Workflow of the Future – Journey to Excellence

1. Workflow of the Future – Journey to Excellence Presented by: Irene Juthnas, MetLife Pam Kreager, Long Term Care Group, Inc. Kelli Martin, Genworth Financial Facilitated by : Amy Chambers, Genworth Financial

2. PANELISTS • Irene Juthnas, Director of Underwriting, Met Life • Pam Kreager, Underwriting Director, Long Term Care Group, Inc. • Kelli Martin, Client Account Manager – Career Channel, Genworth Financial

3. MetLife Underwriting Model • Underwrite Group and Individual LTC • Agent calls • Appeals • Audit Underwriting Quality • Quality Management System • Risk Management • Compliance

4. MetLife Individual Model • Imaging • Underwriting Team • Case Management • Vendor Relations • Underwriting Call Team • Resource Call Team • Policy Print

5. MetLife Group Model • Imaging • New Business Processing • Underwriting Team • Vendor Relations • Customer Service

6. LTCG Underwriting Model • Multiple supervisors • Regular underwriters for multiple clients • Agent calls • Contract underwriters • Quality assurance auditor • Early claims review • Reconsideration and appeals • Administrative assistants

7. LTCG Functional Teams • Mailroom and imaging • Application control • Risk management information • Tele application • Call center • Underwriting • Policy issue • Financial and policy owner services • Claims and care management

8. MetLife - Impact of Technology • Imaging – complete file • Remote Work • Access to information • No lost documents • Administrative System • Auto Underwriting • Auto assignment • Auto Requirements ordering • Electronic Data exchange • Access to Comprehensive UW information

9. MetLife Impact of Technology • IP phone/Virtual Fax/ Instant Messaging • Web meetings/training/ Conference calls • Improved Cycle Time • Improved Customer Service • Improved Reports

10. LTCG Technology • Imaging system • Entire file • Incoming and outbound letters • Administration system • Real time information • To do lists • Letter templates • Modules by functional area • Auditable • Phone system upgrade

11. LTCG Impact of Technology on Processes • Work from remote locations • Set up a call center type call routing • No lost or misfiled information • Routing of the files • Data retrieval by information source • Review status

12. What has your experience been with changes in technology?

13. What other technology have you tried and what has been the result?

14. MetLife Wing to Wing Process • Application Receipt to Policy Print/Decision Correspondence • UW Cycle Time – Assigned to UW to UW Decision • Measured Weekly and Cumulative • Monitor Summary Data and Detail Data

15. MetLife Measurement and Analysis “ If you cannot measure it, you cannot control it. If you cannot control it, you cannot manage it. If you cannot manage it, you cannot improve it.” H. James Harrington

16. MetLife Cycle Time Measurement Tool

17. MetLife Cycle Time Measurement Tool

18. MetLife Cycle Time Actions • Application Changes • Internal Process Improvement • Vendor Process Improvement • Establish / Enhance Time standards • React quickly to changes • Focused audits / Retraining • Reduction in cycle time

19. MetLife Production and Quality Program • Quality Management System Program • Dedicated Audit staff • Enhanced Productivity/Quality Tools • Communication of Productivity and Quality results • Productivity measured against goal and peer results

20. MetLife – Scorecards • Part of MetLife’s QMS program • Unit scorecard communication • Measures unit key objectives …goal vs actual • Ongoing communication of results

22. Quality Management

23. Quality Management is having measurements in place to keep the eye on the target for productivity and movement towards achievement of goals. What is Quality Management?

24. Important Steps for Developing a Strong Quality Management System 1. Document the Process2. Identify Internal Process Measurements3. Identify W2W Process Measurements4. Develop Quality Measurement Process5. Define Factors needed for Establishing Goals

25. Process Documentation • A tool to identify value add and non-value add steps • A method for measuring cycle time for each step • A way to provide consistency between processors

26. Types of Process Measurements • Cycle Time • Productivity • Accuracy • Pending Volume • Decline Rate • Decline Percentage by Age Group

27. Wing to Wing Process Steps to Measure • Image Time • Data Entry Time • Screening Time • Audit Time • Medical Requirement Time • Underwriting Time • Issue Time • Mail Time • Transport Time • Wait Time

28. How can you impact production at any step in the process from application receipt to the final underwriting decision?

29. Have any process changes positively or negatively impacted your productivity?

30. Quality Measurement Process • Strong Audit Process Must be in Place • Random sample mathematically determined • Audit conducted at each step • Repeatable audit

31. Factors used for Establishing Goals • Value Add Steps and Non-Value Add Steps in a Process • Timings taken from a random sample of processors at different performance levels • Experience of employees • Pending Queue Volume / Workable Volume

32. Examples of Productivity Tools

33. Dashboards / Scorecards • Snapshot tools for monitoring and measuring progress • Different levels • High level Productivity • Departmental Productivity • Individual productivity • Must be updated regularly • Must have drill downs

34. Dashboards / Scorecards • Why Use Them? • Keep an eye on the target • A way to understand how well you are doing • Identify gaps and opportunities • What to Measure • Every part of the process that impacts the end result that you are trying to achieve. Y = f(x1, x2, x3,…..)

35. Sample Dashboard: Daily Cockpit

36. Sample Underwriting Tool

37. Sample Underwriting Tool

38. Additional Sample Productivity Tools • Individual Processor Dashboards • Total Issued and Premium • Total Declined, Incomplete or Withdrawn and Lost Premium • Overall Cycle Time • Audit Results • Vendor Dashboards • Cycle Time

39. How have dashboards / scorecards helped in your management of the wing to wing underwriting process?

40. Process Improvements

41. Process Improvements All processes have room for improvement! Quote: “Champions are Never Satisfied.”

42. Driving Forces for Process Improvements • Voice of the Customer • Increase in Cycle Time • Decrease in Accuracy • Production Goals • Employee Needs – “Ease of Processing” • Request from “Higher Up”

43. Process Improvement Techniques

44. Work OutTM Session • Eliminate unnecessary work • Identify quick hits • Empower employees • Identify new-way ideas • On-the-spot decisions

45. Six Sigma A 5-step process that provides an understanding of how good a process is, how good it can be and why there is a gap in performance.

46. Five Step Quality Process • Define: Define the Problem • Measure: Determine how bad the problem is • Analyze: Determine what is causing the problem • Improve: Develop a “fix” for the problem • Control: Make sure the “fix” stays

47. Recipe for Success • Having a clear understanding of the driving factors • Being able to take raw data, analyze it and identify opportunities • Know what to measure • Mean • Median • Variation • Eliminate outliers to reduce variation • Understand complete process • Making the customer happy!

48. Questions?