Swoc21 Feb08 Amig

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  • 1. SWOC DAMA 2008 Showcase atAmerican Modern Insurance February 21, 2008

2. Showcase Agenda

  • Background/Business Case
    • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
    • 20 minutes Latha Subramanian
  • Data Model AIIM
    • 20 minutes Duke Ganote
  • Information Management AIIM
    • 20 minutes Dan Daly
  • Q& A Duke/Sandy/Latha/Dan
    • 20 minutes

3. American Modern Insurance Company Background

  • Founded in 1938 as a consumer finance company
  • Provider of highly focused, specialty insurance products
  • Positioned to grow into a multi-billion dollar organization
  • Entrepreneurial spirit & deep commitment of employees
  • Approximately 1200 employees country-wide, with 1000employees in eastern Cincinnati area (Amelia)

4. American Modern Insurance Company Background

  • 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.

5. American Modern Insurance Initiative Background

  • In 2000, American Modern embarked upon long-range initiative, coined modernLINK,
    • Business and IT collaboration
    • Business case and funding
  • Three prongs:
    • Web-enable insurance transaction processing
    • Replace aging legacy processing systems
    • Develop a Knowledge Management architecture

6. American Modern Insurance Business Case

  • The anticipated returns of this business case were:
    • 20% annual increases in directly-attributed new business
    • 37% of Policy and Partner Administration moved from existing internal units directly to point of service
    • 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

7. American Modern Insurance Business Case

  • 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.

8. American Modern Insurance Knowledge Management Roadmap

  • Enterprise Data Model
  • Operational Data Store
  • Enterprise Data Warehouse
  • Themed analytic data marts
  • Enterprise reporting portal
  • Metadata management
  • Data Stewardship

9. 10. 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

11. 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 rdparty 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

12. 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

13. Showcase Agenda

  • Background/Business Case
    • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
    • 20 minutes Latha Subramanian
  • Data Model AIIM
    • 20 minutes Duke Ganote
  • Information Management AIIM
    • 20 minutes Dan Daly
  • Q& A Duke/Sandy/Latha/Dan
    • 20 minutes

14. Enterprise Data Warehouse

  • Create an implementation roadmap
    • Content scope January 1998 thru present
    • All products loaded over 5 years
  • Implement value after each iteration
    • Loss Cost, Retention, Loss Triangles
  • Establish Data Stewardship - 2004

15. Enterprise Data Warehouse The data warehouse will support: LossCost Analysis Retention Analysis modernLINK Reporting Profitability Analysis Data Warehouse Underwriting Analysis Product Pricing Analysis Financial Analysis 16. Data Warehouse Value MH Loss Cost SBLoss Cost MC Loss Cost Retention UVRC Pricing / GLM LossTriangles modernLINK MH PIF mLINK vs. Legacy Retro Studies Mapping Renewal Reporting FIDMSB CAT Analysis CancellationReporting Address Data AgencyProfile Analysis ClaimsLiability PartnerExperience Reporting 17. Data Warehouse Statistics 1997 policies used to seed warehouse:~700,000 Total policies Jan 1998 thru Jun 2007Total 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 18. Data Warehouse Benefits

  • Single version of the truth
  • Data integrated at the lowest level
  • High-end hardware platform
  • Codes translated to English terms
  • Resolve source system problems
  • Data quality review and correction
  • Integration of external information

19. Data Mart Themes

  • modernLINK quote
  • Exposure
  • Retention
  • Experience
  • Loss Cost
  • Claims
  • Underwriting

20. Technology Enablers.

  • 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

21. Showcase Agenda

  • Background/Business Case
    • 20 minutes Sandy Wagner
  • Data Warehouse AIIM
    • 20 minutes Latha Subramanian
  • Data Model AIIM
    • 20 minutes Duke Ganote
  • Information Management AIIM
    • 20 minutes Dan Daly
  • Q& A Duke/Sandy/Latha/Dan
    • 20 minutes

22. Data Model

  • 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

23. Enterprise Data Model Quotes/Policies Claims CoveragesAccidents/Violations Homes/Vehicles UW rules Makes/Models Geography Address Insureds Operators Lienholders Claimants Things Places People 24. 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 A