case study: bringing operational efficiency and business intelligence … · 2019-05-31 ·...
TRANSCRIPT
Case Study: Bringing Operational Efficiency and Business Intelligence to Insurance
Presented by Ike Kavas, Founder & CEO at Ephesoft and Eric Howse, Enterprise Sales Director at Zia Consulting
The Data Challenge80-90% OF DATA IS UNSTRUCTURED, AND THEREFORE IT CAN’T
BE EASILY ACCESSED, SEARCHED OR USED.
• IDC reports that data is growing at a 10X rate per year and by 2025, the global datasphere will have 163 ZB of data worldwide (IDC Directions 2019)
• Companies spent $5.8B on data entry keyer jobs in the US and $134B spent on all types of data entry & information processing jobs (US Bureau of Labor Statistics report, 2017)
Tech Trends & Market InfluencesDeloitte Report: 2019 Insurance Outlook
A possible 2020 recession could damper insurer growth (you’ll need to do more with less = automation)
Cloud: 7 out of 10 insurers are using some form of cloud technology in their business today
• Cost-savings, speed, flexibility and scalability
• CIOs are under pressure to deliver digital capabilities faster
• Carriers have an opportunity to be part of an ecosystem of tech partners to gain a competitive edge by drawing timely insights from data in a cost-effective manner.
The Story of Digital Transformation• Paper and data growth challenges
• Typical insurance triggers: lots of documents and manual data entry processes
• Use cases across insurance organizations:
– Claims and supporting documents, mailroom, billing, invoicing, HR files, records, archives, customer onboarding
About Protective Insurance• Founded in 1930 and based in Carmel, Indiana
• Serves as the publicly-traded holding company for several property-casualty insurance subsidiaries including Protective Insurance Company, Sagamore Insurance and Protective Specialty Insurance Company Specializes in providing insurance for the transportation industry
• Licensed in all 50 states, the District of Columbia, Puerto Rico and all Canadian provinces to provide comprehensive insurance programs to trucking fleets, motorcoach operations and limousine services
• Products are backed by a dedicated Loss Prevention & Safety Services Team, experienced claims management and superior customer service
• FY2018 Revenues were $483M
The Problems
• Needed a technology refresh
– 6 silos for each application in policy, claims and admin
• 10 million claims need to be converted into usable and accessible data
• Mailroom was a bottleneck of information
Previous Mail Process
Mail delivered to mailroom
Mail sorted Mail delivered to departments
Mail sorted bydepartments
Printed Printed copy used Digital copy stored in database
Printed copy scanned back into database
Process previously took 12-24 business hours
Automation v1.0: Mistakes
• Limited scope of project: IT focused initiative
• Picked the wrong vendor: end result was a 90% custom project, not the 10% custom that they were hoping for
• Low adoption of solution
• CIO was fired
Automation 2.0: Migrating 10M Documents
• Current/old process took 3 seconds for 1 page
– At this rate, it would take 180M seconds or 50,000 hours or 5.7 years
• Actual time took 7 days:
– New process: 3 seconds for 99 pages
• Technology used:
Ephesoft + Alfresco + Snowbound + OPEX
• Servers: 12 cores
Mailroom Modernization
Mail delivered to mailroom
Mail sorted Mail scanned Saved into Alfresco
Delivered to desktop
Process now takes 15 minutes
Results
10 million documents in 7 days;~1.43 million documents per day= Fast, efficient processing
From 2 days to process mail to 15 minutes;99% process improvement
How it Happened
Eliminated manual review of every document
Replaced “print to rescan” with email capture
Intelligent routing to the
correct adjustor
Expedited exception
handling when claim number
is missing
Capture Process
Protective Insurance Results
Rescue project
using Alfresco +
Ephesoft
Migrated
10 million
documents
in seven days
Reduced mailroom
processing time
from
two days to 15
minutes
Phased
migration of
claims library to
Alfresco
Consolidated
numerous
systems
into one
Strong user
adoption by
enabling them to
work in a
native
environment
Delivery of
electronic
documents rather
than millions of
pieces of paper
Learning from the Mistakes• Poised the project as a business initiative
• Picked the right vendor:
– completed a health check, business process assessment, phased implementation and rollout
• High adoption of solution: involved multiple teams, including executives, which resulted in high involvement
• Be open to change: “Change is a way of life”
• Lesson learned: processing and addressing claims faster saved Protective money
• Going paperless with a front-end data capture process to reduce the 300,000 printed materials generated each week
• Centralizing all content
• Implementing a records management solution
• Expand solution to other departments
Upcoming Initiatives
Questions? Thank you!Visit Ephesoft and Zia Consulting at Booth #700
ephesoft.com ziaconsulting.com