Web-enable American Modern’s Insurance offerings; promote them through a ubiquitous, user-friendly, easy to use business offering and processing model. Enable new capabilities and processes through “Legacy” replacement for: Product Development Rating, Pricing and Underwriting Policy Administration Processing Partner Relationship Management Customer Management Develop a Knowledge Management Architecture to support the initiatives named above
The anticipated returns of this business case are as follows: 20% annual increases in directly-attributed new business 37% of Policy and Partner Administration moved from existing customer care functions directly to point of service functions 25% improvement in current Product Review and Management cycle time 21% improvement in Product Filings cycle time 2% reduction in total loss ratio directly attributed to modernLINK initiative These returns would yield a significant recurring annual benefit through additional premium, increased profit, and decreased expenses. Almost 50% of these benefits would be attained through better knowledge/data management, richer data segmentation, and improved data and risk selection. John Hayden, President and CEO, American Modern states: We must have accurate data about the risks we insure today if we are to ever be successful in establishing The Right Rate for Every Risk we choose to insure in the future. These returns would yield significant recurring annual benefits through additional premium, increased profit, and decreased expenses. Almost 50% of these benefits would be attained through better knowledge/data management, richer data segmentation, and improved data and risk selection.
These returns would yield a significant recurring annual benefit through additional premium, increased profit, and decreased expenses. Almost 50% of these benefits would be attained through better knowledge/data management, richer data segmentation, and improved data and risk selection. John Hayden, President and CEO, American Modern states: We must have accurate data about the risks we insure today if we are to ever be successful in establishing The Right Rate for Every Risk we choose to insure in the future. These returns would yield significant recurring annual benefits through additional premium, increased profit, and decreased expenses. Almost 50% of these benefits would be attained through better knowledge/data management, richer data segmentation, and improved data and risk selection.
As part of the Enterprise Architecture Transformation initiative, American Modern created a roadmap to develop: This Knowledge Management architecture would provide the company with the ability to monitor, measure, and analyze existing business, refine and improve current practices, and identify new opportunities.
Now in its seventh year, the Knowledge Management architecture has delivered significant results. Today, our business units can make informed business decisions, respond quickly to new business initiatives, and create new opportunities because of the tools and information provided. They are moving from data collectors to data consumers. Business users have information delivered to their desktops in the form of reports, analytic cubes, and maps. This new ability to ask “why ,” instead of “ wha t,” will enable American Modern to transform itself into a learning organization.
Here is what they say:
Not only have we received internal recognition, but external as well
• IBM RS6000 AIX processors • EMC data storage • Oracle DBMS • COGNOS for reporting utilizing query, report, mapping and analytical tools • Websphere Portal • LDAP for single sign-on
The business units within American Modern have wholeheartedly embraced the Enterprise Data Warehouse. It has even taken on a life of its own – it appears to be able to do almost anything For the first time, they have been able to get a holistic view of information in one place. In addition, American Modern is ready to embark on its next phase of delivering information to its external business partners using the same architecture.
SWOC DAMA 2008 Showcase at American Modern Insurance February 21, 2008
The organization believes that the strategic deployment of technology can help it achieve, and sustain, a competitive advantage.
As stated in its Operating Principles, “Our investment in information technology is part of a carefully planned strategy to ensure that American Modern's company-wide infrastructure is among the most advanced in the specialty insurance industry.”
American Modern Insurance Initiative Background
In 2000, American Modern embarked upon long-range initiative, coined “modernLINK,”
American Modern Insurance Knowledge Management Results
Business users can:
Make informed decisions
Respond quickly to new business initiatives
Create new opportunities
Business users are:
Moving from data collectors to data consumers
Asking “why” instead of “what”
American Modern Insurance Knowledge Management Results
Retention – Joe David. In the last four years, we have leveraged the corporate reporting tools to develop a series of targeted strategies that have allowed us to improve retention by nearly eight points, which equates to annualized premium of nearly $60 million
Claims. Integration of 3 rd party Claim data - Heather Bolyard. This one-month sample of data for one material has identified a potential indemnity reduction of $70,000.
Reserving – Gene Stetler. The new Loss Reserving data store from the Enterprise Data Warehouse has enabled process efficiencies, thus allowing us to predict our reserving needs with accuracy.
Product – Kevin Randall. The implementation of American Modern's data warehouse has been a significant part of the successful launch of the company's right rate for every risk initiative
American Modern Insurance 2007 Awards and Recognition
In 2007, American Modern received two awards from Computerworld:
Laureate - The laureate status for the Enterprise Data Warehouse presented at the Carnegie Mellon Auditorium in Washington D.C – June 2007
BI Award - Best Practices in Business Intelligence in the category “Creating an Agile BI Infrastructure” presented in Las Vegas, NV – September 2007
Enterprise Data Warehouse The data warehouse will support: Loss Cost Analysis Retention Analysis modernLINK Reporting Profitability Analysis Data Warehouse Underwriting Analysis Product Pricing Analysis Financial Analysis
Data Warehouse Value MH Loss Cost SB Loss Cost MC Loss Cost Retention UVRC Pricing / GLM Loss Triangles modernLINK MH PIF mLINK vs. Legacy Retro Studies Mapping Renewal Reporting FID MSB CAT Analysis Cancellation Reporting Address Data Agency Profile Analysis Claims Liability Partner Experience Reporting
Data Warehouse Statistics 1997 policies used to seed warehouse: ~700,000 Total policies Jan 1998 thru Jun 2007 Total units Jan 1998 thru Jun 2007 Average Number of Coverages per policy: 5 Average number of policies in-force per month: 800,000 Average number of claims per month: 8,000
Provides a common, integrated way for the corporation to view and to communicate about its business
Allows the business to drive the system
Creates standard definitions/documentation
Provides structure to new development projects
Enterprise Data Model Quotes/Policies Claims Coverages Accidents/Violations Homes/Vehicles UW rules Makes/Models Geography Address Insureds Operators Lienholders Claimants Things Places People
Jump Start Enterprise Data Model Acord Standards Generic Model based on Insurance Industry Practices Transform AMIG Specific Requirements Integrated View: Common Data Definitions Across business Manufactured Home Site Built Motorcycle Motor Home Travel Trailer Classic Auto FID Commercial AMIG Enterprise Data Model
Data Warehouse (normalized) Loss Cost DataMart (star) Conformed Dimensions Pricing DataMart (star) Retention Mart (star) “ The 38 Subsystems of ETL”, Ralph Kimball http://www.intelligententerprise.com/showArticle.jhtml?articleID=54200319
Source (OLTP) CATastrophe DataMart (star) Staging Area daily daily Daily Conformed Dimensions daily daily “ Kimball Design Tip #34: You Don’t Need an EDW”, Ralph Kimball http://www.kimballgroup.com/html/designtipsPDF/DesignTips2002/KimballDT34YouDontNeed.pdf
“ The staging area is exactly like the kitchen in a restaurant. The kitchen is a busy, even dangerous, place filled with sharp knives and hot liquids. The cooks are busy, focused on the task of preparing the food. It just isn't appropriate to allow diners into a professional kitchen or allow the cooks to be distracted with the very separate issues of the fine dining experience. ”
Two Powerful Ideas: foundations for modern data warehousing, Ralph Kimball Sept 17, 2002: http://www.intelligententerprise.com/020917/515warehouse1_1.jhtml