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2006 General Meeting

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1996 came to the insurance industry by accident. Infatuated with STP ... 2006 General Meeting. Assembl e g n rale 2006 ... Some companies are further along than ... – PowerPoint PPT presentation

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Title: 2006 General Meeting


1
Canadian Institute of Actuaries
LInstitut canadien des actuaires
  • 2006 General Meeting
  • Assemblée générale 2006
  • Chicago, Illinois

2
Canadian Institute of ActuariesNew Business
Process EfficienciesJym Barnes
3
Introduction
  • 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

4
Straight 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

5
UW 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

6
Underwriting Issues
  • Shortage of underwriters
  • Completely disconnected processes
  • Expensive
  • Long
  • Same data captured multiple times
  • Limited management information

7
STP in the new business process is a difficult
problem with huge upside if solved!
8
What 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

9
Two 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

10
Digital thread
  • Structured data
  • eXtensible Markup Language (XML)
  • Metadata
  • Information

11
Information, defined as knowledge in communicable
form
12
What 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

13
James Robinson Barnes111 Clear Meadow
DrBallwin, MO 63011
14
  • ltNameAndAddressgtltfirstgtJameslt/firstgtltmiddlegtRob
    insonlt/middlegtltlastgtBarneslt/lastgtltstreetgt111
    Clear Meadowslt/streetgtltcitygtBallwinlt/citygtltstate
    gtMOlt/stategtltzipgt63011lt/zipgtlt/NameAndAddressgt

15
XML 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

16
Partial solution
  • XML is only part of the solution
  • How do we know what to tag the information with?

17
Underwriting rules are the key to generating
meaningful XML!!
18
Underwriting 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

19
If you dont have a rule for the data entered
significant value is lost!
20
Example
  • 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

21
XML Generated
  • ltdisclosuregt
  • ltimpairmentgt
  • ltimpairmentTypegtAsthmalt/impairmentTypegt
  • ltbodySystemgtRespiratorylt/bodySystemgt
  • ltmedicalgtyeslt/medicalgt
  • ltmaterialgtyeslt/materialgt
  • ltseveritygtseverelt/severegt
  • lt/impairmentgt
  • lt/disclosuregt

22
Enrichment
  • Rules turn data into information
  • Rules then turn the information into actions and
    more information
  • And so on and so on

23
XML Generated
  • ltdisclosuregt
  • ltimpairmentgt
  • ltimpairmentTypegtAsthmalt/impairmentTypegt
  • ltbodySystemgtRespiratorylt/bodySystemgt
  • ltmedicalgtyeslt/medicalgt
  • ltmaterialgtyeslt/materialgt
  • ltseveritygtseverelt/severegt
  • lt/impairmentgt
  • lt/disclosuregt

24
XML Enriched
  • ltriskAssessmentgt
  • ltdecisiongtRUWlt/decisiongt
  • ltrequirementsgtAPS (Pulmonary Function
    Testlt/requirementsgt
  • lt/riskAssessmentgt

25
XML Enriched
  • ltworkflowgt
  • ltpushCasegtSeniorUWlt/pushCasegt
  • ltwaitgt5 dayslt/waitgt
  • ltalarmgt1 daygtlt/alarmgt
  • lt/workflowgt

26
Rules are involved everywhere


UW Rules
27
Historic 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

28
Components 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

29
Where 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

30
Tomorrow?
  • 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

31
Every new solution must connectto every other
solutionorit will be your next problem!
32
Q A
33
Contact Info
  • Jym Barnes
  • jbarnes_at_rgatp.com
  • 636-736-7208
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