Extending Core Systems for CAT - IASA 2015/Sessions...Extending Core Systems for CAT Management Session 271 IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW Poll Which of the

IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

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

• Armchair philosopher

• Focus on analytics

Eugene Lee VP, Data and 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

• Data entry / clerical file work • Answering queries • Standard correspondence

• Complex underwriting • Large losses • Litigation strategy • Employee mentorship

• Underwriting judgment • Decision audit • Liability judgment

• Issue resolution • Channel performance management • Negotiation

• Enforcement of process steps • File documentation • Assignment

Basic processing tasks

Procedural compliance

Interaction tasks

Best practice evaluation

Expert evaluation

Decisions (reporting & analytics)

Processes (core systems)

CAT Management Requires many Decisions

Line Manager CEO & Board Executive

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?

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. 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. Is this loss covered by

the policy?

2. Should this claim be

fast tracked?

3. Should I flag this claim

as potentially

fraudulent?

CSR

Core system user Not a core system user

Current view Historical, trending Type of data

Type of decision Tactical 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

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

Cathy Babiec Director, Claims Data Reporting & Analytics


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

ClaimCenter

Guidewire

Live

EDW

Predictive

Analytics

Enterprise

Analytics

Vendor Data

External Data


About Me

17 years IT experience; 5 in

P&C

Joined PURE in 2010; initial

focus on Claims IT function

Currently leads the IT Business

Partners and the Quality

Assurance groups at PURE

Joshua Bland VP, IT Program Management


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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Extending Core Systems for CAT - IASA 2015/Sessions...Extending Core Systems for CAT Management Session 271 IASA 87TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW Poll Which of the

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