

Value Stream Map Customer Insighting

Project Scope:

• Inputs

• Outputs

• Suppliers

• Customers

Detailed Process:• Waste• Sub processes• Reasons for rework

and pile ups

Voice of Customer:• Served Right• Under Served areas

▪ Process walk for accuracy

▪ Process walk▪ Document review▪ Pareto of reasons

for rework

Interviewing customerson what is important and how satisfied are they with the current services

2.2.1

34

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Max Life Insurance

What data was generated and how was the data analyzed to identify the possible improvement opportunities? (Q1) (2/2)2.2.2

Tools

Data Generated

How?

2.2.2 Q1 (1/2) What data was

generated?

2.2.2 Q1 (2/2) How was the

data analyzed?

Cause & Effect

Matrix

• Final list of 10 possible improvement opportunities.

• Impact on CTQ’s

▪ Possible improvement opportunities weighted in terms of their impact on CTQs

▪ Consensus▪ Voting

Pareto

20 most likely possible improvement opportunities

▪ Prioritization of possibleimprovementopportunities with a pre-defined selection criteriaconsidering voice ofprocess

2.2.1

35

Affinity + Ishikawa

46 Possible improvement opportunities grouped into 3 category

By grouping of potential causes by their natural affinity to identify similar Xs thereby ensuring exclusivity

Max Life Insurance

What were the possible improvement opportunities? (Q2)2.2.2

Analysis ofcurrent

symptoms

VSM

Tools Used

Identification Of potential

improvement opportunities

Aff

init

y

C &

E

Final list of Potential improvement opportunities

36

SIP

OC

Ish

ikaw

a

Par

eto

S. No10 Potential improvement

opportunities

1 Delay in Branch Office-HO intimation TAT

2 Risk Scoring Model enhancement

3 Channel

4 Zone

5 Account value

6 High Edit Claim cases

7 System Process flow/Design Changes

8 Claim amount

9 Low Claims process awareness in field

10 Team alignment

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Max Life Insurance

What methods and / or tools were used to identify final improvement opportunities?(Q1)Why were these methods and/or tools selected ? (Q2)2.3.1

Tools Used?

Why?

How?

FMEA

Used to validate 1 cause –Delay in intimation fromBranch Office to HO – this wasfound to be significant withthe P value of "0" but notsignificant enough as its "RSquare adjusted" was merely16%

Done for 6 causes wheremultiple levels of Xs were to becompared for Claim settlementTAT. For Example Risk Scoringmodel Model enhancementhad an impact on ClaimsSettlement TAT

Conducted for 2 causesincluding Low Claim awarenessin filed and Team Alignment toidentify improvementopportunities by askingmultiple subsequent “why’s

FMEA was conducted for 1 X –System Process flow/DesignChanges - identified varioussystem flows hindering theachievement of 1 day TAT andbugs which had high occurrencesbut were being detected late

Hypothesis testing with mini-tab on data collected during measure phase.

Hypothesis testing with mini-tab on data collected during measure phase.

Hypothesis Testing - Logistic Regression

Hypothesis Testing – Chi Square

5 Why

Evaluating severity, occurrence and detection of failure modes of possible improvement opportunities

Asking subsequent questions to reach final root cause basis brainstorming with team

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Max Life Insurance

How was team prepared to use the methods and/or tools? (Q3)2.3.1

Max Life’s Lean Six Sigma Methodology

Define Problem Measure Performance Analyse Problem Improve Performance Control Performance

Green Belt Six Sigma Training (5 days training for project team)

Internal MBB’s

Exam Based

DMAIC

Methodology

Tools Learnt

Training

▪ SIPOC, Process Maps▪ Brainstorming, Ishikawa▪ Cause & Effect Matrix, Pareto Analysis▪ FMEA/Risk Matrix▪ Basis Statistical Tools Like Chi square, Regression ▪ 5 Why Analysis

1.3.21.3.3

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20

Max Life Insurance

What data was generated and how was the data analyzed in order to identify improvement opportunities? (Q1)What are specific examples of data analysis that lead to the final improvement opportunities? (Q2)2.3.2

1. Branch Office Intimation TAT

2. Risk Scoring model issues

3. Channel

4. Zone

5. Account Value

6. Edit Claim Issues

7. System Issues

8. Claim Amount

9. Low Communication (Awareness)

Final Causes

Data

Analysis

Examples

What were improvement opportunity(ies)? (3/3)

FMEA

• List of potential failure modes

• Risk Priority Number (RPN) basis risk associated with each failure

• X 7 – System Issues

• Prioritization of highest risk index

• In built system issues like multiple policies have to be processed together instead of prioritizing one over another

HypothesisTesting – Chi Square

& Pareto

• Historic data for project Y & high impact Xs like:

X2-Risk Scoring Model Enhancement

X3-Channel X4- ZoneX5-Account ValueX6-Edit Claim IssuesX8-Claim Amount

• Hypothesis testing in mini-tab with data collected in measure phase

• Results of tests allowed to accept/ reject the hypothesis

• Due to system bugs wrong calculation of claim amount led to delay

5 Why analysis

• Root Cause Analysis done for 2 potential causes basis 5 Why Analysis technique by

X9-Low Communication

X10 Team Alignment

• Through Brainstorming

• Field SPOCs in Branch Office were not having full awareness of claim requirements leading to deficiency in claim submission

39

10. Team Alignment

• Historic data for project Y & high impact Xs like:

X 1- Branch Office Intimation TAT

• In case TAT is higher for Claim intimation from Branch Office to HO claim settlement TAT increases

HypothesisTesting –Logistic

Regression

• Hypothesis testing in mini-tab with data collected in measure phase

• Results of tests allowed to accept/ reject the hypothesis

Validated using Regression

X1 - Delay in Branch Office-HO

intimation TAT

X 2 - Risk Scoring Model

Enhancement Validated using

Chi Square

X3 - Channel

Validated using Pareto & Bubble Chart

X4 - Zone

Validated using Pareto

X5 - Account Value

Validated using Chi Square

X6 - High Edit Claim cases

Validated using Chi Square

X7 - System Process flow/Design Changes

Validated using FMEA

X8 - Claim Amount

Validated using Chi Square

X9 - Low Claims process awareness in

field

Validated using 5 Why

10 Validated improvement opportunities Evidences

X10 - Team alignment

Validated using 5 Why

The use of various methods and tools with records/data were effectively used with the training by the lean six sigma champion at each phase of the determination of the improvement opportunities

Po

ten

tial

cau

ses

: 1

0, V

alid

ate

d :

8

2.3.3

How was (were) the final improvement opportunities validated?What evidence showed that the final improvement opportunities were validated prior to solution development? (Q2 – 1/2)

2.3.3

40Max Life Insurance

21

Max Life Insurance

What evidence showed that the final improvement opportunities were validated prior to solution development? (Q2 – 2/2) 2.3.3

• What - Project checklist - Phase wise• Aim - Project key stages tracking and ensure methodology followed• How - Checklist to be reviewed by Quality dept and to be reviewed

before toll gate review by Champion & Sponsor

1.3.4

41

Max Life Insurance

How was the correctness of the initial project scope, deliverables, and timings verified? (Q1)2.4.1

Deadline Deliverable Scope

Define & Measure Phase

AnalyzePhase

• 31Dec2015• 1 Month from start of

the project • Successfully completed

• Project charter• CTQs• Process mapping• Data collected & MSA• Process performance• All approved at tollgate with

checklist

• Sponsor & team in tollgate• Causes found within initial

scope• No need to change the scope

• 31Jan2016• 1 Month after the

Measure phase completion

• Successfully completed

• Hypothesis testing ofhistoric data

• Customer need analysis• Validation of improvement

opportunities• All Approved at tollgate with

checklist

Governance, Reviews & Project Team Meetings Conducted At Every Key Milestone Stage of the Project

Sponsor, Champion, Master Black Belt & Project TeamMake a Project Management Review for the Final Tollgate For The Phase

42

TOLL GATE CHECK LIST

22

Q1. How were the stakeholders involved and/or communicated within the root cause opportunity phase of the project? (2/4)2.4.1

StakeholderWho How involved or communicated

Project Steering Team

Quality Team

Distribution Team

Field Operations Team

Finance Team

Head Operations/Finance/Field Operations/Technology, Sponsors & Champions

Quality Experts & coordinators

Experts in distribution team

Field Operation SPOC’s at Branch Offices

Tech Team providing system enhancement and resolutions

Finance Manager and Team to process claim payment

Provided the expert guidance at root causeopportunity phase

Ensured correct methods & Usage of DMAIC techniques/ statistical tools for root cause

identification through six sigma workshops

Provided insights on improvement opportunities and possible causes of cases where full requirements are not received in one Branch Office

Helped in getting claim intimated on timeData Analysis of various problems identified.

Sharing Process changes required to reduce and enable Finance to share Payment on same day

System Enhancement, Existing bugs identification and resolution

Technology Team

1.3.1

43Max Life Insurance

Max Life Insurance

Q1. What stakeholder resistance was identified and /or addressed in this phase of the project? (3/4)2.4.1

Stakeholder

Steering Team None

Quality Team

Distribution Team

Field Operations Team

Technology Team

Finance Team

None

None

None

None

None

None None

Sponsor & Champion shared project goal and importance to company strategic priorities, trade off opportunities for team updated

Fear of extra workload and addition in KRAs, what’s in it for me

None

None None None

None

Resistance Anticipated or Verified Influencing StrategyNew Identified

44

None

Mindset change for 1 day processing,

Generative session between sponsor, champion and Finance Head along with project team

23

Max Life Insurance

How was the appropriateness of the initial team membership and management

routines confirmed?(Q4)2.4.1

Team Alignment through GRPI

Cross Functional Team

• Project Leader (Black Belt)• Project Sponsors• Project Champion• Claims Team • Finance team

• Trainings delivery required for field SPOCs& UCHIT Pilot launch

Management Routine Confirmation

• Executive Management Team ------ Monthly review• Senior Leadership Team ------- Monthly to Fortnightly• Operations Head ------ Weekly reviews

✓

✓

✓

CurrentTeam Members

Additional TeamsTraining team

1.3.4

45

Max Life Insurance 46

Solution/ Improvement Development

Section 3

3.1.0 Possible Solution or Improvements3.2.0 Final Solutions or Improvements3.3.0 Project Management update

24

Max Life Insurance

What methods and/or tools were used to identify the possible solution(s)? (Q1)

Why were these methods and/or tools selected? (Q2)3.1.1

Generationof PossibleSolutions / ideas

To sort similar ideas into groups for easier analysis

Brainstorming

Consultation with IT team and SubjectMatter Expert

Benchmarking

Affinity Mapping

To generate maximum possible solutions in limited time available through tools like Brain-writing and Creative Challenge

To leverage technical expertise of IT team and SMEduring solution generation

To understand servicing model of other competitors and the features available on their self servicing platforms

Multi-votingTo have manageable number of solutions froma list of possible solutions

Tools Why

2.3.2

47

Visualize and identify the non value added activitiesVSM

8 Validated Root Causes

Delay in GO-HO Intimation TAT

Risk Score Model Enhancement

Channel

Zone

High Edit Claim Cases

System Process flow/Design Changes

Low Claims process Awareness in field

Team Alignment

1.2.1

Max Life Insurance

How was team prepared to use the methods and/or tools? (Q3)3.1.1

Max Life’s Lean Six Sigma Methodology

Define Problem Measure Performance Analyze Problem Improve Performance Control Performance

Green Belt Six Sigma Training (5 days training for project team)

Internal MBB’s

Exam Based

DMAIC

Methodology

Tools Learnt

Trainings

1.3.21.3.3

▪ Multi-voting▪ Brainstorming & Affinity ▪ Benchmarking ▪ FMEA/Risk Matrix▪ Cost Benefit Analysis▪ Solution Selection Matrix’▪ Pilot Testing

48

25

Max Life Insurance

3.1.2

Tools Used

Brainstorming and Affinity mapping

Value StreamBenchmarkingConsultation with IT team and Subject Matter Expert

Data

List of improvement ideas organized into themes

List of process gaps and rework loops

Suggestions related technical enhancements for self

service options

HowAnalyzed?

Through team workshops

Understand impact of each gap if bridged on the CTQ

By understanding what is offered by Competition vs.

Max Life

Estimate contribution of each idea in reducing Claim

settlement TAT

What data was generated and how was the data analyzed to determine the possible solution(s) / improvement(s)? (1/3)

34 Possible Solutions

Generation of possible solutions / ideas

49

List of best practices from competition including

International Life and Non Life Insurance Cos viz Aflac

Max Life Insurance

What are the possible solution(s)/improvement(s)? (Q2/3) 3.1.2

Root Cause Possible solutionsS.No

X- 1 Delay in Branch Office to Head Office intimation TAT

Initiate GB project on Branch Office Intimation TAT as a part of this Black belt projectStabilize UCHIT roll out at pilot Branch OfficesDay 0 upload of documents on FTP/EmailTraining - Presentation on UCHIT Intimation process and using Claim Omni Docs - In Person in Delhi 1 & Over Call on 4 locationsIntensive Branch Office communication campaign around DO’s & Don’ts for claim handling Close Monitoring of quality of Intimations to be done at HO by case level trackingLive Status of Claims at Branch Offices

X-2 Risk Scoring model enhancement

Automation of SMS at various stages through UchitFinance tickler time changed from 10.30 am to 12 noon to enable ‘One Day claim ’NAV tickler timing changed from next day 6 am to same day 10 pm to enable processing of ULIPsRisk Scoring model limit raised from Rs 25 Lacs from Rs 10 Lacs

Align Spocs of Agency to support on express settlement agendaCreate awareness with in Max life Channels/Branch Offices for Express Claims settlementMake front end staff at Channels/Branch Offices for claim related queries Regular conference calls with Axis/Amsure channel spocs for claim awarenessSimplified claims form Launched at the front end

X- 3

&

4

Channel/Zone

GB Project initiated to fix system gaps pertaining to automate edit claimsIntimations & Scanning to be done on a daily basis Daily Approvals including on boarding new approversApproval MIS to be circulated with in the teamClaim received vide CSMS/Email - sent to intimation team without delay

X -6 High Edit Claim cases

Uchit Claims system under revamp – to be done under 3 phases during FY ’17 Approval SMS automation under progress (plan to Branch Office live on 24 July, 2016)Online claim intimation (website & mobile) – requirement placed as part of corporate website projectIn-house GB project & Cross functional project done with PAG & Claims team with assistance from Actuarial teamRe- certification exercise completed – 100% cases executed and analysed as per plan, 38 issues identified and logged with IT team for RCANecessary rectification actions to be planned post RCAApproval SMS - Automation on Uchit

X - 7System Process flow/Design changes

50

26

Max Life Insurance

What are the possible solution(s) / improvement(s)? (Q2/3) Contd.. 3.1.2

Express Claim Settlement Communication plan to be rolled out- Phase 1 Branch Office Dashboard publication (Head Field Ops & his DRs) Daily Email to respective Branch Office's(Delayed Intimation >0)

Root Cause Possible solutionsS.No

X - 9 Low Claim process awareness in field

X-10Team alignment

Dedicated team with expertise in non-early claims aligned with adequate back ups Strong outsourced team aligned with timelines with back up plan Shift working with 2 shifts (8.30 am & 11 pm) to maximize efficiencyWork from home facility being used for 2 resources

51

Max Life Insurance

What evidence showed that the solutions(s) / improvement(s) identified were possible instead of final? (3/3)

3.1.2

52

•What – Project Checklist – Phase wise•Aim – Project key stages tracking and ensure methodology followed•How - Checklist to be reviewed by Quality dept and to be reviewed before toll gate review by Champion & Sponsor

1.3.4

27

What methods and/or tools were used to identify the final solution(s) / improvement(s)? (Q1)Why were these methods and/or tools selected? (Q2) (1/3)

Method - Define criteria aligned with strategic priorities34 Possible Solutions

To decide best solution considering criteria

Final Solution and Implementation Plan

Who Project Team + Process Owners + Specialists

Tool Team meeting with stakeholders and Quality Leader

Why? To translate strategic criteria into operational metrics for the project

Who Project Team + Process Owners

Tool Solution Selection Matrix

Why?Most suitable tool to evaluate potential effectiveness of solution in line with organizational Goals and multiple criteria

3.1.2

53Max Life Insurance

3.2.1

3.2.1What methods and/or tools were used to identify the final solution(s) / improvement(s)? (Q1)Why were these methods and/or tools selected? (Q2) (3/3)

Impact

Ease

Cost

On project indicators

Of implementation

Of implementation

Criteria Description

Selection Matrix

Impact9

Cost9

Ease9

Impact

7 to 9 – High

4 to 6 – MediumWeighted average for degree of

contribution of each solution to the selected criteria

>=150 – High

<150 – Low

54Max Life Insurance

28

Max Life Insurance

How was team prepared to use the methods and/or tools? (3/3)3.2.1

Max Life’s Lean Six Sigma Methodology

Define Problem Measure Performance Analyze Problem Improve Performance Control Performance

Green Belt Six Sigma Training (5 days training for project team)

Internal MBB’s

Exam Based

DMAIC

Methodology

Tools Learnt

Trainings

▪ Multi-voting▪ Brainstorming & Affinity ▪ Benchmarking ▪ FMEA/Risk Matrix▪ Cost Benefit Analysis▪ Solution Selection Matrix’▪ Pilot Testing

1.3.21.3.3

55

3.2.2 How were the methods and/or tools used to determine the final solution(s) / improvement(s)? (Q1)

CTQ Impact

Cost Impact

EasePriority

No.

8 5 7 180

9 9 9

19 final solutions selected

Impact on CTQ

Cost Impact Ease

Solution Selection Matrix

1 2 3

7 to 9 – High

4 to 6 – Medium

>=150 – High

<150 – Low

56Max Life Insurance

29

Max Life Insurance

3.2.2P

eo

ple

Pro

cess

Tech

no

logy

What is (are) the final solution(s)/improvement(s)? (2/2)

19 Final solutions were categorized under 3 strategic themes

57

Technology

Process

People

Training - Presentation on UCHIT Intimation process and using Claim Omni Docs - In Person in Delhi 1 & Over Call on 4 locations

Align Spocs of Agency to support on express settlement agenda

Create awareness with in Max life Channels/Branch Offices for Express Claims settlement

Make front end staff at Channels/Branch Offices for claim related queries

Daily Approvals including on boarding new approvers

Express Claim Settlement Communication plan to be rolled out-Phase 1

Dedicated team with expertise in non-early claims aligned with adequate back ups

Initiate GB project on Branch Office Intimation TAT as a part of this Black belt project

Stabilize UCHIT roll out at pilot Branch Offices

Day 0 upload of documents on FTP/Email

Finance tickler time changed from 10.30 am to 12 noon to enable ‘One Day Pay’

NAV tickler timing changed from next day 6 am to same day 10 pm to enable processing of ULIPs

Intimations & Scanning to be done on a daily basis

In-house GB project & Cross functional project done with PAG & Claims team with assistance from Actuarial team

Re- certification exercise completed –100% cases executed and analyzed as per plan, 38 issues identified and logged with IT team for RCA

Uchit, Claims system being re-engineered – Basic work flowbeing changed under 3 phasesending FY ’17

GB Project initiated to fix system gaps pertaining to automate edit claims

Approval SMS automation

Online claim intimation (website & mobile) – requirement placed as part of corporate website project

How were the final solution(s) / improvement(s) validated? (Q1)

Final solution validated through Pilot Test, 2P Test and FMEA

How

58Max Life Insurance

3.2.3

30

Max Life Insurance

Potential solution

3.2.3

Pilot Plan & Implementation

59

Q2.What evidence showed that validation was performed prior to implementation? (1/2)

Statistical Validation FMEA

Max Life Insurance

Q2.What evidence showed that validation was performed prior to implementation? (2/2)3.2.3

60

• What – Project Checklist – Phase wise• Aim – Project key stages tracking and ensure methodology followed• How - Checklist to be reviewed by Quality dept and to be reviewed

before toll gate review by Champion & Sponsor

1.3.4

31

Max Life Insurance

Q1. What additional potential benefits were anticipated from the final solution(s)/ improvements? Q2. Were the additional potential benefits anticipated prior to implementation?

3.2.4

61

Not Anticipated

INR 50 Lakh Cost saveCost save from efficiency improvement to be

measured from Opex report

> 60 %QDNA – Awareness and EngagementNumber of people trained on quality concepts

and engagement in an org level project

NA

NA

A NAAnticipated

Process Maturity Index

75% Customer Loyalty scoresCustomer Loyalty survey basis relationship

assessment

Level 5

A

A

Additional benefits Expected Results

Definition/ Measurement

2.1.1

Industry benchmark process to be at level 5

What data were generated and how was the data analyzed to justify why the chosen final solution(s) / improvement(s) should be implemented? (Q1)

Indicators

Improvement in on time processing

Customer Satisfaction Top Box scores

Expected Results

95% in 1 day

50%

Pilot Test Results

How and when

• Before full scale implementation of solutions , pilot roll out results were presented to the steering team

• Cost benefit analysis to show that the investment made had a higher rate of return

• Impact of the results on the project objectives were encouraging leading to approval for full scale implementation

1.2.3

Claim delay related query count 45

Pilot Test

82% in 1 day

51%

43

1.1.0

62Max Life Insurance

3.2.5

32

What evidences showed that justification was performed prior to implementation? (Q2)

Evidence of cost benefit analysis prior to pilot & full

scale implementation

Basis the encouraging pilot results and financial justification, the steering team approved the full scale implementation plan of identified solutions

3.2.3 (1/2)

63Max Life Insurance

3.2.5

How was the correctness of the initial or updated project scope, deliverables and timings confirmed (or, what changes were made)?(Q1)

Project scope check

Project Timelines Check

Through toll gate review the correctness of the project scope, deliverables and timeline were checked

What is the cost benefit analysis?

Was a pilot conducted before full scale

implementation?

64Max Life Insurance

3.3.1

33

Max Life Insurance

Q1. How were stakeholders involved and / or communicated within solution / implementation stage of the project?(2/4)3.3.1

Stakeholder

Steering Team Approvals for final solutions & suggested modifications

Quality Team

Claims Team

Training Team

Assuring correct use of tools & techniques

Idea Generation, IterationPilot implementation

Pilot handholding & supportValidation of solutions

Providing System training to Field SPOCs

Involved in Degree of Involvement

High

High

High

Medium

High

High

Medium

Idea Generation, IterationPilot implementation

1.3.1

65

Field Operations Team

Finance Team Support CBA Validation of solutions

Technology Team

Max Life Insurance

Q1. What stakeholder resistance was identified and / or addressed in this phase of the project? (3/4)3.3.1

Stakeholder

Budget & Resource allocation in view of Merger plans

Valuable inputs & addressing the impediments

Promotion of quality tools through improvement initiatives

None

None

Enhanced focus from field staff helped in controlling bad business at first gate

None

Due to process improvement lot of rework will be saved

None

Training all Field SPOCs across regions is not practical

Resistance in change of Finance Batch Time and non availability of Finance Approver

Regular updates of data

Positive impact Resistance

• Using stakeholder analysis •Holding meetings between team & stakeholders

How?

InstaClaim adopted as Best practice by COO & CTO

Positive load testing results during pilot run

Influencing strategy

Claims System training packIncluded in induction & Regular training programs

1.3.1

66

Steering Team

Quality Team

Claims Team

Training Team

Field Operations Team

Finance Team

Technology Team

34

Max Life Insurance

How was the appropriateness of the initial team membership and management routines confirmed?(4/4)

GRPI Management

• Workload manageable so need to change any team membership

• No change in the knowledge & scope so no need to change or add members

• MBB approved use of DMAIC• Updated stakeholder feedback• Increase communication with stakeholders• Meetings held• Deadline& deliverables achieved

Team Membership (GANTT Chart)

Stakeholder Analysis Matrix

( Document Review)

Management Routines( Document Review)

How: Assessment in TollgateTeam with Sponsor & Master Black Belt

3.3.1

18% Improvement

67

Max Life Insurance

Section # 4

Implementation and Results Verification

4.00 Implementation and Results Verification4.10 Stakeholder Consideration in Implementation4.20 Solution/Improvement Implementation4.3.0 Project Results

68

35

Max Life Insurance

Q1. How were stakeholders involved in planning the solution/improvement implementation? 1/2Q2. How were stakeholders involved in implementing the solution/improvement? 2/1

4.1.1

StakeholderHow were they Involved in Planning?

How were they Involved in Implementation ?

Steering Team

Quality Team

Field Operations Team

Claims Team

Training Team

Technology Team

Approved the planning timetable & tasks with list of resources proposed

Approved the planning timetable & tasks with list of resources proposed

Actively participated as a team member in implementation planning

L&D -Actively involved in training initiatives for implementing solutions

Actively participated as a team member in implementation planning

Actively participated as a team member in implementation planning

Provided approval on Cost, Changed ticker timingsFinance Team

Ensured cross functional availability of resources from the departments involved

Accepted the new working ways by signing on the new process checklist

Accepted the new working ways by signing on the new process checklist & supervised new process

By preparing required training calendars & training the required resources

Conducted pilot tests & all system changes

Not much involvement in planning

Validation of methodology used in new processes & implementation

1.3.1

69

Q1. What was done to anticipate resistance before it occur? (1/3)Q2. What type of resistance were actually encountered during the course of solution/Improvement implementation? (2/3)4.1.2

Stakeholder

• Using stakeholder analysis •Holding meetings between team & stakeholders

How? What we did toanticipate resistance?

Positive Impact Resistance

Steering Team

Quality Team

Field Operations Team

Claims Team

Training Team

Finance team

Technology Team

Improvement in Claims TAT result in providing superior customer service and CSAT scores

None

Promotion of quality tools None

Contributes in Timely Intimation of Claim

Resistance to adopt to the new processes & practices fearing increase in workload and error due to new process

Direct contribution in one day payment TAT, potential cost save for future

None

None

None

None

None

NoneNone

70Max Life Insurance

36

Q1. How was the actual resistance identified? (3/3)4.1.2

Stakeholder Resistance Anticipated How identified

Steering TeamNone

Quality Team

Field Operations Team

Claims Team

Training Team

Finance Team

Technology Team

Delay in Claim intimationResistance to adopt to the new processes & practices fearing increase in workload and error due to new process

None

None

None

None

None

None

None

None

None

None

None

71Max Life Insurance

Q1. How was the actual resistance addressed (1/2)? Q2. How did the team know it was successful in addressing the resistance?(2/2)4.1.3

Stakeholder

Steering Team

None

Quality Team

Field Operations Team

Operations Team

Training Team

Finance Team

Technology Team

Through confirmation & KRA deployment through Head Field Operations

Resistance Detected Resistance Addressed Confirmation of Success

Delay in Claim intimation Meeting between Sponsor/Champion & Head Field Ops, Regular tracking and dashboarding

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

None

72Max Life Insurance

37

Q1. What was the evidence of stakeholder buy in ? 4.1.4

Who? How?Sponsor & ChampionSix Sigma Team

Team ObservationsMeetings with stakeholder

Stakeholder Evidence of Buy In

Steering TeamProject phase completion approval at every tollgate stage of DMAIC journey

Quality TeamProject phase completion Approval at every tollgate stage of DMAIC journey

Field Operations TeamPositive feedback during meetingsEnthusiasm expressed during pilot results

Claims TeamActive support during pilot testsHigh degree of cooperation in the definition of rolesOpen approvals & communication of results

Training Team Regular training delivery and adhoc support for any changes

Regular Payment Deliveries as per timelines

H

M

M

M

M

L

Promotes Changes

Accepts Changes

Doesn’t accept changes

Degree Of Buy In

HTechnology Team M

H

H

H

Finance Team

Delivery of all scheduled IT changes

73Max Life Insurance

Q2. What evidence showed that buy-in was obtained prior to implementation? (1/2)4.1.4

Major systemic process changes done and Uchit Claim system underwent complete overhaul post CBA approval from all the stakeholders

Planned IT releases

System enhancements

IT releases approvals

74Max Life Insurance

38

4.2.1 What processes or system were changed or created to implement the solution / improvement? (Q1) (1/2)

Automation Business Reports automated to track and monitor One day Claim processing

Automated reports availability

System Changes done

75Max Life Insurance

76

New Process 4 sheeter updated – 5 process steps removed from earlier process to bring efficiency Process ChangesSystem

ChangesRevised Claim Forms Launched to include additional information and authorization Risk Scoring model Limit increased from Rs 10 Lac to Rs 25 lac to enable more cases to be processed Finance batch Time changed from 10.30 am to 12 Noon to maximize same day processing

NAV batch time changed from day 1 to same day 10 pm to enable Market linked policy claims processing on same day

4.2.1 What processes or system were changed or created to implement the solution / improvement? (Q1) (2/2)

Max Life Insurance

39

What systems were changed or created to measure and manage the performance of the implementation? (Q2) (1/2)

4.2.1

Process Control System-Tracking in place to monitor 1 day Claim TAT

Input Process outcome indicators Control limits Checking item Frequency Responsibility

MTD Performance for One Day TAT % >95% Performance Monthly MIS Team

Reasons of Ineligibility Ongoing Performance MIS Weekly MIS Team

Reasons of Not Approved cases in 1 day Ongoing Performance MIS Weekly MIS Team

Approval SMS Ageing Ongoing Performance MIS Weekly MIS Team

77Max Life Insurance

78

Unified View of customer at Branch office – UNO

Online web based dashboard for Customer experience scores

System enhancements

Complaint logging through customer portal

Uchit Claim System Available at branch office

What systems were changed or created to measure and manage the performance of the implementation? (Q2) (2/2)

4.2.1

Max Life Insurance

40

Q1. What were the results?Q2. How did the results compare to the specific project goals/measures from Item 2.1.1? (1/2)4.3.1

79Max Life Insurance

Quick wins implemented

But Quick wins did not had permanent

impact

Solutions under Process and People

theme implemented

All Automation & Tech solutions implemented

One Day Claim – Trend lineIMRB Customer Satisfaction Survey - % respondents giving Excellent scores

High scores commensurate Big Y results

Claims delay related Queries reduced from 56 per month to an avg of 40 per month !!

Our Leadership position in Claims paid percentage in last 3 years helped us achieve significant %share of selection( max. of 21% )

With market launch of InstaClaim in end Oct’16 and continued industry leadership in Claims Paid percentage, our absolute Unique selections went up by 26 % in Dec’16 and by 70 % in Jan’17

Claims is one of the key driver for protection sales of the company

Max Life Protection Policies sold by leading Web Aggregator

Premium

Claims Experience

Plan Feature

Key drivers for protection sales

Advertising/Market Campaigns

80Max Life Insurance

Q1. What were the results?Q2. How did the results compare to the specific project goals/measures from Item 2.1.1? (2/2)4.3.1

1.1.1

Impact on protection sales

41

Q1 What additional benefits were realized from the project? Q2 How did the team measure any of the additional benefits that were ‘Soft’? Q3 How do the actual additional benefits that were realized compare to the expected additional benefits identified in item 3.2.4?

4.3.2

Additional benefits Pre-Project Expected Results Achieved Measure of Success

Customer Loyalty Score

Process Maturity Index

Ad

dit

ion

al B

enef

its

Not Anticipated

70%

INR 55 Lakhs to be realized in next 3 years, Rs 10 lakhsrealized in FY’17

79%Annual Customer Loyalty Survey by IMRB

Max Quality System

Cost Save

Soft

65%

Not Anticipated Opex Cost Save Dashboard

Max Quality System QDNA – Awareness and Engagement

3.5 4.5 5

69 % 80 %75 %

81Max Life Insurance

Section # 5

Preservation and Stakeholder

Communication5.00 Sustaining and Communicating Results5.10 Sustaining results Over Time5.20 Communication of Results

82Max Life Insurance

42

What was done to make sure the benefits obtained from the implementation(Item 4.2.1) were maintained? (Q1)

5.1.1

Measurement & Control system designed for the projects with control charts & Time series graphs

Weekly One day claim TAT Updates through regular dashboards

1.Control Plan Developed

Input Processors

Control Limits

Checking Item

Frequency

Responsibility

Contigency Plan

Daily WIP

MIS

100% Accuracy

Emails

Daily

Prashant Gusain

As & When

NEFT Penetration

TAT –Before 3rd

of Every month

Checklist & Emails

Daily

Gurjeet Singh

As & When

Review and Meeting

Feedback/Followup

MOM’s &Concalls

Weekly

Gurjeet Singh

Prashant Gusain

As & When

Communication

Communication Calender

Tracker

As per Plan

Amrita Bhardwaj

As & When

Training

Adherence to TC

Training Calender

Quaterly

Pooja Goyal

As & When

✓ Project Team✓ Project Heir

Multiple actions were taken to ensure the continuity of changes in process/systems

Role of Project Heir

Apply Six Sigma methods and tools to sustain project results

Monitor and control improvements achieved during project

Present ongoing results monthly

Extend the improvements further

Who? Who?

3.Web based dashboards for real time monitoring

2.Process changes as per ISO Standards

4.Visual Management & Control through Charts

5.Monthly reports by project heir to Management Committee

83Max Life Insurance

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What evidence showed that this became part of the organization’s culture / operating strategy? (Q2( (1/2)

• Company wide Emailer through a centralized process control unit• Replication of TAT improvement theme by other departments • Documenting of revised process & Sharing best practice on knowledge portal of Max Life – “E-cube”

Max Life Insurance

5.1.1

43

85

What was done to make sure the benefits obtained from the implementation(Item 4.2.1) were maintained? (Q1)

Project heir and Process ownersWho? DashboardHow?

Measurement & Control system designed for the projects

Dashboards & Control charts

5.1.2

Max Life Insurance

What evidence showed that this became part of the organization’s culture /operating strategy ? Q25.1.2

• Company wide Emailer through a centralized process control unit• Replication of TAT improvement theme by other departments • Documenting of revised process & Sharing best practice on knowledge portal – “e-cube”

• InstaClaim performance monitored at senior leadership levels – Part of Company wide update shared by Vice Chairman & MD in quarterly company town hall

86Max Life Insurance

44

What evidence showed that this became part of the organization’s culture Operating strategy?(2/2)5.1.2

• InstaClaim performance tracked and monitored regularly at operations leadership levels

87Max Life Insurance

How did the team communicate the results to the various stakeholder group? (1/2)5.2.1

StakeholderWho How Communicated

Steering Team

Quality Team

Field Operations Team

Operations Team

Training Team

Finance Team

Sponsors & Champions

Quality Experts & coordinators

Branch Offices

Service delivery TeamUnderwritingClaims

Training managers who support the training requirements

Finance Team to support in faster payouts

• Board meetings• Quarterly business updates• Monthly project updates through

dashboards & MIS

• Business quality councils• Monthly project team meetings• Program team meetings

For all system enhancements & automationsTechnology Team

• Monthly business reviews• Quarterly business updates• Monthly project updates through

dashboards

• Fortnightly conference calls• Monthly project updates through

dashboards

• Monthly project updates • Newsletter • Case Studies

• Monthly project updates through dashboards• Newsletter• Case Studies

• Monthly project updates through dashboards

• Newsletters88Max Life Insurance

45

InstaClaim launched on 24Oct2016 by Max Life Vice Chairman & MD and appreciated by Max Life Founder Chairman Emeritus Mr Analjit Singh

Launch EDM sent to all Max Life offices Launch Email sent to all policyholders

5.2.1

89Max Life Insurance

Max Life Top Management Key Note Messages on InstaClaim launch 5.2.1

90Max Life Insurance

Vice Chairman & MD Mr Rajesh Sud Message Chief Operating Officer Mr V Viswanand Message

46

InstaClaim Launch news was covered in major national dailies and insurance portals and had major impact 5.2.1

91Max Life Insurance

World Quality Congress Best Use of Six Sigma in Banking & Finance Sector

Max Group Best Black Belt Award

Project won “Best Black Belt of the year” award at Max Life & at Max Group level, Also won award at prestigious “World Quality Congress Awards” at National Level

Max Life Best Black Belt Award

92Max Life Insurance

47

Further way ahead…..

Can be replicated to other Line of businesses viz Group Claims, Health Claims

Can be replicated to Individual claims itself for “No Sum at Risk claims” in Early policy duration

Can be scaled to take up larger volumes post Merger as it has at its disposal technological and automated solutions including Uchit and Risk Scoring model

93Max Life Insurance

Thank you

Great Work!

Now….DMAIC journey will again start!!

Question being asked again !!

And is this the best we can do ??