Extending Core Systems for CAT Management Session 271
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 Eugene Lee VP, Data and Analytics Armchair philosopher Focus on analytics
Legacy systems lock in legacy strategy. They must be replaced.
Core System Transformation: Just the First Step Results in superior decisions, processes and customer experiences
Transformation Within and About Decisions (reporting & analytics) Expert evaluation Complex underwriting Large losses Litigation strategy Employee mentorship Best practice evaluation Interaction tasks Underwriting judgment Decision audit Liability judgment Issue resolution Channel performance management Negotiation Processes (core systems) Procedural compliance Basic processing tasks Enforcement of process steps File documentation Assignment Data entry / clerical file work Answering queries Standard correspondence
CAT Management Requires many Decisions CSR Line Manager Executive CEO & Board 1. Is this loss covered by the policy? 2. Should this claim be fast tracked? 3. Should I flag this claim as potentially fraudulent? 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. 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. 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? Core system user Current view Tactical Type of data Type of decision Not a core system user Historical, trending Strategic
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)
About Me Cathy Babiec Director, Claims Data Reporting & Analytics 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
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 Vendor Data External Data Predictive Analytics ClaimCenter EDW Enterprise Analytics Guidewire Live
About Me 17 years IT experience; 5 in P&C Joined PURE in 2010; initial focus on Claims IT function Joshua Bland VP, IT Program Management Currently leads the IT Business Partners and the Quality Assurance groups at PURE
PURE Insurance Background High Net Worth Specialist US Personal Lines Writing since 2007 40%+ Growth YoY
Pre-Catastrophe Management Loss avoidance: Proactive engagement with policyholders ( members ) PURE Situation Room PURE Member Advocates Guidewire Live
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
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
Pre-CAT Preparation
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
CAT Response
Poll In your business, which of the following areas would most benefit from better data and analytics? Underwriting Claims Fraud Identification Operational Efficiency Other
Beyond CAT Management
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