Hear insurance industry expert Craig Bedell and Decision Management expert James Taylor discuss the importance of digital decisioning to improving insurance productivity. See slides with audio here: https://youtu.be/YgCOkc23s8k

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James Taylor and Craig Bedell
Increasing Productivity in Insurance
Operations with Digital Decisioning

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Your Goals
 Learn how to improve insurance
productivity
 See how digital decisioning will
help your organization

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Our Goals In This webinar
 Help you understand why insurance productivity is not rising
 Convince you that a ‘focus on basics’ offers benefits across the entire
organization
 Introduce the idea of digital decisioning
 Show you how digital decisioning drives insurance productivity
James
Taylor
Craig
Bedell

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AGENDA
© 2019 Decision Management Solutions
Underwriting and Pricing Productivity
Claims Productivity
Distribution Management Productivity
Defining Digital Decisioning
Getting Started
Q&A

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“Most carriers are struggling to meet their cost of capital,
and productivity has barely moved over the past decade.”
“Unlike other industries, which have been able to
capitalize on their investments in digital technologies,
insurance hasn’t increased its overall productivity in the
past ten years.”
The Productivity Imperative In Insurance

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Quick Payoff for listening
When you’re an insurance company
Productivity depends on decision-
making
Digital investments don’t improve
productivity unless you fix
decisions first

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Underwriting and Pricing Productivity

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Underwriting and Pricing Productivity
Prompt response to qualified submissions
Hit rate for quoted business
Retention rate on desirable renewals
Consistency and adherence

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Digital Decisioning in Underwriting
 Business problem
 Avoid adverse selection and deliver straight
through processing in specialty auto
 Results
 75% Straight Through Processing
 20% Increase in agents quoting
 50% Increase in written premium
 Solution
 Predictive analytic model to target pricing based
on risk
 Business rules to enforce policies and regulations
 Every quote saved for analysis and continuous
improvement

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Ineffective Investments in Underwriting
 Set a clear appetite guide
 Risk score applications
 Develop surrogate risk insights
 Develop special coverage
programs
 Conduct portfolio risk analyses
and reinsurance strategy review
 But don’t define how to
consistently apply it
 But don’t integrate the score into
underwriting and rating
 But use cumbersome legacy
decision-making
 But don’t define new risk
selection approach
 But don’t tie to individual case
decisions

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Claims Productivity

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Claims Productivity
Reserving at FNOL
Customer Satisfaction Scores
Litigation rates
Time to Settlement
Follow-up Activities

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Digital Decisioning in Medical Claims
 Business Problem
 Deliver 20%+ STP of medical claims across
chatbot, mobile, online, direct from hospital
 Results
 50% Straight Through Processing
 Weekly updates
 Business User Control
 Solution
 Manage risk with cautious as-is rollout
 Business-led continuous improvement
 Simulation and impact analysis
 8% STP on day 1, 28% on day 100, 50% on day 250
0%
10%
20%
30%
40%
50%
0 50 100 150 200 250
Days
STP Rate

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Ineffective Investments in Claims
 Digitize claims data
 Digitize 100% of the claims
process
 Do analytics to report on wastage
and fraud
 Invest in fraud case management
and investigation
 But just replace a manila folder
with a digital one
 But still review each claim by
hand
 But don’t change how claims are
approved
 But engage in fruitless “pay and
chase” fraud detection

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Distribution Management Productivity

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Distribution Productivity
Quality scores on risk submitted
Submitted/ Quoted rates
Quotes Taken or Bind rates
Producer Productivity
Up-Sell and Cross-Sell

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Digital Decisioning in Distribution
Up-Sell and Cross-Sell in agent POS
 Business problem
 How to increase the Annual Premium
Equivalent (APE) of sales made by agents
using mobile app to work with new clients
 Results
 $6,000,000 in APE uplift
 >98% Agent adoption
 14-24%+ Acceptance
 Solution
 Decision service used financial data captured
from client and proposed purchase to suggest
intelligent up-sell or cross-sell
 Seamless integration into sales conversation
 Also integrated into customer portal
“It’s like finding dollar bills lying in the
street. The ROI is enormous and the
effort tiny.”—CFO

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How To Spend Money on Distribution Without A Return
 Agent and Agency Management
mobile apps
 Digital lead generation for
agency force
 Pre-approval guaranteed issuance
 Research risk trends, exposure
analyses and lifestyle insights
 But just provide passive data
review not active suggestions
 But route and manage leads
ineffectively
 But blanket offers not customer-
focused first best offer
 But don’t integrate cross-sell and
up-sell into agent selling process

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Digital Decisioning

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Digital Decisioning
 Digital decisioning
 capitalizes on analytical insights about customers and business operations
 to automate actions for individual customers through the right channels
 It:
 Automates operational decisions that lead to actions
 Operates in real time and at scale
 Seeks completely automated decisions and actions
 Continually improves through feedback loops
 Runs on platforms that integrate analytics, rules, and process

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Decision Management:
Three steps to digital decisioning
DecisionsFirst™
Design Thinking
Mix and Match
Technology
Continuous
Improvement
Think about decision design first to build a
decision model and drive practical
innovation
Business rules, analytics, machine learning
and AI under a decision umbrella, deployed
as a decision service
Analyze decision-making to drive business
learning and focus on gradual improvement

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Getting Started

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Get Everyone On The Bus
 Business
 IT
 Operations
 Analytics

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There’s Something For Everyone
Business Owner
Control
Analytic Insights in
Production
Operational
Transparency Clean Integration with
Legacy Systems
Continuous
Improvement

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Improving Productivity In Insurance
 Improving Productivity Means Improving Decision-Making
 Digital Business Means Digital Decisioning
 Digital Decisioning
 Increases the speed of decision-making
 Lowers the cost of decision-making
 Increases the accuracy of decision-making
 Improves the consistency of decision-making
 Delivers agility in decision-making

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Your Questions
Enter questions
for the Q&A here
James Taylor, CEO
james@decisionmanagementsolutions.com
Craig Bedell
cbedell90@hotmail.com

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Thank You
 More resources for boosting
insurance productivity on our
website
 bit.ly/DecisionInnovationIns
 Decision Management Solutions
works with clients to improve
their business by applying
business rules and analytic
technology to automate and
improve decisions.
 We can help you improve your
productivity with our
DecisionsFirst approach.

28. Thank You
For more on
Decision Management, go to:
decisionmanagementsolutions.com
© 2019 Decision Management Solutions