IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Policy Administration & Business Intelligence Initiatives: ‘A Match Made in Heaven’Session Number Goes Here in 24pt Arial

Agenda

Sompo Overview

Sompo Policy Administration Project – Part I

• Objectives

• Delivery Plan & Approach

• Successes & Challenges

Sompo Business Intelligence– Part II

• Why a holistic approach

• Improving Business Decisions with Analytics

• Delivering on Information Demand

• BI Architecture & Tools

• Case Study: Information Management

Policy Administration Project

Prep Work

Process

• Evaluate existing assets

• Policy Administration

• Claims Administration

• Billing Administration

• Reinsurance Administration

• Data Warehouse

• Business Intelligence

• Back Office Administration (e.g. STAT reporting, GL etc.)

Program Work

Outcome

• Step 1: Detailed Requirements Assessment to lock in Scope,

Schedule and Financials of project

• Step 2: Phased approach that fit within capabilities of the organization

• Supplement current policy administration system

• Implement a new claims management system

• Replace legacy AS/400 with new system of record

• Implement a new reinsurance and billing administration system

• Supplement current BI capabilities with enhanced data capabilities

Policy

Decisions

Phase 1

WINS

CAPS

Freedom

General Ledger

SJASIX

Pass 2 Existing PD Lines

WINS Policy

Entry

WINS Billing

Reinsurance

WINS Claim

Entry

Existing Lines

Reports

Vision

Manual Billing

This is not a feed

CLRS

(Loss Account

Groups)

Policy

Tracking

Claims

Tracking

RLA

Reports

COP, OM, UM,

HPR, AAIS IM Pass 2

Claims

DecisionsPoliciesClaims

RSG

(Broadspire /

Crawford)

WCPOLS

Umbrella

Personal

Umbrella

Personal

Home

Personal

Auto

Global

Product

HPR

AAIS COPOcean

Marine

Excess

Property

Boiler

Mono Line

Excess

WC

Mass Auto

CAR

Manual Lines

Deductible Recovery

Estimated

Recoveries

DBSYSTEM

AS400/Access

A/RPrint

Agency

Statements

Print Ocean

Marine P&L

Check

Printing

(Claims)

Broadspire

Takeover

Claims

Broadspire

Detailed

Policy

Broadspire

Basic Policy

ISO

UNITSTAT1099'sISODMV ISO

Mass

Auto

CAR

Kentucky

Worker's

Comp

CA CSS

Submission

Stars -

YKK

Stars -

INX

ISO Claim

Search

ISO

WCPOLS

ISO

WCTRP

(NY)

AuSum

(Premium

Audit)

Tokyo

Data

Nissan

Loss File

Policy

Tracking

Retiring End State Insurity End State ClientLEGEND: Retired 3rd Party FeedReporting Agency /

Regulatory

IEV Claims

Policies

Policy ACTDTE

Claim ACTDTE

Phase I

Phased Approach

Phase – WINS used for Reins/Billing/DR/DR Estimates

Policy

Decisions

IEV

CAPS

1099'sISO

UNITSTAT

Freedom

General LedgerSIX

Policy ACORD XML

Vision

Manual BillingCLRS

(Loss Account

Groups)

Policy

Tracking

Claims

Tracking

RSG

(Broadspire/

Crawford)

ISODMV ISOMass Auto

CAR

Kentucky

Worker's

Comp

CA CSS

Submission

Stars -

YKKStars - INX

ISO Claim

Search

ISO

WCPOLS

ISO

WCTRP

(NY)

AuSum

(Premium

Audit)

Tokyo

Data

Nissan

Loss File

RLA

Reports

Print Agency

Statements

Print Ocean

Marine P&L

Check Printing

(Claims)

Claims

DecisionsPolicies

Claims

w DR Recoveries

New Check

Print Solution

TBD

TBD

Boiler

Mono Line

WCPOLS

Broadspire

Takeover

Claims

Broadspire

Detailed

Policy

Broadspire

Basic Policy

A/R

Earned Premium

Calculations

End State Insurity End State ClientLEGEND: Retired 3rd Party FeedReporting Agency /

Regulatory

Umbrella

Personal

Umbrella

Personal

Home

Personal

Auto

Global

Product

HPR

AAIS COPOcean

Marine

Excess

Property

Excess

WC

Manual Lines

Mass Auto

CAR

WINS

Existing PD Lines

WINS Policy Entry

WINS Billing

Reinsurance

WINS Claim

Entry

Reports

Deductible

RecoveryEstimated

Recoveries

DBSYSTEM

WINS / MS Access

Boiler

Mono Line

Ded Recoveries

Billing Information

Reinsurance Information

DR Estimates

Reporting

Decisions

WINS Report

Rewrite

Reins / Billing / DR / DR

Estimates

Remaining in WINS

Phased Approach

Phase – WINS used for Reins/Billing/DR/DR Estimates

Policy

Decisions

IEV

CAPS

1099'sISO

UNITSTAT

Freedom

General LedgerSIX

Policy ACORD XML

Vision

Manual BillingCLRS

(Loss Account

Groups)

Policy

Tracking

Claims

Tracking

RSG

(Broadspire/

Crawford)

ISODMV ISOMass Auto

CAR

Kentucky

Worker's

Comp

CA CSS

Submission

Stars -

YKKStars - INX

ISO Claim

Search

ISO

WCPOLS

ISO

WCTRP

(NY)

AuSum

(Premium

Audit)

Tokyo

Data

Nissan

Loss File

RLA

Reports

Print Agency

Statements

Print Ocean

Marine P&LCheck Printing

(Claims)

Claims

DecisionsPolicies

Claims

w DR Recoveries

New Check

Print Solution

TBD

TBD

Boiler

Mono Line

WCPOLS

Broadspire

Takeover

Claims

Broadspire

Detailed

Policy

Broadspire

Basic Policy

A/R

Earned Premium

Calculations

End State Insurity End State ClientLEGEND: Retired 3rd Party FeedReporting Agency /

Regulatory

Umbrella

Personal

Umbrella

Personal

Home

Personal

Auto

Global

Product

HPR

AAIS COPOcean

Marine

Excess

Property

Excess

WC

Manual Lines

Mass Auto

CAR

WINS

Existing PD Lines

WINS Policy Entry

WINS Billing

Reinsurance

WINS Claim

Entry

Reports

Deductible

RecoveryEstimated

Recoveries

DBSYSTEM

WINS / MS Access

Boiler

Mono Line

Ded Recoveries

Billing Information

Reinsurance Information

DR Estimates

Reporting

Decisions

WINS Report

Rewrite

Reins / Billing / DR / DR

Estimates

Remaining in WINS

End State

Policy

Decisions

End State

IEV

CAPS

1099'sISO

UNITSTAT

Freedom

General Ledger

(SJA)

SIX

Policy ACORD XML

CLRS

(Loss Account

Groups)

Policy

Tracking

Billing & Deductible

Recovery (TBD)

& DR Estimates

Billing

RSG

(Broadspire /

Crawford)

ISODMV ISOMass Auto

CAR

Kentucky

Worker's

Comp

CA CSS

Submission

Stars -

YKKStars - INX

ISO Claim

Search

ISO

WCPOLS

ISO

WCTRP

(NY)

AuSum

(Premium

Audit)

Tokyo

Data

Nissan

Loss File

Claims

RLA

Reports

Claims

DecisionsPolicies

Claims

WINS Report

Rewrite

New Check

Print Solution

TBD

New

Reinsurance

Solution (TBD)

Direct Premium & Losses

Ceded Premium & Losses

Data Element

Expansion

Personal

Umbrella

Personal

Home

Personal

Auto

Global

Product

Boiler

Mono Line

Excess

WC

Manual Lines

Mass Auto

CAR

Claims Financial

Transactional Activity

WCPOLS

Broadspire

Takeover

Claims

Broadspire

Detailed

Policy

Broadspire

Basic Policy Earned Premium

Calculations

Policy

Tracking

End State Insurity End State ClientLEGEND: 3rd Party FeedReporting Agency /

Regulatory

What has worked well

Structured approach

• Accountability

• Direct Lines

• Organizational challenges

Dedicated resources

• People have day jobs

Use SME’s when necessary, but partner with dedicated

resources

What has been challenging

Business objectives change over a long period of time

Resources change over a long period of time

What’s left

Data warehouse and back office capabilities go live in

October 2014

• Allows us to supplement BI capabilities with enhanced data

• Enhanced loss reporting

• Increased decision making capabilities

• Utilize current assets

Business Intelligence

Why look at this holistically?

For many P&C insurers, the goal has been to create more

competitive, flexible and scalable operational systems.

While the bottom-line benefits from these improvements are

being realized, the benefits have often been limited by a

siloed approach; that is, too many insurers don’t fully

integrate processes or data flows for optimal process

efficiency and effectiveness.

Why look at this holistically? Cont.

Ability to leverage an integrated technology stack and avoid

being compartmentalized. Understanding where to place

big bets and where not to, will make a huge difference in

business outcomes. Further, the integration of PAS/BI

projects as part of broad-based transformation, “turbo-

charge” the business case: the returns on investments for

both rise dramatically.

More empowered ‘customers’ are also a force for a holistic

transformation. Accustomed to using sophisticated banking

and retail websites and transacting via smartphones,

today’s stakeholder now expects similarly streamlined

processes, integrated data streams and personalized

information

Val

ue

Difficulty2013 - Gartner

Diagnostic

Analytics

Predictive

Analytics

Prescriptive

Analytics

Descriptive

Analytics

What happened?

Why did it happen?

What will happen?

How can we

make it happen?

Business Analytics Progression

Improving Business Decisions with Analytics

Financial Information Operational Insights Integrated Information

/ Actionable Intelligence

Diagnostic

Analytics

Predictive

Analytics

Descriptive

Analytics

Hindsight Insight Foresight

Information Optimization

Prescriptive

Analytics

EPM Tools

Basic Business Intelligence Tools

Advanced Visual Analysis

Advanced Business Intelligence

How To Get Started: Analytics Maturity Model & Architecture Framework

Progressing on the Analytics Maturity curve is not just

about tools and technology

Leveraging available technology effectively requires a

comprehensive framework

Strategy & Culture

Skills & Techniques

Process & Tools

Data Sources & Quality

Delivering on Information Demand

Determining which tools and technologies are most appropriate to address an

organization’s information needs is equally as important as understanding the

information itself.

Information

Demand

Business

Intelligence

Tools

Value

Reporting needs

Regulatory Requirements

Analytics

Dashboards

Interactive

Reporting

We recommend leveraging a more robust architecture to meet end user requirements

Data Sources

Data Warehouse

Analytic

Models

Pre

senta

tion

Anal

yti

cD

ata

Inte

gra

tio

nS

ourc

e

Sompo currently has elements of the standard architecture

Presentation layer enables distributed web based

input and reporting and analysis capabilities from

high quality production reports to ad hoc analysis

Analytical layer provides advanced modeling

capabilities, business rule standardization,

consolidation and aggregation of data.

Data mart layer centralizes the data, hierarchies, and

business transformations. Common business

definitions and data elements established.

Source layer contains systems and applications which

are structured to support high-volume transactional

processing.

Executive Summary

$0

$200

$400

$600

$800

$1,000

$1,200

Thousands

Funded Proposals

Total Solicitor Goals

% to Goal: 57%

FY2010 - Year-To-Date Funded Proposals

Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask

Data as of: May 31 2010

Funded

Proposals

Proposal

ProjectionsVisits Entry DaysSummary

Portfolio

Activity

Proposal Projection Dollars

16 15 16

0

5

10

15

20

25

FY10-Mar FY10-Apr FY10-May

Visits

Goal

0

50

100

150

200

250w/o Open or Active Proposals

With Open Proposals

With Active Asks

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Thousa

nds

No Ask Made as Projected

Open Proposals

Active Asks

Received Amount

% Portfolio with

Active Asks: 14%

DATA

INSIGHT

KNOWLEDGE

ADVANTAGE

Data Warehouse / Integration Layer: Consolidate data into one Data Warehouse with improved data quality processes while structuring to support cubes

Data Sources

Data Warehouse

Analytic

Models

Pre

sen

tati

on

Anal

yti

cD

ata

Inte

gra

tio

nS

ourc

e

Executive Summary

$0

$200

$400

$600

$800

$1,000

$1,200

Thousands

Funded Proposals

Total Solicitor Goals

% to Goal: 57%

FY2010 - Year-To-Date Funded Proposals

Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask

Data as of: May 31 2010

Funded

Proposals

Proposal

ProjectionsVisits Entry DaysSummary

Portfolio

Activity

Proposal Projection Dollars

16 15 16

0

5

10

15

20

25

FY10-Mar FY10-Apr FY10-May

Visits

Goal

0

50

100

150

200

250w/o Open or Active Proposals

With Open Proposals

With Active Asks

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Thousa

nds

No Ask Made as Projected

Open Proposals

Active Asks

Received Amount

% Portfolio with

Active Asks: 14%

Information Management ArchitectureData structured to support:

Operational / Transactional Reporting

End-User Query

Analytic cubes

Data is extracted from a data source (typically a business

application), transformed using a series of transformation

routines and then loaded into the data warehouse once

data is in the target format desired

Analytic Layer: Establish relationships in data while maintain flexibility in reporting

Data Sources

Data Warehouse

Analytic

Models

Pre

senta

tion

An

alyti

cD

ata

Inte

gra

tio

nS

ourc

e

Executive Summary

$0

$200

$400

$600

$800

$1,000

$1,200

Thousands

Funded Proposals

Total Solicitor Goals

% to Goal: 57%

FY2010 - Year-To-Date Funded Proposals

Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask

Data as of: May 31 2010

Funded

Proposals

Proposal

ProjectionsVisits Entry DaysSummary

Portfolio

Activity

Proposal Projection Dollars

16 15 16

0

5

10

15

20

25

FY10-Mar FY10-Apr FY10-May

Visits

Goal

0

50

100

150

200

250w/o Open or Active Proposals

With Open Proposals

With Active Asks

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Thousa

nds

No Ask Made as Projected

Open Proposals

Active Asks

Received Amount

% Portfolio with

Active Asks: 14%

Information Management Architecture

Cubes within the Analytic Layer will provide a unified view to users.

“Need to aggregate & establish

relationships in the data” Common Business View of

the Data (UDM)

Self Service Model with

pre-aggregated data

Dimensions & Hierarchies

to support analysis

Consistently defined

metrics & KPIs

Guaranteed Correct

Results

Improved Database

Performance through

proactive cache

Presentation Layer: Components used to expose data to end-users

Data Sources

Data Warehouse

Analytic

Models

Pre

senta

tion

An

alyti

cD

ata

Inte

gra

tio

nS

ourc

e

Executive Summary

$0

$200

$400

$600

$800

$1,000

$1,200

Thousands

Funded Proposals

Total Solicitor Goals

% to Goal: 57%

FY2010 - Year-To-Date Funded Proposals

Average Visits Per Prospect ManagerPortfolio Size and % Prospects with Active Ask

Data as of: May 31 2010

Funded

Proposals

Proposal

ProjectionsVisits Entry DaysSummary

Portfolio

Activity

Proposal Projection Dollars

16 15 16

0

5

10

15

20

25

FY10-Mar FY10-Apr FY10-May

Visits

Goal

0

50

100

150

200

250w/o Open or Active Proposals

With Open Proposals

With Active Asks

$0

$20,000

$40,000

$60,000

$80,000

$100,000

$120,000

$140,000

$160,000

$180,000

Thousa

nds

No Ask Made as Projected

Open Proposals

Active Asks

Received Amount

% Portfolio with

Active Asks: 14%

Information Management Architecture

Multiple possibilities for consumption of information.

Customization for

data analysis and

consumption

Quickly and easily

navigate

information you

need

Drill in place for

further analysis

Modify calculations

Interact with results

Share Data

Reporting & Dashboarding

Rich, Enterprise Reporting Platform (static and

interactive)

Multiple data sources with multiple delivery

options

Scalable, manageable and embeddable Web

Services architecture

Advanced Authoring Tools

End-user, Ad Hoc Reporting

Reporting &

Dashboard

Tools

• Microsoft SSRS

• Hyperion Financial Reports

• Hyperion Web Analysis

• Oracle BI Dashboards &

Publisher

• Cognos Report Studio

• Business Objects Xcelsius

• Business Objects Crystal

Reports

Case Study – Aligning Analytic Strategy to Support PAS transformation

Business Challenge

• Business Leaders needed to identify and prioritize

information demand and BI requirements to support

demand creation and demand fulfillment on a global scale

• IT required a defined architecture and resource model to

support global use of Business Intelligence infrastructures

to support the proposed business objectives

• “Clients’ craved dashboards and metrics to confidently

review and measure the health of the business from

anywhere

Case Study – Aligning Analytic Strategy to Support PAS transformation

Solution

• Baseline current state information needs, existing data sources, and future plans / strategy to

implement an enterprise information architecture

• Assess the capabilities and readiness of the organization

• Conduct high-level gap analysis between current and future states to identify improvement

• Mobilize key stakeholders with a prioritized roadmap providing a phased plan with key milestones,

deliverables, resources, and costs to execute and deliver key information with analytics tools

Projected Impact

• Align organization with clear understanding of program benefits prior to investing in software or

implementation costs

• Well-defined foundational systems and technology to support and scale the information and application

architecture

• Standardize information delivery, transforming data assets into corporate information to make critical

business decisions

• Phased deployment roadmap for Reporting & Analytics, dashboards and metrics

Next Steps To Get Started on Your Initiative

All the necessary tools are available to you today – you need to take the next step:

Determine what end of the spectrum you are on today & where you need to be

• Descriptive Analytics

• Diagnostic Analytics

• Predictive Analytics

• Prescriptive Analytics

Assess your current state

• Strategy & Culture

• Skills & Techniques

• Processes & Tools

• Data Sources & Quality

Establish a roadmap to fill in the gaps and take your Analytics Maturity to the next level

Conclusion

Due to the critical role of PAS & BI in insurance, any effort to

transform the organization will require considerable

investment, commitment and discipline. But the business case

for transformation is real, as evidenced by the significant

investments being made by the P&C industry and by the

results being realized—especially those that embrace

advanced BI and analytics capabilities as part of their

transformation initiatives.

Whether an organization is at the beginning of a transformation

process or in the midst of a multi-year program, one thing is

clear: those companies taking a holistic view are not fully

leveraging their investments and risk being left behind by their

competitors in the marketplace

Thank you