1. Insurance
Insights
New Normal
May/June 2012
T h e Pat h B e y o n d B u s i n e s s & T e c h n o l o g y I n n o vat i o n
Innovation
Insurer Suite
Insurer Policy
Insurer Claims
Insurer Analytics
Innovation
Insurance
Services
Innovation
Property
Innovation
Auto
Innovation
FNOL
Future of
Insurance
Analysts &
Awards
2. Let’s talk about the future of insurance
Today’s “New Normal” demands a new
path and new solutions. Engage in a
dialog about the future of insurance
and start your journey in one of many
ways.
J Use the QR codes on this page for
more details on Innovation Group
solutions.
J Visit the Innovation Group website,
www.us-innovation-group.com, to
“walk-through” our interactive roadmap
and view information about our
solutions and customers.
J View the new video on “The Future of
Insurance,” featuring Gartner’s Kimberly
Harris-Ferrante and Innovation Group’s
Andy Roberts.
Scan and Explore
#futureofinsurance
Need a QR Code Reader?
Search for “QR Code Reader” in your app store or point your phone’s browser to getscanlife.com to download a free app.
3. Change. Big Change.
CON T EN T S
T
he insurance industry is poised for significant changes, likely more
transformational than we have seen since the 70’s when technology was the
driver, fueling automation, operational efficiencies and product innovation
through the technology revolution. Today, that revolution continues but is
now driven by customers, changing the industry and market landscape and the use of
technology in other industries where it is integral to daily life.
Changes in the world economy and dramatic shifts in consumer demographics are
creating a seismic shift in the insurance industry. Insurers must respond to new regulations,
distribution channel preferences morphing to match customer behavior and demands, a
shortage of qualified, skilled workers fueled by a perception of the industry as old and stodgy,
and a failing technology infrastructure neglected during decades of underwriting losses that
were hidden by soaring investment returns.
While the core of insurance remains the same, risk management and protection of
assets, the who, what, when, where and how are all changing … creating new drivers
shaping the future of the industry. These drivers shape five key areas of change within the
industry including:
Business Revolution: An industry lacking an underwriting profit for 25 years,
with an accumulated deficit of nearly half a trillion and increasing catastrophic claims is
unsustainable in the foreseeable low interest environment requiring a focus on fundamentals
of underwriting profitability, pricing excellence and product innovation. New competitors
will challenge the industry and influence new business models.
Customer Revolution: The customer is in control, is surrounded by digital media,
technology and innovation based on experience in other industries, transforming the
industry. Self-organized customer groups will negotiate with insurers for the product
and price.
Data Revolution: Data analysis will transform data into relevant and actionable
information that rapidly provides business insights using dashboards to manage the
business operationally and strategically.
Product Revolution: Product development and pricing will be individualized, include
new services or features and evolve to customer’s defining their own product.
Distribution Revolution: Influenced by customer demands and expectations, we
will see distribution disruption and fusion of new integrated, multi-channel, social-group
interactions.
Technology Revolution: Technology and process innovation will continue at a face
pace and disrupt with new technologies like SOA, SaaS, Cloud, analytics and mobile
internet computing to plan their future.
Insurance companies today cannot afford to operate as they did ten, or even five, years
ago. A strategic roadmap is the real key to surviving and thriving in the “new normal” and
providing a path to the future. We are on the brink of a new era in insurance industry.
An era of new business models as companies take advantage of new technologies, delivery
options and markets to reinvent themselves and create new levels of competition.
Those with a vision, roadmap and partner will have an edge to the competition and
a clear course to a profitable future. How will you prepare for the future? Where are you
starting from? What potential paths will you select?
Insurers’ visions of the future must include more fluid, agile organizations with robust
core software, analytics and BPO solutions, that quickly and effectively respond to change
and embrace new opportunities to empower innovation and success. We are on the brink
of a new era in the P&C insurance industry. An era of new business models as companies
take advantage of new technologies, delivery options and markets to reinvent themselves,
create new levels of competition and “build for change.”
Innovation Group has the knowledge, experience and solutions to help you create
your path of growth, innovation and real competitive advantage. We invite you to begin
your journey with Innovation Group and travel down a new path to a future of growth,
profitability, innovation and success!
www.us.innovation-group.com Insurance Insights
3
Welcome to Insurance Insights!
May/June 2012
J Change. Big Change. p.3
J A New Normal…A New Future p.4
J est-of-Breed Suite – A New Path to
B
Success p.6
J nsurer Policy – A New Path to
I
Success p.7
J nnovation Roadmap – A Pathway to
I
the Future p.8
J Claims Revolution p.10
A
J D ata Mastery: Insurer Analytics
Empowers Insurers p.11
J nnovation Insurance Services Helps
I
You Prepare for Change p.12
J T he Future of Insurance…Start Your
Journey with Innovation Group! p.15
Success Stories
J merican Modern Insurance Group
A
(AMIG) p.7
J astings Mutual Insurance Company
H
(Hastings Mutual) p.13
Contact Innovation Group Today!
#futureofinsurance
Join the “Future of Insurance”
LinkedIn Group to learn what the
insurance industry is saying.
4. A New Normal…A New Future
T
he recent financial crisis caused a seismic shift which has
profoundly impacted the PC insurance industry. Low
investment yields, exposure of long-term underwriting
losses, increased competitive pressures, limited growth,
and regulatory uncertainty are just a few of the deep, long-term
implications insurers are beginning to understand. The result is a
new normal for the insurance industry.
Combined ratios are still lingering at higher than needed
levels, and the industry is currently facing record capacity with
decreased exposures. Underwriting profits are nonexistent, and
claims payouts continue to accelerate. Market demographics have
shifted significantly, driving change in consumer behavior and
distribution channel preferences.
Further, the industry is facing a serious shortage of skilled
workers, which means business process outsourcing (BPO) is more
warranted and needed now more than ever before. This shift to a new
normal requires business strategy and business model transformation
to create a new, agile foundation that adapts to change, enables
continuous innovation and provides a platform for a new future.
A New Business Model
A convergence of long-term trends played out over decades
is fundamentally re-shaping the business landscape. Declining
return on assets (ROA) suggests the current way of doing business
is broken. Fortunately, the new normal is delivering a new
operational model which combines modern technology solutions,
BPO services, and alternative delivery platforms, allowing insurers
to focus on value-added core competencies.
This new model tightly integrates highly-configurable,
componentized SOA solutions which leverage business process
management (BPM), integrated analytics and flexible delivery
options on-premise, hosted, BPO, SaaS and Cloud, and integrate
effortlessly with expert, specialized BPO services for insurance.
Plus, it offers a new, strategic platform for market agility and
growth while lowering total cost of ownership (TCO).
By enabling breakthrough innovation and business
transformation in this new way of doing business, insurers can
combine emerging demands, operational efficiencies and dynamic
insights around business processes to maximize profitability,
market share and competitive differentiation.
A New Business Solution
One of the key features of the new normal’s business model is a new
breed of business solution. That said, it is important for insurers to
look beyond modern SOA, Java-based solutions that only just outperform legacy systems, to solutions with truly modern business
capabilities and delivery options.
The best solutions are designed to rapidly adapt to cyclical
business changes, build and deliver innovative products, services
and real-time access, enable multi-distribution channels, provide
operational claims excellence, deliver customer and underwriting
performance insight, all while maintaining a low TCO and business
agility. Based on a business architecture model, Innovation Insurer
includes business experience, functionality and IP developed over
20 years, built from the ground up on a 100 percent Java, SOA
architecture. The new Innovation Insurer inherently utilizes
Today, it is imperative that
insurers have the ability to
adapt to change. According
to the Insurance Information
Institute:
J There were no underwriting
profits in a 25 year period,
1979 – 2003, and these losses
are not sustainable.
J Combined ratios must be
lower in today’s depressed
investment environment to
generate appropriate ROEs.
4
Insurance Insights
#futureofinsurance
5. Innovation Group’s extensive
BPO operational experience
providing a functionally-rich,
modern UI with a robust data model and
extensive configurability to meet business-specific
requirements.
Further, Innovation Insurer provides customer relationship
management (CRM), real-time access, out-of-the-box portals for
agents, customers and partners, mobility enablement, rapid product
configuration and market delivery, rules, product templates and
integration, extensive FNOL capabilities, integrated supply chain
management, integrated business analytics, billing and financials,
and reinsurance management. And, perhaps most importantly,
Innovation Insurer is backed by a forward-thinking roadmap that
anticipates future business changes. It is a scalable, proven, business
solution with multiple delivery models, which makes Innovation
Insurer a robust, innovative alternative to traditional systems. It is
built and priced for all insurance companies, big and small alike.
A New Business Partner
Innovation Group’s strategic direction and vision
for the PC insurance industry capitalizes on
capabilities of the company’s core software and
BPO services. Today, Innovation Group is
delivering this new solution and business model
to drive more value to insurers, and provide the
agility to change with shifting market conditions
through best practices, and a platform for
continuous innovation and transformation.
Leveraging extensive BPO experience gained
through support for over 800 policy and claims
insurer customers globally, Innovation Group
is a key part of insurer clients’ operations and
brand promise. Deep involvement in our customers’
businesses gives Innovation Group a unique
perspective on the innovation, energy and insight
required for competitive advantage. Today, PC
insurers can choose a partner that offers a bespoke
range of solutions to suit insurers’ needs from end-toend insurance and risk management..
A New Innovation Group
Innovation Group’s
enhanced Innovation
Insurer and new business
model combines
the capabilities of
the company’s core
software and BPO
services. Companies that
successfully deliver such
broad solution sets drive
more value to insurers,
offer greater flexibility,
and agility to change
with shifting market
conditions through best
practices, a consortium
of new ideas, market
trends and capabilities,
and a platform for
continuous innovation
and transformation.
Many describe Innovation Group as “different” and
pushing change. While some vendors continued
down the path of delivering traditional, yet separate,
software solutions or BPO services, Innovation
Group is delivering on a strategy that offers a new
solution portfolio and a new business model for our
customers and the industry.
“The Road Not Taken” by Robert Frost states,
“Two roads diverged in a wood, and I— I took the
one less traveled by, and that has made all the
difference.” Without question,
change will continue at a rapid
Find out
what the experts are saying
pace, offering different paths
about the
and making it a very promising
Future of INSURANCE
time to be “different.” While
- Craig Weber, CEO of
in a new video featuring
others continued down the
Celent’s insurance practice
Gartner’s Kimberly Harrissame path, Innovation Group
Ferrante and
took the one less traveled and
Innovation Group’s Andy Roberts.
applied new ideas and energy
Now available on
to a traditional business
the Innovation Group
seeing big changes and plenty of competition,
website at
creating a new path for a successful future, one
www.us.innovation-group.com.
that will make all the difference.
www.us.innovation-group.com Insurance Insights
5
6. Best-of-Breed Suite –
A New Path to Success
T
raditionally
risk-averse,
the
insurance industry has long
struggled with staying up-to-date
in terms of technology, even when
it comes to replacement of mission-critical
systems that run core insurance processes.
However, in light of the demands imposed by
the new normal, core system modernization
is no longer optional, it is mandatory for
PC insurers.
A Sea Change
A literal sea change must take place in
order to mitigate the risk associated with
a project as large in scope and importance
as business transformation
Innovation Insurer —
and core administration
Provides Insurance Success
modernization
project.
and Exceptional Results.
Insurers today must turn
J ontributed to 50%
C
to technology vendors
organic growth
who can provide more
J Up to 40% productivity
than a single component
increase
or module. A modular,
J mproved customer
I
best-of-breed “suite” offers
retention and satisfaction
insurers the best and easiest
path to seamless integration,
J aunch new brand,
L
delivery of a tangible ROI
market segment and
direct channel
with a lower total cost of
ownership (TCO), and a
J mproved business
I
platform for growth and
intelligence and
real competitive advantage.
dashboard reporting
The New Path
Best-of-breed suites represent a big step
forward on a new path for insurers. By
providing the flexibility and choice to
implement functionally-rich, stand-alone
components, or a full suite, such solutions
enable insurers to effectively manage the
risk of core system replacement and provide
a platform for future IT investment. Today,
most solutions can be easily configured
to meet each insurer’s specific business
requirements without changing source
code, but differing in the depth and
breadth of the business functionality from
underwriting, policy, billing and claims to
reinsurance.
What makes best-of-breed suites with
stand-alone components unique is that
6
Insurance Insights
#futureofinsurance
they have a common architecture
and UI, single data model, outof-the-box integration, common
rules and process engines and
a single configuration toolset.
The key words are common,
single, depth and breadth. When
selecting a best-of breed suite
solution, insurers must consider
these key words, because many
vendors do not meet these
criteria.
Meeting Insurer Needs
Innovation Group’s Innovation
Insurer is a modular best-ofbreed suite including components for
policy, claims and analytics. Innovation
Insurer is designed to meet the challenges
facing modern PC insurers by delivering
significant
business
transformation
capabilities, seamless integration, process
optimization, a tangible ROI with a lower
TCO, business agility, scalability, and a
platform for growth and real competitive
advantage.
Consider the functionality and
capabilities inherent to all Innovation
Insurer components, including Insurer
Policy, Insurer Claims and Insurer
Analytics.
DEPTH AND BREADTH OF BUSINESS
CAPABILITIES:
Innovation Insurer
supports the end-to-end insurance value
chain, including product management,
rating, underwriting, billing, channel
management, CRM, audit and financials,
claims, supply chain management and
reinsurance.
INSURANCE-SPECIFIC ANALYTICS:
Proactively manage your business with
pre-defined PC specific dashboards,
reports, measures and KPIs.
RULE OF ONE: One data model. One
rules engine. One process engine. One
configuration and administration toolset.
INDUSTRIAL STRENGTH
CONFIGURATION: Enable changes to
business rules, UI, workflow, products,
rates and adding functionality without
changing source code.
CUSTOMER-CENTRIC: Customer-centric
data model, CRM, analytics and portals.
DELIVERY OPTIONS: License, ASP, BPO,
SaaS, Cloud, or any combination at any
time.
LOWER TCO: No additional license,
maintenance or integration cost for CRM,
analytics, supply chain management,
rating, reinsurance, channel management
and billing.
ENTERPRISE DATA MANAGEMENT: A
single data model ensures single “view of
the truth,” data quality, consistency and
visibility.
COMPLIANCE AND RISK MANAGEMENT:
Full audit-ability across the system for
change and data, different brands or
companies to support compliance and
regulatory demands.
BUSINESS AGILITY: Respond quicker
to market changes, MA, distributions
options, new products, market growth
opportunities and customer demands.
STAFFING AND SKILLS OPTIMIZATION:
Ease of the pressure of the lack of
knowledgeable and skilled staff with the
UI design, language and help capabilities,
broadening the pool of potential
employees.
Innovation Insurer provides a path
for innovation and transformation, a
path to success. Begin your journey on a
new path with Innovation Insurer.
7. Insurer Policy
—
A New Path to Success
O
ne module in Innovation Group’s
award-winning best-of-breed suite,
Innovation Insurer, Insurer Policy
helps PC insurers meet the challenges
of a competitive global marketplace by delivering
significant business transformation capabilities,
business agility, scalability, underwriting excellence
and process optimization with a tangible ROI and a
lower total cost of ownership (TCO).
Insurer Policy is a platform for growth, innovation
and real competitive advantage that has been recognized
with four XCelent Awards for functionality, technology
and customer base by Celent, and as a component in
Celent’s Model Insurer Awards. Insurer Policy provides
insurance success and exceptional results at a price
that makes modern technology affordable for insurers
across all tiers and segments.
Underwriting Excellence:
Risk portfolio view of the customer and/or the
household. Data analysis of underwriting trends.
Open collaboration between underwriters and
distribution channels.
Customer-Centric:
Grow and enhance customer relationships. Respond to
customer demands and expectations with a 360 degree
view of the customer. Customer analytics and portals.
Channel Optimization:
Respond to market demands. Channel options and
portals. Channel optimization and harmonization.
Insurance-Specific Analytics:
Insurer Policy is a very technology
driven and functionally robust system
that has greatly benefited from
Innovation’s architectural approach of
BUSINESS AGILITY:
the rule of one: one data model, one
Product Innovation:
Respond quicker to market changes, MA,
rules engine, and one workflow, one
Develop new products, enter new states and expand distribution options, new products, market growth
configuration / administration tool set;
channels quickly with a dynamic, graphical product opportunities and customer demands with the robust,
the new UI and enhanced business
management toolset.
flexible configuration.
development administration (BDA)
capabilities that further
CELENT Breadth of Functionality 2011 Advanced Technology 2011 set it apart in
CELENT
CELENT Customer Base 2011 Functionality
flexibility.
Breadth of
Advanced Technology
Customer Base 2011
Proactively manage your business with pre-defined
PC specific dashboards, reports, measures and
KPIs.
2011
2011
- Ben Moreland, Senior Analyst, Celent
American Modern Insurance Group
(AMIG) Success Story
R
ecognized as one of Ward’s Top 50
PC Insurance Companies in the U.S.,
American Modern Insurance Group (AMIG)
implemented Innovation Group’s Insurer Policy to
support a business transformation initiative. AMIG’s
business strategy recognized the requirement for
modern technology and business solutions that
would enable greater depth of automation, and
their strategic initiative, modernLINK, included
a web-based insurance transaction processing
platform, replacement of aging legacy systems,
and enhanced information management.
Innovation Policy supports AMIG’s commit-
ment to specialty insurance products for its customers and enhanced web-based support for distribution partners and policyholders alike. Additional
significant business value being achieved includes:
J The enablement of specialty products and a
service strategy that contributed to customer
retention and organic premium growth of 50
percent in the past five years;
J
Improved underwriting capabilities and
substantially lower costs that recur annually;
J Hundreds of thousands saved annually by AMIG
and the company’s distribution partners due to
improved productivity from new Internet self-
service options;
J Improved billing collections that enhance cash
flow; and
J Enhanced customer and revenue retention from
improved customer customer communications,
flexible billing payment plans and high quality
notices.
The implementation of Innovation Policy
provided enhanced product innovation, as well
as operational efficiencies and competitive
capabilities. Today, it is a cornerstone for their
continuous innovation, competitive differentiation,
and enhanced self-service options.
The underlying business functionality includes product development, pricing/
rating, underwriting, billing and policy processing and distribution support. Because
Innovation Policy is SOA based, it supported a phased implementation, allowed easier
integration with our existing environment and provided other advanced capabilities
for both in-house and web-based access. The solution enables enhanced product
configuration and pricing segmentation to design and offer specialty products based
on market conditions… right rate for every risk, at the right time.
- John Campbell, SVP and CIO, American Modern Insurance Group
www.us.innovation-group.com Insurance Insights
7
9. Future
IN THE WORLD OF INSURANCE today,
it is easy to get mired in traditional
methods, hampered by outdated
technologies, and let down by services
that were supposed to offer support. As
insurers drive along the road toward the
future, a strategic vision that includes
more fluid, agile organizations with
robust core software, analytics and BPO
solutions, that quickly and effectively
respond to change and embrace new
opportunities to empower innovation
and success are critical. There is a
new normal dawning in the insurance
industry. The right partner can help
you prepare for change and the future.
Act now, the future won’t wait.
#futureofinsurance
www.us.innovation-group.com Insurance Insights
9
10. A Claims Revolution
C
laims management is no
longer just about cost, but
increasingly about risk
management, supply chain
management, service excellence
and customer retention. Claims
solutions traditionally focus on claims
administration, ignoring parts of the
value chain in favor of cost efficiencies,
leaving significant benefits uncaptured
and risking competitiveness. These
administration solutions lack the
business
functionality
inherent
to claims management, which
enable
innovation,
transformation and
This version
sustainable operational
of Insurer Claims
results across the entire claim
represents an impressive
value chain.
upgrade from earlier
True claims management
versions in terms of
allows insurers to enhance
functionality, usability
customer service, improve
and configurability.
retention,
and
reduce
Insurer Claims is an
claims handling costs and
end-to-end claims
timeframes. More importantly,
management platform
it repositions claims as an
that also includes
integral part of efforts to
integrated analytics and
achieve sustainable innovation
management reporting.
and operational effectiveness.
Innovation Group’s
Insurers
managing
the
success with the array
entire claims value chain are
of delivery models
better positioned to manage
including license, BPO
premium costs, increase
and SaaS highlights the
customer value, and drive
solution’s flexibility and
profitable growth.
configurability.
A long-term vision
and plan transitioning to
-Donald Light, Senior
claims management can help
Analyst at Celent
“future-proof” business and
IT investments, and meet the
business demands of today
and tomorrow.
Claims Management for a
New Normal
Leading insurers are beginning to invest
in new claims management solutions to
transform their claims business. These
new solutions include broader capabilities
beyond traditional FNOL, adjustment and
settlement to supply chain management,
fraud, litigation, self-service technologies
and claims analytics to accelerate progress
toward goals, deliver increased business
value, market position, customer retention
and return on equity (ROE).
10
Insurance Insights
#futureofinsurance
Insurer Claims is a
componentoftheInnovation
Insurer Suite, an integrated
platform with best-ofbreed components (policy,
claims, analytics) using a
single data model, rules,
process and configuration
toolset. Insurer Claims
offers insurers core claims
capabilities in all claims
solutions, but goes much
further.
SUPPLY CHAIN
MANAGEMENT: Insurers
However, in order to achieve optimal
results and business value, new claims
solutions must include these broader
capabilities as well as integration with expert
BPO claims services, such as supply chain
management for repair networks, adjusters
and contractors, interactively across the full
claim value chain. Bottom line…robust claims
management solutions enable insurers of all
sizes to compete with top tier companies.
The industry continues to see a strong
demand for modern SOA, Java-based
claims management solutions that do more
than just out-perform legacy systems. Such
solutions are designed to rapidly adapt
to cyclical business changes, deliver new
services and real-time access, manage
outcome excellence and insight, all while
maintaining a low TCO and greater claims
operational flexibility.
Insurer ClaIms Delivers
Modern ClaIms Management
Critical to choosing a new claims
management solution is selecting one that
is functionally-rich, yet provides extensive
configurability to meet business-specific
requirements. It should include BPM
capabilities, a modern UI, a robust data
model, support industry standards, and a
SOA architecture with pre-built, reusable
services. Equally important, is extensive
real-time access, mobility enablement,
litigation, advanced scoring, supply chain
management, catastrophe management,
out-of-the-box rules and integration,
business analytics, and a forward-thinking
roadmap that anticipates future business
changes.
can integrate with their
supply chain or BPO
services, such as repair networks, glass
repairers, adjusters and contractors.
FRAUD MANAGEMENT: A fraud engine
with pre-built rules that evaluate 50 common
fraud indicators, and case management
functionality to support fraud investigations
from start to closure.
CATASTROPHE MANAGEMENT: Ability
to define catastrophes, identify claims, and
modify workflow and assignments.
GEO-CODING MANAGEMENT: Outof-the-box integration with Google Maps
and QAS to enable geo-coding and mapping
functionality throughout the claims process.
INSURANCE-SPECIFIC
ANALYTICS:
Proactively
analyze,
manage
and
grow your business with data-intense
decisioning, out-of-the-box dashboards
and key measures.
COMPLIANCE RISK MANAGEMENT:
Provides full audit-ability across the system
for changes and data, different brands or
companies to support Sarbanes Oxley and
other regulation using Insurer Configurator,
the configuration toolset.
LOWER TCO: No additional license,
maintenance or integration cost for Analytics,
Supply Chain Management, CRM and Billing.
STAFFING SKILLS OPTIMIZATION:
Broaden the pool of potential employees by
easing the pressure and lack of knowledgeable
and skilled staff with the UI design, language
and help capabilities.
Insurer Claims is a scalable, proven
business solution and an innovative alternative
to traditional systems, built and priced for
insurers of all sizes. Insurer Claims helps
insurers compete in the new normal.
11. Data Mastery:
Insurer Analytics Empowers Insurers
D
ata is the lifeblood of the
insurance industry. It
feeds, sustains and protects
insurance
organizations
of all types and sizes. It is used to
analyze performance and trends, to
plan and monitor high-level goals, and
to make critical decisions in the areas
of underwriting, claims, marketing,
customer service, product development,
regulatory compliance and finance.
Data is a strategic asset for insurers, but
one in which they lack the fundamental
“street smarts” that equate to business
insight and intelligence.
Solutions for a DataDriven Industry
Modern insurers must find solutions
that turn colossal quantities of data into
actionable insights. The sheer speed of
change today requires insurers to move
beyond automation efficiencies to focus on
business strategies.
Management
of
all
insurance
operations, from policy through claims, is a
complex and demanding business. During
these challenging times, the power of data
management and analytics can deliver
immediate and significant value to the bottom
line of an organization, but more importantly
help transform the business model and
practices to raise competitiveness. So the
question for your organization is... Do you
Innovation Group has raised the bar for
insurance analytics vendors. Innovation Group
has designed Insurer Analytics with the business
user in mind, incorporating feedback from
their insurance customers and analysts. This
new version of Insurer Analytics leverages the
Microsoft BI platform, while broadening and
deepening the insurance specific capabilities to
empower the business.
-Ben Moreland, Senior Analyst for Celent
know what you don’t know? If you don’t you
may be “bleeding” data and information.
Access to accurate, timely, relevant
Business Intelligence (BI) is key to dealing
with these challenges. Identifying emerging
EXceptional
Results:
J Implemented
in 3 months
J ROI achieved
in 1 month
issues before they grow into bigger problems,
directing resources to the greatest “point
of pain” or opportunity and highlighting
performance against benchmark targets all
combine to drive down costs and improve
performance. A flexible and comprehensive
BI system is needed to deliver this level of
sophistication into the value chain.
The Secret Sauce
Data analytics is the “secret sauce” needed
to change the competitive position for
an insurance company. Insurer Analytics
provides data-driven insights for broad use
across all major areas within an insurer.
At the heart of Insurer Analytics is the
philosophy of “guided analysis at speed.”
Our belief is that any analysis should
transform data into relevant and actionable
information that can be rapidly delivered
where it counts.
Insurer Analytics is a best-of-breed
insurance analytics solution that goes much
further by:
J mpowering the business with an easy to
E
use, accurate and intuitive solution that
enables business users and translates to
high adoption;
J roviding business agility with quick,
P
fast, accurate decisions based on quality,
accurate information;
J Enabling performance management across
the value chain to manage the business
from products, customers, and distribution
channels to partners across the entire
insurance value chain to
ensure both top and bottom
line exceptional results;
J ncorporating a library of
I
predefined PC insurance
analysis solutions aligned
to the rich data model; and
J unctioning as a businessF
focused solution for all
users through use of a
single data model specific
for PC insurance that is
extendable, providing a
single data management
platform to ensure a single
version of the truth.
Insurer Analytics ...
Built for Insurance
Our strategic
partnership with
Innovation Group, and
our selection of Insurer
Analytics will underpin
and strengthen our
business operations and
deliver value to our clients.
In evaluating a range of
solutions in the market
or considering building
our own solution, we
found Insurer Analytics
significantly exceeded
the capabilities of other
options, offering a value
proposition that will be
instrumental in providing
exceptional service and
proactive medical claims
management to our
clients.
-Linda Diekmann, partner at
Premier Prizm
Insurer Analytics is designed and built
for insurance professionals by insurance
professionals. It provides a robust, detailed
insurance data model reflecting the entire
insurance value chain and capabilities that
eliminate the additional time and cost to
set-up generic analytics solutions. Unique
company-specific data requirements are
architecturally and easily extendable in the
model. The primary design is for the business
user, but it also supports the power user who
has more advanced analytical needs, such as
underwriting and claims users. While IT
maintains control over the data, the business
has total control of the dashboards, charts,
maps, KPIs and reports for analysis.
www.us.innovation-group.com Insurance Insights
11
12. Innovation Insurance Services
Helps You Prepare for Change
L
Innovation
Group
knows claims and
handles more than
six million auto and
property claims and
incidents per year.
12
ast year rewrote insurance history
with record losses and CAT
events, including a 2011 tornado
and thunderstorm season that
when counted as a single event was the
4th costliest in U.S. insurance history and
the 5th costliest event in global insurance
history as noted by the Insurance
Information Institute.
Increased competition. Customer
service excellence. Claims transformation.
Claims indemnity costs. New products
and services. Business agility. These
market forces are creating disruption
and opportunity. How can you respond?
With a strategic partner who extends
and compliments your business with
competitive, sustainable business solutions.
Innovation Group. In an intensely
competitive PC insurance market,
insurers are focused on operational
effectiveness and innovation to drive
profitable growth.
Our clients’ results speak for themselves.
Consider that Innovation Group:
J Processed over one million claims in six
months for a major cat event;
J Managed the largest storm season
Insurance Insights
#futureofinsurance
in company history with double the
number of expected claims;
J Provided real-time analysis used to
effectively deploy adjusters and trigger
engagement of third-party adjusters;
J Delivered daily tracking of losses and
reserve management, plus reporting to
forecast reinsurance triggers;
J Closed claims 30 percent faster while
ensuring responsiveness and customer
service during a crisis situation; and
J Reduced loss adjustment expenses
13. Intake
Triage
Assign
Investigate
Evaluate
Negotiate
Settle
Subrogation
Novarica’s 2011 Market
Navigator™ U.S. BPO/Virtualized
Insurance Company Operations:
Property and Casualty Report
Insurer Claims Analytics
Innovation Insurance Services
MRN Managed
Report Network
Police Reports
Audit
Subrogation
Out of Network
Appraisal
FNOL
Intake
ISO Reports
Rental
Management
Adverse
Subrogation
Total Loss
IA Management
Salvage
Contractor
Report
Out of Network
Report
This report highlights that
Innovation Group supports
all PC lines of business, and
has live U.S. clients in personal
auto, property/homeowners,
workers’ compensation, and
admitted commercial lines with
170 U.S. clients live on claims and
customer service and more than
50 live for document creation
and management. This includes
approximately 20 clients with
more than $1 billion in annual
premium.
Lien Release
Management
Desk Revision
Heavy
Specialty Equip
Emergency
Temporary
Service
PRN Network
Innovation Group Supply Chain
(LAE) and indemnity spend by eight to
ten percent and claims leakage and cost
by ten percent.
To achieve results like these, insurers
need a partner with a competitive, bestof-breed claims management solution
designed to optimize business and
customer results.
To achieve optimal value, insurers
must address the entire claim value chain,
including areas such as FNOL, appraisals,
rental management, repair referrals and
payments, subrogation, salvage, analytics
and potential fraud. Insurers who do not
consider these broader claims capabilities,
Innovation
Group
U.S. BPO
operations
provide a
broad set of
BPO services,
including their first notice of loss
call center and the managed
repair networks for auto and
property, with one of the largest
customer bases in the U.S.
market.
leave significant benefits unrealized.
The combination of core claims
process with our BPO expert services can
provide the greatest impact on total claim
outcome, claim optimization, combined
ratios, customer retention and reallocation
of resources to growth initiatives.
Innovation First Notice
First notice of loss (FNOL) is the “moment
of truth” for insurers when it comes
to customer service. At this point, the
service can be enhanced, the customer
can be retained, and the claim cost can be
managed. Consolidating and automating
-Matthew Josefowicz,
Managing Director at Novarica
Hastings Mutual Insurance Company
(Hastings Mutual) Success Story
B
uilding on a 125 year-old legacy
of success, a U.S. regional insurer
implemented an auto growth strategy
resulting in almost 37 percent growth in
personal auto direct written premium and
almost 28 percent growth in policies in force
with no increase in staff, increased recovery by
20 percent or $1.2m and a 67 percent savings
increase per claim with annual savings of nearly
$2.4m using Innovation Group’s Auto business
process services. The strategic impact was a
foundational shift of claims as a cost center to
a market differentiator operation enabling them
to maintain LAE at 8 1/2 points, positing them as
best in class.
Our strategic partnerships must replicate the quality services our policyholders have
come to expect from Hastings Mutual. Hastings Mutual dedicates a considerable amount of
time ensuring our vendors provide the type of customer support we’ve built our reputation
upon. Innovation Group has met and exceeded our expectations by delivering service and
choice to our customers while providing ease of business for our agency group.
— Chris Ballantyne, Vice President of Claims for Hastings Mutual
www.us.innovation-group.com Insurance Insights
13
14. cost of repair is consistent with the actual
damage to the vehicle.
Innovation Property
the initial claim touch point is the earliest
and richest opportunity to improve and
accelerate the claim-handling process.
Innovation First Notice provides leading
call center and FNOL services, and strives
to maximize the business results of each
loss report using our claims expertise
and capabilities, as well as key partners,
to positively affect the entire claims
management process.
By leveraging Innovation Group’s PC
business expertise and scale of Innovation
First Notice, insurers can leverage new
opportunities, best practices, ideas and
products into their existing claims model
to enhance their customers’ service
experience, including use of ACORD or
insurer specific loss forms. Innovation
Group can handle all or some of your FNOL
needs, including after-hours, overflow or
catastrophic events.
Innovation Auto
PC insurers know that Auto Physical
Damage (APD) claim units can impact
their customer satisfaction and claim costs.
Innovation Auto services can meet and
exceed the capabilities of most insurer’s
operations, providing a competitive option
for insurers of all sizes. Innovation Auto
14
Insurance Insights
#futureofinsurance
enables insurers to capitalize on these
opportunities, by providing specialized
expert business process (BPO) services
that integrate with our industry leading
core claims software, Insurer Claims.
The backbone of our expert services
is our managed repair network of over
2500 shops, which is much more than
just a list of repair shops. Our network of
repair shops meet strict guidelines relating
to facilities, equipment and training, as
well as performance goals for customer
service, cycle time, quality estimating
and repairs. Innovation’s repair network
offers nationwide coverage with a choice of
shops, consistency and a lifetime warranty
on the work performed. Also included 24
X 7 toll free customer support, electronic
file processing, repair assignment and
oversight.
Our managed network ensures your
customers are taking their vehicles to the
most trusted, reliable body shops while
benefiting from the buying power of a
large network provider. Our ICAR Gold
Certified Collision Department, with
qualified technicians averaging 20 years
of PC experience, reviews all images and
estimates that come through our electronic
loss adjusting system to ensure that the
With property losses, PC insurers face
two major challenges…customer claims
experience and controlling paid loss.
Innovation Property enables insurers to
capitalize on these challenges, by providing
specialized expert business process (BPO)
services that integrate with our industry
leading core claims software, Insurer
Claims, a unique and compelling solution
that no other provider can offer.
Innovation Property is a leader in
managing the repaid of residential and
commercial property insurance claims,
and maintains the industry’s first best-ofbreed contractor network. Key attributes
of Innovation Property include:
National network of over 900+
managed contractor services, including
“roofing only” general contractors to
optimize availability and customer
satisfaction
Deep PC expertise in managing
residential and commercial property
losses
Unique approach to driving favorable
financial outcomes, customer satisfaction
and best in class cycle times
Rigorous due diligence standards used
to credential each contractor including
proper licensing, service delivery guarantee,
detailed financial reviews, criminal and sex
offender checks, annual check for adequate
insurance coverage and credit check
Flexibility to add and remove
contractors to build a tailored network and
estimating guidelines
Three (3) year warranty on
workmanship and 5 year roofing warranty
on replacement
From the time when a FNOL is
reported, your policyholder is provided
a choice of contractors to help them fix
their loss quickly and in a quality manner.
Without standardized communication
of data and information between the
contractor, insurance company and
insured, the scope and approach for
mitigating and settling the loss can be
agreed upon quickly, significantly lowering
the paid loss on the claim.
15. The Future of Insurance…Start Your
Journey with Innovation Group!
I
nsurance is about managing risk and
sharing risk exposure across a wide
number of people or organizations.
Today’s new normal exposed strategic
and operational risk within insurance
companies highlighting legacy paradigms
of business models, customer expectations,
distribution channels, core insurance solutions
and delivery models. Adding to the risk is the
convergence of trends including mobility,
social media, explosive growth of data,
analytics, product and service innovation,
and SaaS and Cloud delivery options. The
result ... intense competition, growth and
profitability pressures, and challenges to longterm viability.
We are seeing before our eyes, the
changing face of the insurance industry. The
industry is at the threshold of significant
change, fueled by these opportunities and
challenges, applying pressure to evolve the
legacy paradigm. Insurers must embrace
innovation, disruption, and new technologies
to manage and leverage these risk factors
to create a new paradigm of competitive
advantage.
While the future of insurance may
be hard to predict, it is imperative that a
roadmap for the future embrace innovation,
transformation and optimization by using
new partners who are disrupting long-held
industry traditions. So how can insurers get
to this new future? Do they follow others or
set a unique course for innovation? What
strategic partners help “fuel” innovation and
offer non-traditional solution paradigms?
How will insurers avoid the “lemming
effect”?
History teaches us that the “it” vendor
or the “leading incumbent” gathers many
followers, who go along unquestioningly
with popular opinion, but with potentially
competitive consequences ... just like
lemmings lore when they gather large
numbers on the move and can mindlessly go
over the cliff or into a trap, offering no easy
way out.
Business, product, service, process
and technology innovation are coming to
market at a mind-boggling pace. So, how do
insurers set a course to the future and become
truly “next gen” businesses? Given limited
resources, expertise, knowledge and time,
insurers must strategically place their bets and
investment with partners who offer more than
“traditional vendors”. These partners have
strategies and plans to disrupt incumbents in
the next 3 years; a vision and roadmap of the
future using emerging technologies; offer an
array of delivery models that can change; and
new ideas and experience outside insurance
that fuel disruption and innovation. Because
of this, these partners avoid the risk of the
“lemming effect” by avoiding the risk of
following others and concentrating your
future with others, becoming one of the pack
rather than an innovator.
Insurers’ visions of the future must
include more fluid, agile organizations with
robust core software, analytics and BPO
solutions, that quickly and effectively respond
to change and embrace new opportunities
to empower innovation and success. We
are on the brink of a new era in the PC
insurance industry. An era of new business
models as companies take advantage of new
technologies, delivery options and markets
to reinvent themselves, create new levels of
competition and “build for change.”
Innovation Group is that “new, nontraditional” vendor with a vision and
roadmap that offers innovative, forward
thinking solutions. We have uniquely brought
together the internal and external end to end
value chain for PC insurance through our
industry leading software, Innovation Insurer,
and our BPO services, Innovation Insurance
Services, providing a “best of breed” solution
portfolio that enables business agility, process
optimization, customer centricity, while
empowering the business to grow, scale and
change to capture market opportunities
quickly and cost effectively.
Stand out from the crowd. Be a leader and innovator.
Begin today and set your course on a journey to the future with Innovation Group.
www.us.innovation-group.com Insurance Insights
15
16. Innovation Solutions
are a hit!
Here are a few of
the most recent
awards Innovation
Group has received.
20
12
The insurance analyst community is buzzing about Innovation Insurer and
Innovation Insurance Services. Innovation Group has recently been awarded for
overall functionality, modern technology, and ROI delivered for customers!
banshee
96
88
87
81
97
97
94
86
87
Silver
Ranking
5-Customer
Viewpoint
86
INOVATION GROUP: INSURER CLAIMS (2012)
86
94
INNOVATION GROUP: INNOVATION AUTO (SERVICE) (2012)
CELENT Breadth of Functionality 2011
CELENT Advanced Technology 2011
CELENT Customer Base 2011
Breadth of Functionality
Advanced Technology
Customer Base 2011
2011
2011
#futureofinsurance
Begin your journey with Innovation Group solutions!
76 Batterson Park Road
Farmington, CT 06032
United States
t: 860.674.2900
f: 860.674.1059
e
: info@us.innovation-group.com
