201310 LexisNexis: P/C Claims - Innovating to Win


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Presentation for LexisNexis CAM on innovating to win in property casualty claims organizations with a focus on the value of analytics.

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201310 LexisNexis: P/C Claims - Innovating to Win

  1. 1. Claims Session 4 Innovating to Win 2013 Customer Advisory Meeting THE NOLAN COMPANY Presented to: Presented by: Dennis Sullivan Chairman and CEO Steven Callahan Practice Director September 18, 2013
  2. 2. Industry Faces Challenging Times Life Insurance Ownership Investments PC Claims Severity Regulation Competition Market Exits Technological Advances 2 LexisNexis® 2013 CAM: Innovating to Win
  3. 3. Combined Ratios Don’t Deliver The Same ROE Combined Ratio / ROE 18% 15.9% 110 106.4 14.3% 12.7% 105 100 97.5 10.9% 101.0 100.6 100.1 100.8 9.6% 99.3 95.7 95 7.4% 92.7 8.8% 15% 100.9 100.0 7.6% 12% 9% 6.6% 4.4% 4.6% 90 6% 3% 85 80 A combined ratio of ~100 generated an ROE of ~ 16% in 1979 10% in 2005 7.5% in 2009/2010 6.6% in 2012 0% 1978 1979 2003 2005 2006 2007 Combined Ratio 2008 2009 2010 2011 2012:9M ROE* Combined Ratios Have to be Lower in Today’s Investment Environment to Generate Same ROEs Source: Insurance Information Institute from A.M. Best and ISO data. 3 LexisNexis® 2013 CAM: Innovating to Win
  4. 4. Auto Claims Trends Indicative of Challenges • Average Paid Repairable Severity Trend from 2006 – 2012: Ø Ø Collisions Claims: $2,900 to $3,000 (increase started 2011, trend at $3,189) Comp Claims (Excl. Glass): $2,250 to over $3,000 • Claim Frequency: Ø Ø Collision claim frequency up 17.6% since 2006 Comp claim frequency up 17% since 2005 • Medical Cost Inflation: Ø 2002 to 2012 U.S. inflation increased 28%, medical inflation increased 46% • Distracted Driving Behavior – Impact on Frequency and Severity: Ø Ø Contributes to 16% of fatal crashes, 5000 fatalities/year (11 teen deaths/day) Texting causes 25% of car accidents; 600,000/year with 330,000 injuries/year Note: The two technologies for the potential biggest reduction in crashes are adaptive headlights and collision avoidance systems if perfected (NTSB). 4 LexisNexis® 2013 CAM: Innovating to Win
  5. 5. Increasing Customer Service Complexity Broader Generational Diversity Increasing Service Complexity The Digital Generations Five Generations of Consumers, consumers Wave Coming - powerful Large New (% of Total Population) High Tech Surge in Social Media Channels 5 LexisNexis® 2013 CAM: Innovating to Win Low Tech Increasing Ethnic Diversity
  6. 6. Service Offers Opportunities for Significant Returns Red = Lost Revenue / Customer Turnover Yellow = Incremental Revenue, Existing Customers Dark Blue = New Customer Revenue Light Blue = Net Change in Revenue Impact of CEM on Year over Year Revenue Change: Strong Customer Experience Management = Improved Revenue Net Up $84M Average Net Up $273M Best-In-Class 6 6 LexisNexis® 2013 CAM: Innovating to Win Net Down $43M Laggards
  7. 7. Driving Changes in Service Expectations and Strategies Increasing Customer Expectations • Immediacy / 24x7 access • Transparency • Personal service relationships • Language differences • Benchmarking performance within and outside the industry Company’s Areas of Focus Expanding Accessibility 100% Accelerating Service Delivery 96% Increasing Hours and Days of Service Availability 82% Creating Different Levels of Customer Service 63% Aligning Operations with Customer Markets 63% 7 LexisNexis® 2013 CAM: Innovating to Win
  8. 8. Including an Evolving Service Delivery Model One Size Fits All Individualized Service § Same service for all segments § Segmented customer needs and economic value § Over invest in some, under invest in others § Investment in service aligned with need/value tradeoff § One model to manage across lines and customers § Service differentiation varies by segment based on value § Differentiation at company level based on brand or channel § More models to manage, more challenging § Easier to match capabilities, one target to work with § Delivery is people based, harder to replicate 8 LexisNexis® 2013 CAM: Innovating to Win
  9. 9. And Greatly Empowered Customers Tens of thousands of positive service touchpoints a day, and yet one bad interaction… Today’s Customer 9 LexisNexis® 2013 CAM: Innovating to Win And suddenly your company is at the top of the tweets list telling thousands followed quickly by a Facebook “Unlike” Fan Page.
  10. 10. Surveys Indicate 4 Key Objectives for 2013 2013 Claims Objectives (low #=top priority) Reduce loss costs 1.88 Reduce LAE 2.18 Improve claim reserves 2.93 Improve customer service 0.00 3.01 0.50 1.00 1.50 2.00 2.50 3.00 3.50 Typical strategies to address these objectives • Indemnity • • • • • 10 • LAE Leakage reviews File reviews (open & closed) Redefine supervisor role Process redesign Predictive modeling LexisNexis® 2013 CAM: Innovating to Win • • • • • • • Customer Reengineering/TQM Spans of control Sourcing rationalization STP Lean Six Sigma BPO • • • Contact center redesign Satisfaction surveys Customer involvement
  11. 11. With Technological Challenges • Claims Systems (Claims Executive Survey): 11 LexisNexis® 2013 CAM: Innovating to Win
  12. 12. And Immediate Technological Investment Not Apparent Yet Claims systems still a lower priority in actual funded initiatives 12 LexisNexis® 2013 CAM: Innovating to Win
  13. 13. Industry Data Supports Budgets Constraining Solutions 4% less increasing, BUT 39% increasing Yes, 4% more decreasing Interestingly, 3% more uncertainty, most coming from the “Remain the same” responses 13 LexisNexis® 2013 CAM: Innovating to Win
  14. 14. Even When Funded Implementation is Complex Technology initiatives continue to face challenges according to survey $ - 5 of top 6 challenges are people issues (availability, expertise) The other one is budget, the place where people needs solved 14 LexisNexis® 2013 CAM: Innovating to Win
  15. 15. And Alignment of Needs with Approved Initiatives Mixed Process / workflow 2.47 New technology (all types) Claims Will Be Most Improved By (low #=top priority) 3.50 Effective claim audits • • • 3.75 Improved litigation mgmnt 4.58 ? Increase SIU resources 6.67 0.00 1.00 2.00 3.00 4.00 5.00 6.00 Claim Analytics 7.00 8.00 Claims Initiatives (high #=top priority) 52.4% Litigation Mgmnt 52.4% • • • 40.5% SIU Effectiveness New Claims System 28.6% Mobile Technology 15 27.4% LexisNexis® 2013 CAM: Innovating to Win Efficiency Technology Audits 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% Analytics Litigation Mgmnt SIU Effectiveness
  16. 16. “Innovating to Win” Requires Focused Achievability Even with all the amazing options, the foundation must be solid: 1. Claims Processing Systems Built on Best Practices ‒ ‒ ‒ Modular replacement if necessary; stepwise, wrap, LOB, or Bang Integrated and adaptable business rules, distributable (n-tier) Data adaptability, integrity/quality and accessibility 2. Ubiquitous Multi-faceted Analytics ― ― ― Straddle claims + underwriting + pricing + servicing + external data Integrated: FNOL, Adjusting, Subrogation, SIU, Recovery, Litigation From workflow to predictive modeling, key to loss management 3. Empowered Remote Capabilities ― ― 16 Customer apps for point of claim FNOL data capture, mobile service Adjuster toolsets: aerial imaging, photo capture, portable rules base, client access, GPS routing & tagging, real-time connectivity LexisNexis® 2013 CAM: Innovating to Win
  17. 17. 1. Claims Operations Best Practices Resource Management • • • • • • 17 Staffing Skillset Models SIU Staffing analysis Productivity Reporting Workforce Utilization Management Structured Change Management Methodology Formalized Communication Plans LexisNexis® 2013 CAM: Innovating to Win
  18. 18. 1. Claims Operations Best Practices Process Workflow • • • • • Claim service model design Optimized organizational structure Process workflow analysis / automation tools Claim Unit process interdependence/Interaction maps Claim cycle time minimization – Inspection to-repairs-to-settlement cycle time – Substitute rental vehicle cycle time & control 18 LexisNexis® 2013 CAM: Innovating to Win
  19. 19. 1. Claims Operations Best Practices Financial Analysis • LAE expense analysis & trending: • Loss cost analysis & trending: ― ― ― ― ― Averages / Trends Paid claims, recoveries, leakage Review of vehicle total loss process Direct repair facility evaluation Reinspection process and impact • Reserve management: ― ― ― 19 Averages / Trends Redundancy / Deficiency Methodology Review LexisNexis® 2013 CAM: Innovating to Win
  20. 20. 1. Claims Operations Best Practices Operations and Service • • • • • 20 Litigation management view Recovery management view Internal quality control process Claim manuals / guidelines Fraud impact / SIU effectiveness tracking LexisNexis® 2013 CAM: Innovating to Win
  21. 21. 1. Claims Operations Best Practices Vendor Management § § § § § § § 21 Legal Cost Management Process & Tools Independent Adjusters & Appraisers Medical Cost Containment Providers Medical Bill Review Vendors Damage Appraisal Software Vendors Glass Vendors Direct Repair Facilities LexisNexis® 2013 CAM: Innovating to Win
  22. 22. 1. Claims Operations Best Practices Litigation Management • • • • • • • • 22 Litigation claim file review (sampling) Litigation management program review and analysis Litigation unit staffing / productivity analysis Legal cost containment process review Suit Log process and effectiveness Analysis of suit volume vs. results Pre-suit avoidance techniques Utilization of Alternative Dispute Resolution (ADR) LexisNexis® 2013 CAM: Innovating to Win
  23. 23. 2. Ubiquitous Multi-faceted Analytics Analytics Contribute Throughout The Process SIU FNOL Assign Claim Evaluate Claim Fast Track Claim Negotiate Services 23 LexisNexis® 2013 CAM: Innovating to Win Initiate Settlement Update Claim Close Claim
  24. 24. 2. Ubiquitous Multi-faceted Analytics First integrate the automated consolidation of information External Consoldtd Accident Records Compiled Social Data Specialized Contributed Data FNOL Internal 24 LexisNexis® 2013 CAM: Innovating to Win U/W Info Key Srvce Info Assign Claim Prior Claim Info
  25. 25. 2. Ubiquitous Multi-faceted Analytics Analytics Starts Workflow: Identify, Segment, Prioritize Optimized Claims Adjudication process. § Using data mining to cluster and group claims by loss characteristics (such as loss type, location and time of loss, etc.). § Claims scored, prioritized and assigned per experience and loss type. § Higher quality, more consistent, and faster claims handling. Adjuster Effectiveness Measurement. § Adjusters typically evaluated based on an open/closed claims ratio. § Analytics for key performance indicator (KPI) reports of customer satisfaction, overridden settlements and other relevant metrics. Claims involving attorneys = 2X settlement and expenses. § Analytics to determine which claims are likely to result in litigation. § Assign to senior adjusters to settle sooner and for lower amounts. 25 LexisNexis® 2013 CAM: Innovating to Win
  26. 26. 2. Ubiquitous Multi-faceted Analytics Faster Processing: Lower Costs + Happier Customers Analytics help shorten the claims cycle times. § § § Claims cost 40% more if FNOL is delayed by 4 days. Auto accidents take average of 16.2 days to repair and return. Significant expense savings on rental cars, etc. for auto repairs. 37% Satisfaction going down CSI of 854 to 828 to 772 27% 36% JD Power, 2007 1 wk or less 8-14 2007 JD Power, days Over 2 wks Analytics drive higher Customer Satisfaction and Lower Costs 26 LexisNexis® 2013 CAM: Innovating to Win Overall CSI Index % of Claimants Duration and Customer Satisfaction are directly correlated. 854 828 772
  27. 27. 2. Ubiquitous Multi-faceted Analytics Subrogation Recovery Time Sensitive, yet often Secondary Recovery Rate Std / Pref Non Std Referral Days 15% of claims closed with a missed subrogation opportunity • How many collisions are paid with no PD payment and no referral to subrogation? • Monthly reviews of files closed with no recovery potential identified can yield significant returns 27 LexisNexis® 2013 CAM: Innovating to Win
  28. 28. 2. Ubiquitous Multi-faceted Analytics Subrogation Represents Immediate Impact Subrogation can be a missed opportunity at several points since it is usually not treated as a priority in claims payment metrics, often falling off radar post payment 28 LexisNexis® 2013 CAM: Innovating to Win
  29. 29. 2. Ubiquitous Multi-faceted Analytics Identifying Claims Fraud: A Tremendous Opportunity • About 10% of all insurance claims are fraudulent. Annual fraud losses for P&C industry total $30B in US alone $80 ‒ ‒ ‒ Detect unknown patterns of fraud. Keep track of new fraud schemes. Unsure exactly what to look for. $61 $64 $69 $74 e2013 e2014 e2015 Rules: Captures fraud on known patterns previously used Ex: Two claims in different time zones within short window Anomaly Detection: Detect unknown patterns (ind & aggr) Ex: Statistics (mean, std dev, uni/multivariates, regression) Advanced Analytics: Detect complex patterns Ex: Knowledge discovery, data mining, predictive assessment Social Network Analytics: Determine associative links Ex: Knowledge discovery via associative link analysis (entity map) SAS Institute 29 LexisNexis® 2013 CAM: Innovating to Win
  30. 30. 2. Ubiquitous Multi-faceted Analytics Prioritized investigation Focus on organized fraud Minimize claim padding Reduce false positives Fraud Referrals Fraud Referrals FNOL Assign Claim Re-estimate duration Reassess loss reserving Prioritize resources Fraudulent rescoring Review litigation propensity SIU Evaluate Claim Fast Track Claim Predict duration Forecast loss reserves Optimize fast track claims Prioritize resources Fraudulent scoring Litigation propensity 30 30 LexisNexis® 2013 CAM: Innovating to Win Negotiate Services Initiate Settlement Update Claim Close Claim Cross-sell options for satisfied customer Customer retention program Identify salvage and subrogation opportunities Indicate deviations from similar claims Reports on claims overrides
  31. 31. 2. Ubiquitous Multi-faceted Analytics Common Barriers to Using Analytics 31 31 LexisNexis® 2013 CAM: Innovating to Win
  32. 32. 2. Ubiquitous Multi-faceted Analytics Guidelines to Implementing Analytics All-executive panel agreed on three guiding principles: 1. Have an executive sponsored roadmap that clearly outlines. § What resources will be needed for how long, § Where and when predictive analytics will be used, § Which tools will be used, and § How will success be measured. 2. Use data that is comprehensive, accurate, and current. § Not necessarily 100%, some have used only 70%. Must be representative. 3. Staff with talented and engaged people. § Completely understand business problem and are proficient with analytics. § Every person does not have to meet both qualifications; a team can be used with some experts on the business and others experts on analytics. 32 LexisNexis® 2013 CAM: Innovating to Win
  33. 33. 2. Ubiquitous Multi-faceted Analytics 33 LexisNexis® 2013 CAM: Innovating to Win
  34. 34. 2. Ubiquitous Multi-faceted Analytics By leveraging the results of predictive analytics…Some industry experts indicate they can attain 5 to 12 percent improvement in loss costs and up to an additional 3 to 7 percent improvement in claim leakage. 34 LexisNexis® 2013 CAM: Innovating to Win
  35. 35. 2. Ubiquitous Multi-faceted Analytics 35 LexisNexis® 2013 CAM: Innovating to Win
  36. 36. 2. Ubiquitous Multi-faceted Analytics 36 LexisNexis® 2013 CAM: Innovating to Win
  37. 37. 2. Ubiquitous Multi-faceted Analytics 37 LexisNexis® 2013 CAM: Innovating to Win
  38. 38. 2. Ubiquitous Multi-faceted Analytics 38 LexisNexis® 2013 CAM: Innovating to Win
  39. 39. 2. Ubiquitous Multi-faceted Analytics 39 LexisNexis® 2013 CAM: Innovating to Win
  40. 40. 2. Ubiquitous Multi-faceted Analytics 40 LexisNexis® 2013 CAM: Innovating to Win
  41. 41. 2. Ubiquitous Multi-faceted Analytics 41 LexisNexis® 2013 CAM: Innovating to Win
  42. 42. 3. Empowered Remote Capabilities Enhanced Remote Capabilities • Cloud based web tools allow remote collaboration ― Cat and FNOL are proving areas facilitated by cloud based apps ― SharePoint, Office365 and Lync Online enable real-time interaction ― Integrating GPS, Google Earth and similar apps with local presence has enhanced claim reporting and reduced cost of detail data ― Direct connection to Home Office staff and systems puts full power of office systems in the field • Two-pronged strategy: first empowered clients ― ― Add ability to request nearest contracted tow service & line up a rental car, result delivers service excellence and operational efficiency ― The cost and effort required to put this type of app in place is less than imagined. ― 42 Leverage mobile technology to create local presence reporting Numerous examples of FNOL Apps exist today for clients who can choose to build one, like Allstate & AIG LexisNexis® 2013 CAM: Innovating to Win
  43. 43. 3. Empowered Remote Capabilities Adjuster Toolkits: Accelerating Critical Service • Adjusters (and inspectors for UW) benefit from remote toolsets connected to the cloud and home office ― ― On client, street level views, coverage history, claims data, financial info, loss details, incident histories, red flag indicators, contact info ― Collection, submission, video review and determination possible on the spot, even payout depending on available equipment (mobile deposits) ― Accelerates FNOL, improves accuracy and timeliness, reduces field adjustment burden, reduces data entry, collection and indexing ― 43 GPS mapping, aerial inspections when needed, real-time photo of accident scene, video for teleconference, preloaded rules for assessment Add ability to request nearest contracted tow service and line up a rental car, and the result delivers on both the service excellence and operational efficiency goals set out at the beginning. LexisNexis® 2013 CAM: Innovating to Win
  44. 44. 3. Empowered Remote Capabilities A Day in the Life of an Adjuster • Adjuster receives claim notification via email and an alert including contact information. Direct to field process enables impressive, quick response to claims. ― • A call is made, appointment set, maps accessed and the GPS navigator engaged. ― Upon arrival, accident scene and damage photos are taken, key party info all fed directly back to the home office claims system. ― One of several estimating tools is accessed • • ― Diagramming automated using laser measurements and square foot calculators Depreciation allowances, location mapping and statements of loss created. Aerial imaging incorporates birds eye view into the claim data • • Same aerial images available from home or regional claims centers to confirm collected information or determine any need for manual refinements. Historical pre-damage views might also be available for comparative purpose • These services are available today on laptops transitioning to pad or phone apps moves to more convenient level. 44 LexisNexis® 2013 CAM: Innovating to Win
  45. 45. 3. Empowered Remote Capabilities Specialty Lines Apps Arising • Award winning for racehorses ― ― includes the ability to search out the nearest qualified vet ― provides contact information and a map from current location ― LexisNexis® 2013 CAM: Innovating to Win submits FNOL information when a covered race horse is injured ― 45 assists in determining coverage applicability and levels only cost the carrier $25,000 to develop
  46. 46. 3. Empowered Remote Capabilities Special Weather Apps to Assist in Adjusting Claims • Newly released HailSpot to capture immediate hail data ― ― geo-locates exact address mapped to weather history for spot ― helps prevent paying for pre-existing damage based on exact dates ― 46 enter location and DOL, get up to 10 years of hail size and duration combined with rules base, recommends replace, repair or deny LexisNexis® 2013 CAM: Innovating to Win
  47. 47. 3. Empowered Remote Capabilities Industry Innovations Rising to Meet New Challenges Technology Climate Corp. Updates Crop Insurance via High Tech By Ashlee Vance March 22, 2012 47 LexisNexis® 2013 CAM: Innovating to Win Staffed by an army of data scientists, the company is bringing data analytics to rural America and helping farmers reap more consistent profits from their fields. It’s an example of how cloud computing, modeling, and other technologies that have reshaped the Web and business are now revolutionizing more traditional industries. “Software is going to fundamentally change how the world operates,” says David Friedberg, Climate’s chief executive officer and co-founder.
  48. 48. 3. Empowered Remote Capabilities Industry Innovations Rising to Meet New Challenges Crash Avoidance Technologies Reducing Accidents, Saving Lives New study shows “clear success” of collision warning, auto braking, adaptive lighting systems. by Paul A. Eisenstein on Jul.03, 2012 48 LexisNexis® 2013 CAM: Innovating to Win
  49. 49. 3. Empowered Remote Capabilities 49 LexisNexis® 2013 CAM: Innovating to Win
  50. 50. 3. Empowered Remote Capabilities 50 LexisNexis® 2013 CAM: Innovating to Win
  51. 51. 3. Empowered Remote Capabilities 51 LexisNexis® 2013 CAM: Innovating to Win
  52. 52. 3. Empowered Remote Capabilities 52 LexisNexis® 2013 CAM: Innovating to Win
  53. 53. 3. Empowered Remote Capabilities 53 LexisNexis® 2013 CAM: Innovating to Win
  54. 54. 3. Empowered Remote Capabilities 54 LexisNexis® 2013 CAM: Innovating to Win
  55. 55. 3. Empowered Remote Capabilities 55 LexisNexis® 2013 CAM: Innovating to Win
  56. 56. 3. Empowered Remote Capabilities 56 LexisNexis® 2013 CAM: Innovating to Win
  57. 57. 3. Empowered Remote Capabilities Apps Proliferating Across LOB’s and Functions Workers Compensation app Construction estimating app Home inspectors app Property inspection app 57 LexisNexis® 2013 CAM: Innovating to Win USAA Auto insurance app
  58. 58. 3. Empowered Remote Capabilities Mobility Strategies: Have A Framework for Mobile Solutions The organization’s mobile computing strategies must be developed for: Audience: Who will use the mobile device capabilities? • Drives Design Alternatives • Drives Deployment options • Employees, Business Partners, Providers, Customers, general public Devices: Target devices and device ownership? Data Security: What data will they have access to? • Drives Security Requirements • Drives Deployment options • Drives Security Requirements • Drives Architectural Solutions • Company provided • Current application data? Historic Data? • End user provided – devices specified by company • Policy / Claim History Information • Technical features may vary by audience (Email, device wipe, device profile ,MDM software) • End user provided – device independence • Data Sensitivity : payment and health information (PHI,HIPAA), PCI) Each different user group will require different security controls and access BYO – Bring your own – requires significantly more robust availability Must have the capability to secure and remove data in case of device loss 58 LexisNexis® 2013 CAM: Innovating to Win 58
  59. 59. 3. Empowered Remote Capabilities Mobility Management: Use Framework to Control Execution Idea for Mobile App High Level Reqmts STEP I STEP II Business Case Select from Library of Usage Patterns • Project is submitted via the IT prioritization process • CBAs validate • Business case is made to deploy via mobile devices • Project is approved, prioritized & scheduled • • • • Audience Served (user) Device Ownership Supported Devices Information Security (where is the data stored) Deliverable Vision & Scope 59 STEP III Evaluate Functional Fit Consumer No PCI/PHI My PCI/PHI Android Mobile App Mobile Web Public Store Android Application Deliverable High Level Architectural Framework LexisNexis® 2013 CAM: Innovating to Win Multiple PCI/PHI Virtual App Internal Store Push Mobile Application Deployment & Support Model Mobile Browser Desktop Web Pull Non-Resident Citrix* Web Device 2 OS/ 3 App • Schemas are standard patterns used to guide mobile development choices based on the business case Mobile Policies & Standards Tablet iPhone/iPad Support Level Build Plan 3rd Party or Personally Owned Smart Phone iStore STEP IV 3rd Party/Partner Associate Company-Owned Additional Considerations to address as part of the business case are: Low Level Reqmts 2 OS/ 2 App • Evaluate form factor (smart phone or tablet) • Identify security or functional requirements that are non-standard • Evaluate deployment model for usability (e.g. mobile web, resident app) Deliverable Framework tailored to opportunity Client SDLC 59 Security Review 1 OS/ 1 App Device Testing Needs • Mobile Specific build, deploy, and support needs for the finalized schema Deliverables Client Standard SDLC Artifacts Production Mobile App
  60. 60. Challenges: Why companies aren’t using analytics. Issues Other Underlying Challenges • Typically at the C-Level • Visibility • Building the case – • Getting the buy-in across many areas • Noise / too many corporate priorities Ø Cost / Funding / Competing Priorities • Resource constraints • Technology programs outside of these effort which are taking up resources • Access and quality of data • Sources • Silos • Insufficient What are your specific challenges? 60 LexisNexis® 2013 CAM: Innovating to Win
  61. 61. Avoid Analysis Paralysis 61 LexisNexis® 2013 CAM: Innovating to Win
  62. 62. Strategies being deployed • Building the case Ø Incremental vs. “Big Bang” Ø Addressing resource constraints (third-party sourcing with internal buy-in Ø Overcoming the serial approach (Distribution, Products, Administration, then Claims) – 80% of the costs are in claims Ø Incremental approach to integration issues, current architecture • Cost / Benefit / Funding Ø Incremental approaches (Pilot efforts) Ø Pay as you go Ø Measure early results • When getting the pushback Ø 62 Use your own data and apply the analytics to demonstrate benefits LexisNexis® 2013 CAM: Innovating to Win
  63. 63. Have a plan to manage change! Levels Change Process “Engage the Top and Lead the Change” Make the case for change Build the leadership team Craft the vision Set the direction “Cascade Down and Break Barriers” v v v v Pick the change leaders Create cross-functional teams Embrace new ideas Empower the change leaders “Mobilize the Base and Create Ownership” 63 v v v v v v v v Roll-out a change program as a base Train the trainers Change key processes Measure the change LexisNexis® 2013 CAM: Innovating to Win
  64. 64. Key Strategies for the Future • Education: Your organization needs to know what it means to become data driven and customer focused. • Differentiate service with measurable data. • Expand and capitalize on your customer relationships. • Technology investments need to show new revenues and reduce expenses. • Break down management silos to become responsive to the market – Team Approach. 64 LexisNexis® 2013 CAM: Innovating to Win
  65. 65. Questions? If Not: Thank you for your time. Enjoy the rest of the conference and have a safe trip home. Dennis Sullivan Chairman and CEO www.renolan.com The Nolan Company dennis_sullivan@renolan.com 65 LexisNexis® 2013 CAM: Innovating to Win Steven Callahan Practice Director The Nolan Company steve_callahan@renolan.com