COPE Update The Claims JourneySupporting 2014 Strategy

Brian Jarvis, VP, Claims TransformationAlexis Doran, Director, Claims Transformation

October 18, 2010

Today’s Agenda • Review ground rules for series• Review today’s objectives • Strategy 2014 and the customer experience• Case for change• Claims portfolio – shaping our future vision• Ensuring success• Questions

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Ground Rules• Forum is not part of the collective bargaining or s.

54 process – it informs context for forthcoming negotiations

• We ask that you exercise patience as we share our plans

• Not able to answer questions such as potential site closures or employee impacts, because we do not yet know

• We will follow up on appropriate questions that cannot be answered

• We are committed to sharing information with the Union as soon as decisions are made

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Today’s Meeting Objectives

In today’s session we will cover the following:

Share how we’re learning from our customers and employees, including best practices, and how we’ll continue to gather and use these insights on our journey to 2014Enhance your understanding of the long term plan for the Claims portfolio within our Transformation Program, and some of the projects currently underway to deliver a better customer and employee experience

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2014 Strategy

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Customer Targets for 2014

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2014 Goals TargetCurrent

4/10 7/10

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Improve Customer Perception

Improve Customer Experience

How will we get there?

Our approach to building the customer experience:

1. Understanding our customers – which aspects of our service customers like /don’t like, and what needs & wants they have that currently aren’t being met

2. Enabling our employees and business to deliver – based on customer insights, enabling our employees and business to consistently deliver what customers expect

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•Continuously measure Customer Experience to track progress

•Customer Experience priorities with greatest impact on BBQ score

Understanding customers’ attitudes and perceptions of ICBC

• Understand “moment of truth” pain points

What is stopping us today?• Our processes and policies do not support

our employees• Employees don’t have the right tools and

information• Current systems are not designed around

the customer interaction• Current systems require repetitive entry of

data making it difficult for our employees to deliver the ideal customer experience

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How will we get there?

We need to provide our employees with:

•Better, single-source information that helps them be more efficient•Streamlined processes that enable them to deliver an excellent customer experience•Systems that allow employees to spend time on what matters to the customer•Better training for employees to help them meet the needs of customers

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First Steps1. Defining Current Claims Processes

– Involved 180 Subject Matter Experts (SMEs) from across the Claims division to understand how things really work in different parts of Claims

– Validated results with Claims employees

2. Industry Best Practices– Researched & evaluated industry-leading practices– Extracted lessons learned from other organizations

3. Customer Focus Groups – To understand our customers’ expectations and

what they value in their Claims experience

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1. Defining Current Claims Processes

– SME team reviewed more than 3,000 issues & opportunities identified

– Identified ways to simplify and improve processes, including specific technology needs/capabilities, i.e. business requirements

– Validated by external advisor with experience in Claims transformations

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2. Industry Best Practices

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Pre-paid Debit Cards

Direct Repair

End-to-End Self Serve

Direct Deposit of Funds

Self Serve Claim Status

Multi-Channel Reporting Options

Industry Leaders

Electronic Document Management

Expense Reimbursement

75% In House Estimating

No Published Service Commitments

In Person Claim Centre Appointments

Paper Cheques

Adjuster Assistance Required For Claim Status

Call Centre Reporting

ICBC

Microfiche

Money-back Service Satisfaction Guarantee

3. Customer Focus Groups

“They need to treat you with respect. Treat you like a human being.”

“Why can’t I look up information on your web site that tells me exactly what I can expect from you

when I have an accident.”

”For simple claims, why can’t we report

online?”

“I want a human response. It felt like the person was filling out a

questionnaire. There was no emotion, no empathy.”

“You should have all expenses paid. You

shouldn't have to pay out-of-pocket”

“I want no assumption of guilt. You always feel like you have to defend

yourself.”

Trust Me

Trust Me

Meet my

Needs

Meet my

Needs

TransparencyTransparency

Provide me “Hassle Free” Service

Provide me “Hassle Free” Service

Respect Me

Respect Me

Empathize with Me

Empathize with Me

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Our Case for Change

Customer•Customers expect more•Not seen as delivering

“hassle-free” service•Current processes are

not customer-oriented•Competitors challenging

us on price & service•We need to increase

BBQ Score – 5/10 unacceptable!

•Need to focus on the overall Customer Experience

Customer•Customers expect more•Not seen as delivering

“hassle-free” service•Current processes are

not customer-oriented•Competitors challenging

us on price & service•We need to increase

BBQ Score – 5/10 unacceptable!

•Need to focus on the overall Customer Experience

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Our Case for Change

Customer•Customers expect more•Not seen as delivering

“hassle-free” service•Current processes are

not customer-oriented•Competitors challenging

us on price & service•We need to increase

BBQ Score – 5/10 unacceptable!

•Need to focus on the overall Customer Experience

Customer•Customers expect more•Not seen as delivering

“hassle-free” service•Current processes are

not customer-oriented•Competitors challenging

us on price & service•We need to increase

BBQ Score – 5/10 unacceptable!

•Need to focus on the overall Customer Experience

Employee•Low employee

engagement•Poor work tools – e.g.

outdated & inefficient technology & processes

•Improve change management practices

•Limited career path & prof. development opportunities

•Projected retirements expected to create skills shortages

Employee•Low employee

engagement•Poor work tools – e.g.

outdated & inefficient technology & processes

•Improve change management practices

•Limited career path & prof. development opportunities

•Projected retirements expected to create skills shortages

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Our Case for Change

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Our Vision for the Future Customer Experience• Deliver our claims services in a way that’s easy, flexible

and transparent for customers and partners:

– Enhance customer choice in service delivery options

– Enable self-serve capabilities for customers and preferred partners

– Commit to a Claims service promise

– Improve existing partner relationships & expand to new relationships to provide seamless service delivery

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Our Vision for the Future

Employee Experience• Improve our employees’ experience, while enhancing their

ability to serve customers:– Modern, efficient work tools, including an integrated,

paperless Claims Management System– Streamlined and simplified business processes– Remove repetitive work to give employees more time to

provide quality service to the customer – Skill-based assignment of work– A single source of information– Development and training programs, enhanced career

opportunities

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Our Vision for the Future

Financial Stability• Control loss/expense costs and maintain financial strength:

– Electronic files and streamlined business processes will reduce inefficiencies and costs

– Modern systems with predictive analytics and access to “good” data enable more effective decision making

– Improved ability to meet customer needs reduces potential litigation costs

– Partnership agreements to help realize efficiencies and cost-saving opportunities

What This Means …Today

• 98% of customers come in one way to report claims – via phone

• 90% of customer calls today are for routine inquiries - deductible waived? Claim status? Car towed?

• Same claims-handling process for all customers

• Files primarily assigned by geography

• 75% in-house estimating

• Paper-based file means we have to work file in location of customer

• Files regularly transferred for different reasons

• Inflexible training opportunities

In the Future

• Customers have greater opportunity to report online

• Employees & customers save time! They use self-service & check status of their claim online

• Customer options: commercial vs. personal; faster process for “low-risk” claims

• Files assigned by matching risk/complexity of file to skills of employees

• Expand Express Repair & increase estimator reviews/audits

• Electronic Paperless file means anyone, at any location can help customer or assist employee with file resolution

• Employee can stay as single point of contact for customer even if they change locations

• Flexible training and development opportunities and options

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Claims PortfolioWhat is it?A set of Claims projects and initiatives under the

Transformation Program umbrella to:

• Help our employees consistently deliver an exceptional claims experience to our customers (People)

• Improve ICBC’s claims handling (Process)• Replace our aging business systems (Technology)

Key Elements:• Creating a more “hassle-free” customer experience • Removing complex & inconsistent policies and processes• Streamlining and simplifying inefficient business processes• Providing a fully integrated Claims Management System

Anticipated Timeline: Now to 2014

Realizing Our Vision: Foundational Work in 2010

1.SystemSelect & introduce an integrated Claims Management System Solution (CMSS) adopting ICBC’s Technology Alignment Strategy

2.People & Processes Develop an enhanced claims business which will support achieving ICBC’s 2014 vision

3.Data Management Identify & recommend processes and systems that allow for the handling, capture and storage of paper and other electronic or digital media

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• End goal: – Deliver an end-to-end integrated claims management

solution and processes to improve the customer and employee experience

• Currently:– Selected a lead vendor

– Contract negotiations– “Fit Gap”

• Q3 2012 implementation begins

1. Shaping our future: The System

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EOI

Implementation Planning

System Transition Strategy

Execute

2010 2011

Q3/ Q4Jan Mar Jun OctJul Aug SepJuly Sept Dec

Q1 / Q2 Q3 / Q4 Q1 / Q2

Nov Dec

2012Q3/ Q4

Jan Mar Jun JulyJan Mar JunJuly Sept Dec

Q1 / Q2

Sept Dec

System Procurement –Project Deliverables & Expected Timeline

Go Live

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• Segmentation of claims based on risk

• Skill based claim assignment

• Workload balancing

• Real time claim handling to maximize once and done

• Involved all areas of the company – not just claims - to ensure an holistic approach

2. Shaping our future:People & Process

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Document Content Management• Inventory of critical claims requirements to

enable the electronic file• Corporate interest in our data/information• Conversion strategy

3. Shaping our future: Data Management

Ensuring our Success• Significant change for any company - we want to get

it right! • Claims is moving in concert with other areas, so that

we are moving together towards strategy 2014• Established TP Governance• Strong project management to help the business

follow sound change management principles• Working with risk advisor that takes a 3rd-party

perspective• Hired a business advisor with lots of experience and

industry knowledge in transformational change• Hiring a Systems Integrator to help us with

implementation of multiple systems

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What’s Next

We’ll provide more information once decisions have been made.

Revisit Today’s Meeting Objectives

In today’s session we covered the following:

Share how we’re learning from our customers and employees, including best practices, and how we’ll continue to gather and use these insights on our journey to 2014Enhance your understanding of the long term plan for the Claims portfolio within our Transformation Program, and some of the projects currently underway to deliver a better customer and employee experience

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Questions?