Extending Core Systems for CAT - IASA 2015/Sessions...Extending Core Systems for CAT Management...
Transcript of Extending Core Systems for CAT - IASA 2015/Sessions...Extending Core Systems for CAT Management...
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Extending Core Systems for CAT Management
Session 271
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Poll
Which of the following best describes your role?
Business Intelligence / Data / Analytics
Catastrophe Management
Claims Management
Information Technology
Underwriting
Other
About Me
• Enterprise software
• 100% P&C focus
• ~185 customers in >20 countries
• Not in marketing, sales, or development
• Armchair philosopher
• Focus on analytics
Eugene Lee VP, Data and Analytics
Core System Transformation: Just the First Step
Results in superior decisions, processes and customer experiences
Transformation Within and About
• Data entry / clerical file work • Answering queries • Standard correspondence
• Complex underwriting • Large losses • Litigation strategy • Employee mentorship
• Underwriting judgment • Decision audit • Liability judgment
• Issue resolution • Channel performance management • Negotiation
• Enforcement of process steps • File documentation • Assignment
Basic processing tasks
Procedural compliance
Interaction tasks
Best practice evaluation
Expert evaluation
Decisions (reporting & analytics)
Processes (core systems)
CAT Management Requires many Decisions
Line Manager CEO & Board Executive
1. How well are we
preventing and
managing CAT related
losses?
2. Post-CAT will we
retain our best
customers?
3. How can I reduce our
reinsurance costs?
1. Are we providing good
customer service?
2. How much exposure
do we have to this
CAT?
3. Are we making the
most of reinsurance
opportunities?
1. Which claims should
be pre-approved?
2. How many adjusters
/ vendors do I need
and where?
3. How can I proactively
help customers
prepare for / respond
to CAT?
1. Is this loss covered by
the policy?
2. Should this claim be
fast tracked?
3. Should I flag this claim
as potentially
fraudulent?
CSR
Core system user Not a core system user
Current view Historical, trending Type of data
Type of decision Tactical Strategic
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Poll
How effective is your CAT response program today?
Very Effective (we anticipate where claims will come from
and are prepared for them)
Somewhat Effective(depends on the catastrophe)
Not Effective (We handle claims as they roll in)
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
About Me
30 P&C industry veteran
Joined Hanover in 2000 as a Workers’ Compensation claim professional
Areas of Expertise: • core process redesign,
• legacy system trans-formation,
• vendor process implementation
• claim report development
Currently drives reporting strategy to improve information access that utilizes: • internal/external data sources
• modern reporting platforms
• advanced analytic solutions
Cathy Babiec Director, Claims Data Reporting & Analytics
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
The Hanover Insurance Group Background
In business over 160 years
Traded on the NYSE: THG
Based in Worcester, Mass.
One of the largest Property & Casualty insurers in the U.S.
Provides wide range of innovative P&C products and
services to businesses, individuals, and families through
select group of independent agents and brokers
5 regional claims offices within the United States
•Claims are segmented based on type of claim and region
•Property claims are primarily handled out of 2 regional
offices with a specialized Catastrophe operation
Hanover System Environment
ClaimCenter
Guidewire
Live
EDW
Predictive
Analytics
Enterprise
Analytics
Vendor Data
External Data
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
About Me
17 years IT experience; 5 in
P&C
Joined PURE in 2010; initial
focus on Claims IT function
Currently leads the IT Business
Partners and the Quality
Assurance groups at PURE
Joshua Bland VP, IT Program Management
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
PURE Insurance Background
High Net Worth Specialist
US Personal Lines
Writing since 2007
40%+ Growth YoY
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Pre-Catastrophe Management
Loss avoidance:
Proactive engagement
with policyholders
(“members”)
PURE Situation Room
PURE Member
Advocates
Guidewire Live
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Catastrophe Management
Use of Independent Adjusters to supplement the PURE
General Adjuster Team
• Both field and office based IA’s
Visualization software (Google Earth / Guidewire Live) used
to track PIF’s against peril path
• Wildfire
• Hurricane
• Tornado
Proactive outreach to potentially affected members who
have not reported a loss
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Poll
What is the most common data visualization technique
used to analyze CAT data?
Geo-visualization
Bar/line chart
Rows and Columns of numbers in a spreadsheet
Other
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Poll
Of the following, what is your biggest hindrance today to
effectively managing a CAT?
Lack of up to date data
Data quality
Integration of third party data sources
Policy and Claims data in silos
Not enough napkins
IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW
Poll
In your business, which of the following areas would
most benefit from better data and analytics?
Underwriting
Claims
Fraud Identification
Operational Efficiency
Other