Experience and Best Practices – Keys To Software Implementability

Implementing software into a complex insurance carrier environment can be risky and fraught with impediments that increase cost and timelines. Return On Intelligence, having managed software implementations on a global basis, asked ourselves the question:  Are there any experiences or best practices that if employed can lower the risk of software implementation to ensure a rapid and cost effective implementation?

What we learned after looking at a wide sample of implementations suggests that a foundation for implementation success consists of experience in three categories:

  1. Insurance Knowledge. Broad and deep;
  2. Understanding the data. To be processed and its relationship to the business;
  3. Technical acumen.  Not just with the software product alone, but the conversion and interfaces required.

In addition to these three categories, we found that focusing on a number of best practices increases the chances of a successful core systems implementation project:

  1. Organizational Readiness. Assessing the readiness levels of all participating parties as they relate to planning and timeframes, as well as the required participation of the recipient department or departments;
  2. Governance. Managing overall governance of the software implementation and adherence to agreed priorities;
  3. Accelerators. The proper choice and use of any “implementation accelerators” such as data conversion or testing tools.

Our conclusion is that when undertaking a core systems transformation, the focus on experience and best practices should be required considerations, and may in fact contribute to avoiding protracted and costly software implementations that endanger the progress of the carrier’s strategy at the least, and its profitability at the most.

Jim Janavich

 

 

Tweet about this on TwitterShare on LinkedInShare on Google+Share on TumblrEmail this to someone

Telematics Data – Changing The Insurance Underwriting and Actuarial Environment

Telematics and specifically the usage based data it generates, significantly improves the ability to rate and price automobile insurance, by adding a deeper level of granularity to the data commonly used today.

Companies in the forefront of using telematics data, are beginning to understand the value of its many indicators as they relate to policyholder driving behavior, and how that behavior positive or negative, directly affects overall policy administration cost.

This advantage though, also comes with a possible disadvantage – higher volumes of data being added to already burdened processing resources. A single vehicle generates approximately 2.6 MB of data per week.  If 50,000 auto policies are on the books, accumulating that data for a year results in 6.8 TB per year.

Pay How You Drive Data

Given that the use of telematics data from automobiles is on the rise in insurance companies, to be followed by telematics data generated from wireless sensors in personal and commercial use; a solution for processing huge volumes of data quickly is indicated.

Most likely that solution is SAP/HANA based, processes the data and analytics together in main-memory, provides underwriters and actuaries a technological advantage to their business – real-time rating and pricing, a solution that doesn’t exist with traditional methods.

Jim Janavich

Tweet about this on TwitterShare on LinkedInShare on Google+Share on TumblrEmail this to someone