Leveraging Core Systems for Actionable Insights in Policy Claims

Our latest installment of the AAIS Webinar Series featuring AAIS Partner, OneShield, covered how carriers can effectively leverage and transform core system data into actionable insights to strengthen business decisions and policy claims management. Speakers explored the valuable data types within core systems such as policy, claims, and customer interactions, techniques for extracting and processing this data, and real-world examples demonstrating the impact of these insights. They also discussed the shift from static reports to dynamic data visualization and offered tips for identifying key insights critical for various stakeholders, including underwriters and claims managers. John Kadous, Vice President of Products at AAIS, and John Dunn, Vice President of Sales at OneShield led the discussion with Travis Mayfield, Reporting Product Manager at OneShield.

Introduction to Actionable Insights

Mayfield defined actionable insights as "curated data that allows the end user to make informed decisions and ask thoughtful questions." He identified three key components of actionable insights:

• Business Focused: A collaboration between business units and IT is required to transform data from two-dimensional to three-dimensional.
• Clear Requirement Gathering Framework: A standardized approach helps streamline the process from request to report generation.
• Data Storage and Visualization Solution: Effective reporting solutions need strategies for easy data retrieval, transformation, and visualization.

Examples of Actionable Insights

Mayfield shared practical examples of actionable insights, illustrating how data can be used to make informed decisions. For instance, a claims team leader might ask, "How does average days to close impact my cost per claim?" This question aims to identify factors that can be controlled to improve cost efficiency. Another example involves examining the performance of underwriters by asking, "What's the closure ratio of my top-performing underwriters, and which brokers are they working best with?" To pull out actionable insights, Mayfield explained, "You want to really look at submission data and get an idea of which underwriters are performing amazingly with certain agents, which may need some help, which agencies are providing equality results…things like that."

Helping Carriers Make Informed Decisions with Data

To help carriers generate actionable insights, Mayfield emphasized the need to focus on the business problem and not the current limitations. "It's about what the business wants," he stated. Mayfield explained that actionable insights are rooted in addressing specific business questions and challenges. For instance, an underwriter might be concerned with increasing policy premiums, while a claims manager might focus on forecasting staffing needs based on task completion times.

Mayfield also highlighted the importance of frameworks and methodologies in generating actionable insights. One such framework that OneShield utilizes is the "BADIR" framework from the book Behind Every Good Decision. This framework helps bridge the gap between business questions and meaningful reports. It emphasizes the importance of understanding the goals of analysis and considering regional differences when generating reports.

Solutions to Evolve Reporting

Mayfield addressed the limitations of traditional reporting tools like Excel, highlighting the need for more advanced solutions. He recommended tools like Power BI and Azure Data Factory, which enable dynamic, interactive reporting and allow users to generate actionable insights efficiently.

Utilizing Core Systems for Actionable Insights

According to Mayfield, actionable insights require a core system capable of providing two-dimensional data that meets initial business needs from day one. Rather than focusing on regulatory requirements, he believes the emphasis should be on essential data needed to manage a business effectively. This includes policy details, earned premium, written premium, renewal rates, accounts receivable, and claims information such as average days to close and average cost to close. Mayfield advised this data to be available in various formats-by region, in real-time, monthly, or quarterly. "There's a lot of different ways to view this data, and once you get there, you might want to mix and match the different elements to manage your business," he said. But before advancing to three-dimensional reporting that provides tailored actionable insights, companies need a reliable core system for detailed data.

Leveraging Actionable Insights for Dynamic Analysis and Proof of Concept

When developing actionable insights, Mayfield believes it is crucial to understand that end users may not always know exactly what they need but will recognize valuable information when presented with it. For example, a claims manager might be uncertain about how to improve claim processing efficiency but will benefit from a flexible report that allows them to explore various data perspectives. In a given scenario, the manager might want to investigate how closing claims more quickly affects the overall cost of those claims. Mayfield explained that the report should provide detailed insights, such as identifying high-performing individuals like an adjuster who significantly reduces the average cost to close claims. Additionally, the manager might hypothesize that closing more claims within 90 days will reduce average costs. Mayfield added that the purpose of such reports is to allow users to verify their hypotheses through concrete data. "We're no longer speculating about what the results are," he confirmed. "We can now make informed decisions and go forward knowing that we're building something that's valuable, making decisions that we can back by data, and see results in areas that matter the most."

To view the full webinar, click on the video above.

Questions? Please reach out to any of the featured speakers through the contact information below.

John Kadous

Vice President of Products - AAIS

[email protected]

John Dunn

Vice President of Sales, Americas - OneShield

[email protected]

Travis Mayfield

Reporting Product Manager - OneShield

[email protected]

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