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Case Study – Replacing our Claims Applications Jerry Dalla Corte Vice President, Head Office Operations March 27, 2008. Introduction – Who are we?. 2007 - $1 Billion (approx.) GWP Write all major lines including Automobile, Personal Property, Commercial P & C, and Surety
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Case Study – Replacing our Claims Applications Jerry Dalla CorteVice President, Head Office Operations March 27, 2008
Introduction – Who are we? • 2007 - $1 Billion (approx.) GWP • Write all major lines including Automobile, Personal Property, Commercial P & C, and Surety • Offices in 10 major cities • Multiple legacy systems and support apps • Trust Matters / Do the Right thing
Brief history • Claims to be a Core Competency • Restructuring - Standard Procedures and Service Metrics • Re engineering – Customer Service
System Limitations • Productivity challenges (limited efficiency gains) • Limited opportunities for new gains • Multiple sign-ons – 3 to 4 applications • Very ‘codey’ system • Information challenges Applications were still not enablers
Claims IS Strategy - 2004 • Launched a Claims IS Strategy project • Started with an assessment of where we were and what we needed
Claims IS Strategy • We considered the following options: • Extend our existing system • Develop new claims system • Buy and implement an application
System Limitations • Multiple sign-ons – 3 to 4 applications • Very ‘codey’ system • Information challenges • Productivity challenges (limited efficiency gains) • Limited opportunities for new gains • Lack of business rules and work mgmt
Existing System – Information Services • 3 main systems\applications assessed: • Legacy system – aging technology, cost of maintenance, ease of change • Notes – reliable, but technology problem and scalability issues • Web – proprietary technology, difficult to change • Technically our systems were partially adequate to adequate • Data quality & document storage were problems
Extend Existing Application • Would require extensive rewrite of front-ends with no increase in functionality • Other applications needed to be developed • Not sufficient to meet information and business needs of the next decade
Develop New Claims Application • Too Costly
Implement Commercial Product • Focus on 2 questions • Is there something we can buy to meet our needs? • Can we implement it? • Developed a list of key attributes and business requirements • Assessed a number of products on the market • Short listed vendors who met our attributes, requirements, and we felt we could work with
Selection Process • Assessment based on RFI, scenario configuration, ‘hands on’ sessions, and on site visits • Based on scoring performance, not ranking vendors • Claims completed ‘scores’ based on function; IS ‘scores’ based on technical design and ability to implement • Jointly considered miscellaneous requirements
Decision • Selected Guidewire because: • Met functional needs • Architecture: Java consistent with our technical architecture and is consistent with SOA • Proven implementation track record • Way of doing things
Project - Phase 1 • Immediate success was important • Project was divided into 4 phases • Started Oct 2005, UAT Oct 2006 • Pilot Jan 2007 • Training completed in 3 days • Well received by adjusters
Project Team • Team consisted of approx 25 people • Broken into 3 Groups: Configuration, Integration, and Project Management • Configuration – Screen design, business rules • Integration – Mainframe, Java, BA’s, Technical • Had traditional teams for testing and training
How we worked (Methodology) • Agile for Configuration • Integration, Waterfall, but parts of Agile • Agile drove schedule
Benefits • No real quantitative measures for ROI • Process Improvements – reduced handoffs, e.g. payments • Activities\Work Mgmt\Abeyance system • Reduced keying, easier to read information
Objectives for future • Service – initially as is, but expect future increases, particularly for those very satisfied • Cost management - look for ways to improve cost • Performance to standard operating procedures being revised. Anticipate a higher pass benchmark.
Lessons Learned • People work to the standards they are measured to! • Communication • Surprises happen – plan for them
Conclusion • Change is reality • Technology does not mean change • Change does not need technology, but technology can enable more change