ICTI Conference Brijuni 1820 October 2007
Technology Innovation as a Competitive Weapon for Claims Management
Growth is not enough - GBMM - 011106 - JT 9am
Agenda
New frontiers in claims technology
Working Draft - Last Modified 23/10/2007 9.51.13
Divide and conquer
1 1
Growth is not enough - GBMM - 011106 - JT 9am
The sources of claims innovation
Trends
Fresh ideas (yet to become enablers)
Convergence of
TLC, internet, TV
Wireless claims applications Accident reconstruction technology
Increasing data
flows and directory searches
Litigation management environment
Working Draft - Last Modified 23/10/2007 9.51.13
Advanced disease management Community
management tools
Remote assessments Voice biometric technologies Predictive modeling
Increasing
computing power
2 2
Growth is not enough - GBMM - 011106 - JT 9am
Wireless applications: enhance information gathering and interaction with customers
Wireless devices can support realtime claims submittal, assessment, negotiation, and payment
Opportunity for adjusters and customers
Impact
Higher customer
satisfaction and involvement
Working Draft - Last Modified 23/10/2007 9.51.13
Faster claims
handling process
Higher productivity
of assessors and adjustors
3 3
Growth is not enough - GBMM - 011106 - JT 9am
Accident reconstruction technology: improve claims dynamics understanding
Easy to install clear box chip installed on the car able to track and send to a central unit how many km are driven, when, where and how fast Claims business opportunity
Impact
400.000 new
customers in 12 months in Italy
Working Draft - Last Modified 23/10/2007 9.51.13
Average cost of
claims 5%
Frequency -15% Attract with proper discount good
customer segments with lower claims frequency Accident reconstruction algorithms Black box available for litigation management
4 4
Growth is not enough - GBMM - 011106 - JT 9am
Claims animation solutions: improve understanding of complex claims and backup technical decisions
Recreate car crash effects, providing visual re-tracing of impact points, and identify / confirm possible injuries resulting from different types of crashes
Claims business opportunity
Impact
Demystify crash
data, soft tissue damages and resulting claim expenses
Working Draft - Last Modified 23/10/2007 9.51.13
Support litigation Accuracy of
reserves
5 5
Growth is not enough - GBMM - 011106 - JT 9am
Advanced disease management: improves customer well being and reduces case cost
Remote intensive care unit helps identify chronic conditions early and refer patients to comprehensive programs to improve their health and well being Claims business opportunity Impact after one year
Cardiopulmonary
arrests < 50%
Mortality of patient
admitted to program < 16%
Working Draft - Last Modified 23/10/2007 9.51.13
Patient discharged
by hospitals > 22%
~ 20 lives saved Data search engines and predictive
modeling Web community for - 24/7 monitoring - Counseling on demand - Education Alert on-site staff Exchange data with hospitals Drug story tracking
6 6
Growth is not enough - GBMM - 011106 - JT 9am
Litigation management solutions: improve workflow of arbitrations and legal activities
An electronic workspace supporting interaction and communication of claims handlers, assessors and lawyers Claims business opportunity Impact
Reduction in cost of
interaction
Improved workflow
of legal activities
Improved customer
service
Working Draft - Last Modified 23/10/2007 9.51.13
Real-time collaboration Analysis of legal process and
impact of decision options Skill-based routing for trial assignment Decision support tool Automated invoicing and reporting
7 7
Growth is not enough - GBMM - 011106 - JT 9am
Tele-claims technologies: enabling on-line remote assessments
Claims business opportunity Remote on-line assessment of car damages made by a technical call center using video cameras in preferred body shops Can provide distinctive service to clients (spend and quality) and reduce intermediation during assessment phase
Impact
Most motor claims
settled in <23 working days
Working Draft - Last Modified 23/10/2007 9.51.13
Minimise extra
payout
High share of
customers delighted by outstanding level of service
8 8
Growth is not enough - GBMM - 011106 - JT 9am
Voice biometric technology: supports advanced fraud detection
Claims business opportunity Analyze and measure physical and behavioral characteristics of individuals Rank claimant reliability based on Analysis of emotional state Analysis of narrative integrity Cognitive interviewing/double checks Impact
Pushes genuine
customers onto fast track Reduces throughput time and claims handling costs Lower leakage risk Improved service
Working Draft - Last Modified 23/10/2007 9.51.13
Triggers investigation of
high risk calls Better leakage control Better focus of investigators and assessors
9 9
Growth is not enough - GBMM - 011106 - JT 9am
Agenda
New frontiers in claims technology
Working Draft - Last Modified 23/10/2007 9.51.13
Divide and conquer
10 10
Growth is not enough - GBMM - 011106 - JT 9am
The typical IT project portfolio has too little focus on innovation
IT investment budget (capex), percent Innovation projects 100 4
Working Draft - Last Modified 23/10/2007 9.51.13
Regulatory compliance, infrastructure improvement, legacy maintenance application evolution
96
IT will tend to focus too much on costs and business continuity
2005
11 11
Growth is not enough - GBMM - 011106 - JT 9am
It is imperative to understand how IT adds value
Get pole position Win the race Change the rules
IT as a commodity
IT as business enabler
IT as innovation tool
Working Draft - Last Modified 23/10/2007 9.51.13
Necessary to do
business
Necessary to beat
competition by improving product, services, and performance
Turning IT into a
competitive weapon, innovating markets and services or changing the value chain
Value Low cost, protect revenues, limit operational failure or regulatory liabilities
Business performance
improvement
New market positioning One step ahead of
competitors
12 12
Growth is not enough - GBMM - 011106 - JT 9am
The three-part approach is very applicable in claims
Get pole position Win the race Change the rules
IT as a commodity
IT as business enablers
IT as innovation tool
Infrastructure mgmt Core legacy platforms Accounting and backoffice activities Document and data management Application development technologies
Seamless channel
integration (e.g., first notification) On-line platform Integration with third parties eCFR and performance mgmt Sophisticated assessment tools Teleclaims
Data search engines Voice biometric Wireless claims Accident reconstruction Predictive analysis tools Virtual interactions and negotiations
Working Draft - Last Modified 23/10/2007 9.51.13
13 13
Growth is not enough - GBMM - 011106 - JT 9am
Push IT managers to adopt a three-part budget model and manage each part separately
Total budget Index
Infrastructure Applications business users
100
are satisfied about Mandatory initiatives
Applications business
60-70
Working Draft - Last Modified 23/10/2007 9.51.13
users are not satisfied New applications
Applications not
20-25 5-10 Total IT budget IT as a commodity IT as enabler IT as innovation tool
conceived by business users
14 14
Growth is not enough - GBMM - 011106 - JT 9am
Claims executives role varies across the three parts
Business leaders role IT as a commodity Smart buyer
KPI to be tracked
Goals Quality services at low cost
Cost drivers Technology complexity Platform flexibility
Working Draft - Last Modified 23/10/2007 9.51.13
IT as enabler
Managing partner
Organisational
performance Times Quality
Continuous performance improvement
IT as innovation tool
Talent scout
No. of ideas Brand recognition
Build competitive advantage
15 15
