Title: 2006 General Meeting
1Canadian Institute of Actuaries
LInstitut canadien des actuaires
- 2006 General Meeting
- Assemblée générale 2006
- Chicago, Illinois
2Canadian Institute of ActuariesNew Business
Process EfficienciesJym Barnes
3Introduction
- 1986 became very interested in the Internet
- Seamless integration system to system device to
device - Saw the Internet as a power grid
- Every business process possible connected through
the power grid - Purchasing an item online and tracking the
shipping - Scheduling a trip
- Later known as Straight Through Processing or STP
- Digital thread
- Holy grail of workflow
- 1996 came to the insurance industry by accident
- Infatuated with STP
- Underwriting in the family blood
4Straight Through Processing (STP)
- Data passing from one business process to another
independent of computer system, organization,
country, etc. - A digital thread through intermediate business
transactions to complete some overall transaction
5UW Unusual Characteristics
- Perfect example of the power grid concept
- Many independent stakeholders involved in an
underwriting decision (transaction) - Distributors
- Outsource providers
- Paramedical companies
- MIB
- Labs
- MVR Providers other evidence providers
- APS Providers
- Physicians
- Reinsurers
- Carriers
6Underwriting Issues
- Shortage of underwriters
- Completely disconnected processes
- Expensive
- Long
- Same data captured multiple times
- Limited management information
7STP in the new business process is a difficult
problem with huge upside if solved!
8What is needed?
- Faster cycle times
- Lower cost of processing a case
- Provide as good or better assessment of the risk
- Provide ability to better understand the risk
- Real-time
- Historic management information
9Two concepts to solve this problem
- Digital thread from app entry through issue into
historic risk analysis - Structured data (information) passed
- Enriched during each step along the way
- Extensive underwriting rules available at every
point throughout the process
10Digital thread
- Structured data
- eXtensible Markup Language (XML)
- Metadata
- Information
11Information, defined as knowledge in communicable
form
12What is XML?
- XML is the language for data on the Internet
- What does that mean for a life carrier?
- Also known as Meta-data or structured data
- Provides the opportunity to turn data into
information
13James Robinson Barnes111 Clear Meadow
DrBallwin, MO 63011
14- ltNameAndAddressgtltfirstgtJameslt/firstgtltmiddlegtRob
insonlt/middlegtltlastgtBarneslt/lastgtltstreetgt111
Clear Meadowslt/streetgtltcitygtBallwinlt/citygtltstate
gtMOlt/stategtltzipgt63011lt/zipgtlt/NameAndAddressgt
15XML Value
- Simple yet an incredibly important building block
- Easier connectivity becomes possible
- Plug-n-play becomes possible
- Internet is what makes XML even more valuable
16Partial solution
- XML is only part of the solution
- How do we know what to tag the information with?
17Underwriting rules are the key to generating
meaningful XML!!
18Underwriting Rules
- Questions and reflexive questions
- Scripts
- Extensive data dictionaries
- Impairments, medicines, occupations, aliases
- Decisions ratings flat extras
- Requirements ordering
- Workflow logic
- Build age/coverage
- Labs, MIB, MVR analysis
19If you dont have a rule for the data entered
significant value is lost!
20Example
- Do you have asthma
- How many attacks do you have per month
- 0 3
- Do you use tobacco
- 4 7
- Do you use tobacco
- 8 9999
- Do you use tobacco
21XML Generated
- ltdisclosuregt
- ltimpairmentgt
- ltimpairmentTypegtAsthmalt/impairmentTypegt
- ltbodySystemgtRespiratorylt/bodySystemgt
- ltmedicalgtyeslt/medicalgt
- ltmaterialgtyeslt/materialgt
- ltseveritygtseverelt/severegt
- lt/impairmentgt
- lt/disclosuregt
22Enrichment
- Rules turn data into information
- Rules then turn the information into actions and
more information - And so on and so on
23XML Generated
- ltdisclosuregt
- ltimpairmentgt
- ltimpairmentTypegtAsthmalt/impairmentTypegt
- ltbodySystemgtRespiratorylt/bodySystemgt
- ltmedicalgtyeslt/medicalgt
- ltmaterialgtyeslt/materialgt
- ltseveritygtseverelt/severegt
- lt/impairmentgt
- lt/disclosuregt
24XML Enriched
- ltriskAssessmentgt
- ltdecisiongtRUWlt/decisiongt
- ltrequirementsgtAPS (Pulmonary Function
Testlt/requirementsgt - lt/riskAssessmentgt
25XML Enriched
- ltworkflowgt
- ltpushCasegtSeniorUWlt/pushCasegt
- ltwaitgt5 dayslt/waitgt
- ltalarmgt1 daygtlt/alarmgt
- lt/workflowgt
26Rules are involved everywhere
UW Rules
27Historic Management Information
- All XML stored for later reporting
- Demographics
- Impairment analysis
- Requirement analysis
- Decision analysis
- Trend analysis
- Ability to combine with claims
- What if scenarios
28Components of the solution
- Digital thread through the new business process
- XML is the key ingredient to make a digital
thread possible - Extensive underwriting rules necessary to create
meaningful XML
29Where are we at today?
- MIB supports XML
- LabOne supports XML
- Several administration system vendors support XML
- Several illustration system vendors support XML
- Underwriting system vendors support XML
30Tomorrow?
- The opportunity exists today to connect a
majority of the new business components and
stakeholders using XML - A digital thread throughout the new business
process is within sight - Some companies are further along than others in
implementing STP - A vast majority are moving in this direction
31Every new solution must connectto every other
solutionorit will be your next problem!
32Q A
33Contact Info
- Jym Barnes
- jbarnes_at_rgatp.com
- 636-736-7208