Edgewater Technology and ISO Webinar - Increasing Agent Policy Submissions

The Agent Experience “Reaching The Summit” Tuesday, January 17, 2012

Presenting today… Philip Monahan Todd Meyer Principal Consultant Senior Consultant Edgewater Technology, Inc. ISO Rating Solutions Jeff Lopata CIO Preferred Mutual Insurance

Agenda • Insurance Business Environment • ISO Rating Solutions • Integration Options And Challenges • Case Study • Preferred Mutual Insurance Company • Q&A

Edgewater• Founded in 1992• Publicly traded (NASDAQ: EDGW)• 400+ employees• Over 3100 Projects Delivered in 19 Years• Large North American footprint • New UK presence• Focus on upper-middle and global 2000 markets

Insurance Services Office• Formed in 1971 as a not-for-profit advisory and rating organization for the U.S. property/casualty industry• Headquartered in Jersey City, New Jersey, U.S.A., with offices throughout the world• 4,000+ employees• Trading under parent “VRSK” on NASDAQ• Industry expertise to guide development of analytic solutions for specific customer needs o Insurance pricing, underwriting, and insurance claims analysis o Financial services risk mitigation and fraud detection o Healthcare claims analysis and fraud detection o Climate and environmental impacts and risk assessment

Insurance Business Environment • Soft Market • Compliance Requirements • Flexibility • IT Cost Reduction • Web Enablement/Self Service • IT Key Differentiator

Remaining Competitive• Carriers Must: o Achieve agility and cost effective integration with internal systems o Provide flexible, secure, easy access for agents and consumers o Increase automation to improve discipline and efficiency, reduce error rates and minimize manual review o Improve Agency Integration o Speed the time to market for new insurance products and coverages o Reduce cost of change

ISO Rating Solutions ► ISO Electronic Rating Content – your jumpstart ► ISO Rating Service – your fully-automated solution

ISO Rating Service•Enables a single rating solution for multiple ISO and non-ISOprograms•Incorporates ISO-interpreted content•Utilizes a powerful content inheritance model that allowscompany-customized rating deviations and state exceptions•Streamlines delivery of ISO content updates via ISOnet•Open platform – works with any Policy Administration System•Works with web services and queues to fit in Service OrientedArchitecture

How does the ISO RatingService address this challenge? Powerful Toolset Rating Engine ISO Rating Service ISO-Defined Rating Ongoing Maintenance Content

ISO-Interpreted Content Advisory loss costs Rules Forms attachment logic Statistical code assignment

Single Rating Solution ISO Rating ServiceCommercial Lines Personal Lines Workers Compensation• Commercial Auto • Personal Auto • Bureau States• General Liability • Homeowners • Independent States where• Commercial Inland Marine permitted)• Nonfiled Inland Marine• Commercial Umbrella• Commercial Property• Crime and Fidelity• Commercial Package Policy• Businessowners

Development ProcessDeviation Countrywide State Mapping Services Rating Assemblies Analysis MappingEstablish Create Install EngineDatabase Ratebooks

Integration Challenges ► Legacy Modernization – Mainframe, Client Server – Compatibility – Flexibility ► Custom User Interface – Internal vs. External facing – System Response – Multi-system integration ► Existing Back Office Systems – Document Generation – Data Dependence – Accounting

Preferred Mutual Project

Preferred Mutual► In Business > 100 years► Mid-Size Carrier► $230M DWP► Commercial Lines► Personal Lines► 4 states

Project Stats► LOB’s: BOP and Commercial Auto► States: 4 - NY, NJ, NH, MA (BOP only)► DWP: – BOP - $17.5m – Auto - $8.5m► Duration: 9 months► Project Team: Joint Preferred Mutual/Edgewater resources

Integration Points ► Custom Agent User Interface with 400 Agents ► Mainframe ► QuickFill ► Credit Score ► MVR ► Claims History ► Middleware Tools/Technology – BizTalk

Realized Benefits► Results – Growth • Prior to implementation, Preferred lost nearly 15% of commercial automobile book (2007-2009) • In the last 18 months (through 2011) recovered all of the 15 % lost in prior years • Prior to implementation, Preferred lost nearly 4% of BOP book (2007-2010) • In the last 12 months (through 2011) has grown nearly 13% (not including our largest state that went into production in October of 2011)

Realized Benefits ► Agent Comments – Easy to use – Great workflow ► Increase In Submitted Applications ► Policies More To Appetite – Use of underwriting rules engine controls submissions

Best Practices ► Manage expectations – Be ready to address the challenges ► Build the right Team – Project Management, Partners / Vendors – Business Knowledge ► Play to your strengths & be realistic about your weaknesses ► Minimize risk in all areas – Requirements, Development, Conversion and Rollout

Contact Information► Philip Monahan Principal Consultant Edgewater Technology PMonahan@edgewater.com (781) 213-9827► Todd Meyer Senior Consultant ISO Rating Service Todd.Meyer@iso.com (513) 886-0636► Jeff Lopata CIO Preferred Mutual Insurance Jeffrey.Lopata@preferredmutual.com (607) 847-6161

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Edgewater Technology and ISO Webinar - Increasing Agent Policy Submissions

by Edgewater on Jan 18, 2012

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Edgewater Technology and ISO Webinar - Increasing Agent Policy Submissions — Webinar Transcript