IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Session #571 – Core Transformation: Implementation

Karen Furtado – Strategy Meets Action, Partner

Karen has been a partner at Strategy

Meets Action since 2008. SMA is a leading

independent advisory firm providing

business and technology insights,

research, and actionable advice to the

insurance industry.

She assists insurers in their modernization

journey through her exceptional knowledge

of how to most effectively use technology

for policy administration, rating, product

configuration, billing and claims.

Karen has held various leadership

positions in the insurance industry over the

past several years.

Derek Oke – Sr. Information Technology Architect – Travelers Canada

Derek Oke, Sr. Information Technology Architect – Travelers Canada

Derek has been with Travelers Canada since 2004. In his current role, he

provides architecture oversight for a multi-year core system replacement

project. This project will replace all legacy applications from user entry

applications to back end reporting.

Prior to Travelers Canada, Derek worked with multiple technology

providers in implementing Policy, Claims and Billing systems for insurers

in the U.S. and Canada. Derek has played many roles including lead

architect and project manager.

Derek has a joint degree in Computer Science and Business

Administration from the University of Waterloo and Wilfrid Laurier

University.

Travelers Canada is the strategic Canadian operation of The Travelers

Companies, Inc., a leading multinational property and casualty insurance

company with approximately 30,000 employees. Travelers Canada

provides personal insurance, business insurance and surety solutions to

customers from coast to coast.

Scott Hunt – President, Project Innovation

Group & General Manager, PAS Transformation,

CSAA Insurance Group

Scott is the General Manager of PAS Software Development &

Implementation for CSAA Insurance Group. Scott has been part of

CSAA Insurance Group’s PAS transformation initiative since March

2009

Scott is also the President and chief consultant for Project

Innovation Group, a boutique management consultancy based in

San Francisco. He has provided project management expertise on

large scale transformation initiatives for such clients as Charles

Schwab, Levi Strauss & Co., Wells Fargo, Barclays Global

Investors, and AAA NCNU

Scott was formerly a VP at Digital Insight (bought by Intuit),

founding SVP at Wells Fargo Funds Distributor, and part of the

senior leadership team that took E*TRADE Securities public

CSAA Insurance Group is celebrating its 100th year in the insurance

business. It ranks 16th for personal lines in the country, and serves

16.6 million AAA members through partner clubs in 23 states and

Washington, D.C.

CSAA Insurance Group has an "A+" (Superior) financial rating from

A.M. Best

scottahunt@projectinnovationgroup.com

CSAA Insurance Groupa AAA Insurer

Tim Steele – OneShield, Sr. Vice President, Product Management

Responsible for the strategic direction

of OneShield's product offerings.

Previously led projects for a software

consulting organization and helped

create an internet insurance

marketplace.

Over 10 years of experience managing

surety and specialty insurance

business units for several major

carriers.

tsteele@oneshield.com

Fazi Zand – SVP, Products, Exigen Insurance Solutions

Fazi joined Exigen in 2000 is one of the early formulators of

Exigen's insurance solutions and is responsible for product

strategy and development.

With over 25 years in IT management, marketing, strategy,

architecture, project and product management, Fazi draws on

experience on all aspects of the information technology value

chain.

Exigen Insurance Solutions® is a global provider of core

systems for insurers. Customers deploy Exigen’s multi-line

platform of pre-configured products for personal, commercial

and group benefits lines to achieve rapid and scalable solution

implementations.

Exigen provides the Exigen Suite™ pre-integrated and cloud-

ready solutions - PolicyCore™, BillingCore™, ClaimCore™

and CustomerCore™ - for policy administration, billing, claims

and customer management.

Exigen Insurance Solutions employs 600 people worldwide

and is headquartered in San Francisco.

IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Current State of Core

System

Implementations

Core Transformation Power

Core Transformation involves:

1. Modern applications

2. Operations best practices

3. Roadmap for the future

4. Integrate with Next-Gen

technologies

Source: Strategy Meets Action 2013

Average Replacement Timeframe is 2.9 years

Source: SMA Research 2013, Policy Administration, n=121

Extended Timeframes for Implementation

Implementation Success and Failure

Where are the challenges?

Source: SMA Research 2013, Policy Administration, n=121

Source: Strategy Meets Action 2014

Transformation Opportunity

IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Polling Questions

Polling Question #1

Have you ever implemented a new core system?

• 1 – YES

• 2 - NO

Polling Question #1

Are you currently implementing a new core

system?

• 1 – YES

• 2 - NO

Polling Question #3

Will you be undertaking a core system data

conversion project in the next 12 months?

• 1 – YES

• 2 - NO

IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

Panelist Q&A

Implementation - Planning

Did you use an Agile or Waterfall approach? Did you

develop an enterprise blueprint before you started?

How did you organize your team?

What program level resources did you assign?

How did you decide your implementation methodology?

Words Of Wisdom

Determine how to staff - is it just another project or should

you hire up so you can dedicate staff across IS and the

business units?

Finding the right people to make up the team is the biggest

key to success in an implementation.

Implementation – Execution

How did you determine what should be planned for initial

releases?

How did you maintain focus and control scope?

Did you have a change management program in place?

Implementation – Execution

Did you leverage automation and testing tools? (could be

on-going too)

What did you perceive as the major risks for your

effort? What did you do to mitigate these risks?

How did your business do in supporting such a long running

effort?

Words Of Wisdom

Identify what success will look like and how it will be

measured early in the planning. Things like time to market

for product and pricing changes, improved service

standards, headcount changes, new markets, etc. They

should then be validated in a post-implementation review.

Assure strong business sponsorship. Maintain ownership

of the Program and Architecture. Assure program is

integrated within a long term technology roadmap.

Words Of Wisdom

Newer systems still have risk and challenges like legacy

systems, but often different ones and be sure they’re

understood and planned for.

Do demos often

Make sure the users are involved early and frequently in

the project. Allocate resource time out of operational

departments so customer service does not suffer.

Implementation – On-Going

How did you plan for post-production?

What are the challenges in supporting your new environment?

Did you have metrics that compare your actual results with

your original business case?

Did you have any metrics around TCO?

Final Words Of Wisdom

Be sure as you invest in new technology, your organization

keeps pace – people, processes, tools – necessary to

support long term.

People make successful implementations. Technology and

tools assist them.

There are always challenges along the way, plan for them

and don't get discouraged when they arise, use them as

opportunities to strengthen your determination and move

forward with your plans.

IASA 86TH ANNUAL EDUCATIONAL CONFERENCE & BUSINESS SHOW

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