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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
© Blue Slate Solutions 20091
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
© Blue Slate Solutions 20092
toward demonstrable ROI
Some Hurdles We Encounter
1. New Channels for Growth
2. Competitive Environment
3. Data Management
4. Aging Applicationsg g pp
© Blue Slate Solutions 20093
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
© Blue Slate Solutions 20094
At A Glance
Hurdle 1: New Channels for Growth
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
© Blue Slate Solutions 20095
At A Glance
Hurdle 1: New Channels for Growth
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
© Blue Slate Solutions 20096
Some Hurdles We Encounter
1. New Channels for Growth
2. Competitive Environment
3. Data Management
4. Aging Applicationsg g pp
© Blue Slate Solutions 20097
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
© Blue Slate Solutions 20098
Hurdle 2: Competitive Environment At A Glance
A h
Our ClientA BI Top 100 broker, needs
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
© Blue Slate Solutions 20099
Hurdle 2: Competitive Environment At A Glance
Our ClientA BI Top 100 broker, needs
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
© Blue Slate Solutions 200910
Some Hurdles We Encounter
1. New Channels for Growth
2. Competitive Environment
3. Data Management
4. Aging Applicationsg g pp
© Blue Slate Solutions 200911
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
© Blue Slate Solutions 200912
At A Glance
Hurdle 3: Data Management
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
© Blue Slate Solutions 200913
At A Glance
Hurdle 3: Data Management
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
© Blue Slate Solutions 200914
• Data management expertise
Some Hurdles We Encounter
1. New Channels for Growth
2. Competitive Environment
3. Data Management
4. Aging Applicationsg g pp
© Blue Slate Solutions 200915
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
© Blue Slate Solutions 200916
At A Glance
Hurdle 4: Aging systems
Our ClientPremier Regional insurer
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
© Blue Slate Solutions 200917
At A Glance
Hurdle 4: Aging systems
At A Glance
Our ClientPremier Regional insurer
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
© Blue Slate Solutions 200918
“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
© Blue Slate Solutions 200919
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
© Blue Slate Solutions 200920