PCI IT conference 2009

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PCI IT conference 2009

  1. 1. Hurdles to Your Success Insurance companies use process improvement, technology, and data solutions to effectively operate and create competitive advantages PCI 2009 Information Technology Conference Tucson, AZ October 4-7, 2009 © Blue Slate Solutions 2009
  2. 2. About Blue Slate Solutions • We i W improve operations: optimize processes, ti ti i connect disparate systems, introduce relevant Technology technologies, manage data • Clients include leading Insurance companies and b k d brokers who seek t i h k to increase efficiencies, ffi i i Solutions simplify systems, lower cost, improve service and retain customers Data Process • Experience across the full spectrum of Insurance industry f I i d t functions and departments – ti dd t t Project and Change front and back office Management Shawn Firehock Mike Farley Rick Barnett • Managing Director • Consultant • Founder and CEO • Led Insurance practice • 12 years of underwriting, • 20 years general for major software brokerage and agency management and business g company experience leadership • Leads Client Delivery • Former agency owner • Operational Finance leader team • Certified Public Accountant © Blue Slate Solutions 2009 1
  3. 3. 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 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 2009 2
  4. 4. Some Hurdles We Encounter 1. New Channels for Growth 2. Competitive Environment 3. Data Management 4. Aging Applications g g pp © Blue Slate Solutions 2009 3
  5. 5. Hurdle 1: New Channels for Growth At A Glance Our Client Global commercial insurer wanted to open Challenges an online channel in the • Lower cost competitors beginning to capture brokers Worker’s Comp Market and customers • Administrative costs on the rise • “Legacy” policy issuance system did not have a web channel to meet market opportunity © Blue Slate Solutions 2009 4
  6. 6. Hurdle 1: New Channels for Growth At A Glance Our Client Global commercial insurer wanted to open an online channel in the Worker’s Comp Market Approach • Integration with existing p g g policy administration y application 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 2009 5
  7. 7. Hurdle 1: New Channels for Growth At A Glance Our Client Global commercial insurer wanted to open a breakthrough online channel in the Worker’s Comp Market Solutions Success! • Created platform to • In production within 100 days capture new business • Reduced broker policy issuance process from days potential to minutes • Leverage Legacy Investments and Best • Gave business users the ability to change rules in Practices real-time • Business Rule • Catalyst that fueled revenue growth by over 300% Management and g Maintenance © Blue Slate Solutions 2009 6
  8. 8. Some Hurdles We Encounter 1. New Channels for Growth 2. Competitive Environment 3. Data Management 4. Aging Applications g g pp © Blue Slate Solutions 2009 7
  9. 9. Hurdle 2: Competitive Environment At A Glance Our Client A BI Top 100 broker, needs to eliminate manual data Challenges entry to grow and t t d • Iterative manual data entry is expensive and an profitably serve its clients E&O exposure • Legacy data migration risks with new technology g y g gy acquisition • 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 © Blue Slate Solutions 2009 8
  10. 10. Hurdle 2: Competitive Environment At A Glance Our Client A BI Top 100 broker, needs to eliminate manual data Approach A h entry to grow and t t d profitably serve its clients • Mapped and optimized processes to prepare for technology selection • Facilitated F ilit t d vendor t l selection process b d tool l ti based on d client’s requirements, priorities and budget • Established technology road map to achieve envisioned state • Selected technologies to support business process and that produced the best value (ROI) Next steps… • Implementation of selected solution to automate processes and consolidate data © Blue Slate Solutions 2009 9
  11. 11. Hurdle 2: Competitive Environment At A Glance Our Client A BI Top 100 broker, needs to eliminate manual data entry to grow and t t d profitably serve its clients Solutions • Detailed understanding g Success! of client environment and unique challenges • Line of business will be able to grow without adding • Provided unbiased third p personnel party assessment with • Employees will be able to spend more time on the client success forefront high value task of serving customers instead of • Technology Selection performing clerical work Aligned with Business Process Vision Business Vision, • Accuracy will be improved – E&O exposure reduced Rules and Budget • Customers will be more tightly coupled with the client © Blue Slate Solutions 2009 10
  12. 12. Some Hurdles We Encounter 1. New Channels for Growth 2. Competitive Environment 3. Data Management 4. Aging Applications g g pp © Blue Slate Solutions 2009 11
  13. 13. Hurdle 3: Data Management At A Glance Our Client A Top 3 Global financial services conglomerate Challenges had an 8 terabyte • Legacy platform (20+ years) inhibiting progress legacy data “blob” – Proprietary data format where information was not visible or actionable • Capacity to report to regulators and markets was p y p g impaired • Growth was constrained -- stability and agility were not reliable • Perform migration to new platform with no impact on users © Blue Slate Solutions 2009 12
  14. 14. Hurdle 3: Data Management At A Glance Our Client A Top 3 Global financial services conglomerate had an 8 terabyte Approach legacy data “blob” where information was • In performing as-is system analysis, re-engineered 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 2009 13
  15. 15. Hurdle 3: Data Management At A Glance Our Client, A Top 3 Global financial services conglomerate had an 8 terabyte y Success! legacy data “blob” where information was • Decoupled data from system for maximum usage not visible or actionable • Data was converted into information available to all Solutions systems and for standard analytics and reporting • In depth understanding – 8 Terabytes of transaction data serving 3500 users of existing platform to worldwide and support 1600 concurrent users strategize migration • Over $4 million of annual VAX maintenance costs • L Leveraged cutting edge d tti d were eliminated webservices technology • Increased stability, speed and efficiency in a to maintain business logic while evolving scalable manner functionality f ti lit • Provided framework for growth – easy to add other • Provided stable and business units scalable framework with increased capability • Data management expertise © Blue Slate Solutions 2009 14
  16. 16. Some Hurdles We Encounter 1. New Channels for Growth 2. Competitive Environment 3. Data Management 4. Aging Applications g g pp © Blue Slate Solutions 2009 15
  17. 17. Hurdle 4: Aging systems At A Glance Our Client Premier Regional insurer needed to integrate its Challenge broker centric web • Legacy investments were made in “silos” portal to the rest of its systems utilizing • The systems can’t share intelligence existing resources that • Each function wants to control their own system system, weren t weren’t designed to and can’t step away from the day to day activities accept it to think about longer term solutions • Opportunity to expand business limited by system inflexibility © Blue Slate Solutions 2009 16
  18. 18. Hurdle 4: Aging systems At A Glance Our Client Premier Regional insurer needed to integrate its broker b k centric web ti b portal to the rest of its Approach systems utilizing • Mapped appropriate ACORD data schema to meet existing resources that client’s needs weren’t d i ’t designed t d to accept it • Leveraged a component architecture to leverage existing investments and create best in class solutions • Built solution in a manner that would allow the business team to manage the rules © Blue Slate Solutions 2009 17
  19. 19. Hurdle 4: Aging systems At A Glance Our Client Premier Regional insurer needed to integrate its broker centric web portal to the rest of its Success! systems utilizing existing resources that • Client established market leading web based agent weren’t designed to services accept it • Client established infrastructure and workflows to Solutions integrate existing systems while preparing for their • RRepresentation of t ti f eventual upgrade business, technical and • Business team can change the rules parameters broker needs with less IT involvement, reducing costs, • Business Intelligence increasing business ownership of their systems, and Rules leveraged in architecture with and improving market responsiveness existing systems • Agent perception of web capabilities moved from • Data Conversion and “worst” to “one of the best” Aggregation © Blue Slate Solutions 2009 18
  20. 20. Winning strategies to transform challenges to opportunities • Identify and prioritize opportunities, formalize and execute as projects • Include business and technical leaders for solution implementation • Cross-functional teams will succeed with strong g governance models • Evaluate current state and map to desired state • Leveraging existing technology • Optimize processes, use business rules, and standardize data to drive efficiency and agility • Ensure any software or hardware introductions are relevant and appropriate for maximum impact pp p p © Blue Slate Solutions 2009 19
  21. 21. Talk to us about the challenges you face…. Erica Coletti Chris Garber • erica.coletti@blueslate.net @ • chris.garber@blueslate.net g @ • 518.929.1293 • 518.369.4892 Mike Farley • michael.farley@blueslate.net • 802.379.1456 Rick Barnett Shawn Firehock • rick.barnett@blueslate.net • shawn.firehock@blueslate.net • 518.339.4073 • 518.573.6410 © Blue Slate Solutions 2009 20

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