Neil Betteridge's Presentation Part 2

Presenting Sponsor: Produced By:

© Guidewire 2012. All rights reserved

CATASTROPHE MANAGEMENT



CATs are the moment of truth for a carrier


© Guidewire 2012. All rights reserved © Guidewire 2012. All rights reserved

The Challenge

Effective, timely response to catastrophic devastation



The Challenge

Understanding the scope

and severity

Planning and deploying resources

Meeting claimants’ needs in time of crisis



Decision-making powered by Data in Context



Decision-making powered by Data in Context





Proactive Catastrophe Management Tools Deliver on Multiple Claims Success Factors

Customer Service Excellence

Operational Efficiency

Lower Loss Costs

Enables more timely response to customers in need

Rich visualization of scope and severity enables efficient and effective deployment of resources

Timely claims management serves to mitigate “claims inflation”



CORE CLAIMS MANAGEMENT PROCESSES



A Hierarchy of Insurance Work

• Data entry / clerical file work • Answering queries • Standard correspondence

• Large losses • Litigation strategy • Employee mentorship

• Claims judgment • Medical evaluation • Liability judgment

• Issue resolution • Vendor performance management • Negotiation

• Enforcement of process steps • File documentation • Assignment

Basic processing tasks

Procedural compliance

Interaction tasks

Best practice evaluation

Expert evaluation



Refocus Staff on Higher Value Tasks

• Customer satisfaction and retention • Indemnity • Combined ratio

Strategic Benefits

• Loss adjustment expense Tactical Benefits



Interaction tasks


Expert evaluation



Refocus Staff on Higher Value Tasks

• Indemnity • Combined ratio • Customer satisfaction and retention

Strategic Benefits

• Loss adjustment expense Tactical Benefits



Interaction tasks


Expert evaluation

Workplans can be created automatically reflecting claim-specific characteristics,

and activities assigned to appropriate people

Leading practices can be applied at all levels



Incomplete Claim Intake

The Challenge

“We don’t have a uniform set of questions that we ask. More or less, we’ve all evolved our own type of questions that we ask in each claim.”

“The front-line stuff has been a pet peeve for a long time because they don’t get that extra question at FNOL.”





Streamlined, Guided Notice Intake FNOL templates mean you get it right every time



Speeding Up Adjusting



Better Informed Evaluation



Combating Claims Fraud Cause for suspicion can emerge anytime in the claim lifecycle

Intake Assign Investigate Financials Recovery Closure

Circumstances match known fraud pattern

Vendor/provider has history of fraud

Suspicious reporting behavior

Business Rules

Questions Sets

Info Sharing Analytics



AN ONGOING PROCESS OF IMPROVING PROCESSES



Measurement Key to Ongoing Improvement in Claims

Key Performance Metric

Previously Not Measuring

Claim cycle time 17% Adjuster productivity 25% Adjuster assignment efficiency—right claim to right adjuster 75% Claims quality—adherence to internal quality standards 42% Claims Leakage 75%

Metrics limited in many legacy claims systems environments



Facilitate Management Visibility Claims system can facilitate “exception management”

Provide visibility to a range of key operational categories, e.g. Aging, Activities, etc.

Supervisor can drill down to an adjuster’s workload and then to any claim or activity.



Comparative Analytics for Operational Performance Insights

Cohort 2 Cohort 1

Comparative Analytics

Comparative Analytics



Continually Improve Claims Performance Peer Comparison: are my trends unique or industry-wide?

Time Comparison: how are my results changing?

Detailed Comparative Analysis: what can I do about it?

Where does my operation deviate and why?

• from the norm? • from prior results?

Diagnose Issues

Detect Trends

Identify and Act



By Type

By Severity

By State

By Cause

Salvage Subrogation

Benchmarking Sample: Net Recovery

Collision

Comprehensive

Property Damage

By Coverage

Recovery

21.7%

6.0%

2.5%

7.8%

4.8%

1.8%

13.2%

0.5%

0.1%

Comp (Theft Only) 16.4% 14.8% 0.9%

Note: Sample data. Provided for illustrative purposes only.

California 22.2%

Massachusetts 27.8%

Michigan 1.4%

Texas 15.5%

New York 26.6%

Florida 22.8%

Connecticut 24.3%

Pennsylvania 19.6%

Virginia 14.8%

Collision Subro by State



BETTER DATA OVER BIGGER DATA



Today’s Data Challenge 010110010110111101110101001000000110101001110101011100110111010000100000011011000110111101110011011101000010000001010100011010000110010100100000010001110110000101101101011001010010111001011001011011110111010100100000011010100111010101110011011101000010000001101100011011110111001101110100001000000101010001101000011001010010000001000111011000010110110101100101001011100101100101101111011101010010000001101010011101010111001101110100001000000110110001101111011100110111010000100000010101000110100001100101001000000100011101100001011011010110010100101110010110010110111101110101001000000110101001110101011100110111010000100000011011000110111101110011011101000010000001010100011010000110010100100000010001110110000101101101011001010010111001011001011011110111010100100000011010100111010101110011011101000010000001101100011011110111001101110100001000000101010001101000011001010010000001000111011000010110110101100101001011100101100101101111011101010010000001101010011101010111001101110100001000000110110001101111011100110111010000100000010101000110100001100101001000000100011101100001011011010110010100101110010110010110111101110101001000000110101001110101011100110111010000100000011011000110111101110011011101000010000001010100011010000110010100100000010001110110000101101101011001010010111001011001011011110111010100100000011010100111010101110011011101000010000001101100011011110111001101110100001000000101010001101000011001010010000001000111011000010110110101100101001011100101100101101111011101010010000001101010011101010111001101110100001000000110110001101111011100110111010000100000010101000110100001100101001000000100011101100001011011010110010100101110010110010110111101110101001000000110101001110101011100110111010000100000011011000110111101110011011101000010000001010100011010000110010100100000010001110110000101101101011001010010111001011001011011110111010100100000011010100111010101110011011101000010000001101100011011110111001101110100001000000101010001101000011001010010000001000111011000010110110101100101001011100101100101101111011101010010000001101010011101010111001101110100001000000110110001101111011100110111010000100000010101000110100001100101001000000100011101100001011011010110010100101110010110010110111101110101001000000110101001110101011100110111010000100000011011000110111101110011011101000010000001010100011010000110010100100000010001110110000101101101011001010010111001011001011011110111010100100000011010100111010101110011011101000010000001101100011011110111001101110100001000000101010001101000011001010010000001000111011000010110110101100101001011100101100101101111011101010010000001101010011101010111001101110100001000000110110001101111011100110111010000100000010101000110100001100101001000000100011101100001011011010110010100101110010110010110



Network Connecting Peer Insurers, Sources of Information & Expert Tools

Enabling Context-Driven Decisions



Claims Performance Data Visualization



WRAP-UP



Self Service, Mobile & Social

Geo-location, Visualization

Performance Guidance Leading Practices

Context-driven Decisions

Leverage New Technologies in Claims

Access & Collaboration

Catastrophe Management

Process Management

Better Data



Customer Service Excellence

Operational Efficiency

Lower Loss Costs

Business Agility

Address Key Claims Business Imperatives



Claims New Technology Landscape

Client expectations rising, but still ways to provide differentiating claims service

You can improve service and also reduce costs

Opportunities to adopt impactful new technologies and adapt claims processes

Robust modern core claims systems and processes form essential foundation

Smooth Fast Transparent Collaborative Fair


© Guidewire 2012. All rights reserved Presenting Sponsor: Produced By:

New Technology & Processes: The Claims Landscape

Neil Betteridge, VP Strategy, Guidewire [email protected]

mailto:[email protected]

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Neil Betteridge's Presentation Part 2