Policy administration, claims and billing transformation
The P&C transformation imperative
There is currently an unprecedented opportunity for insurance carriers to transform their business and leapfrog their competition through improved product and pricing flexibility, speed to market, and customer services, as well as reduced indemnity payments and lower costs. The convergence of aging legacy platforms, complex market demands and more demanding clients has created the need for change. A new breed of technology platform helps enable this transformation.
Carriers have known for years that their legacy policy administration, claims and billing systems are out-of-date, but have largely worked around them with manual processes and one-off technology efforts. However, today's competitive environment, pricing pressures and changing market dynamics are forcing carriers to consider a more dramatics approach. The result has been a move to replace the full suite of applications carriers have been using to run their business. The new systems allow carriers to realize efficiencies, gain flexibility and organize their data for business analytics. Carriers that do not adapt risk losing market share while experiencing continually escalating costs.
How PwC can help
PwC provides insurance companies with a customized approach to core insurance systems transformations. We specialize in the following key areas:
- Transformation strategy and roadmap: PwC helps property and casualty carriers develop transformation strategies and roadmaps based on leading practices to meet specific business and technical requirements for billing, claims, policy administration and underwriting. We utilize a proven estimation methodology that helps effectively determine necessary outlay for these projects and can help build an industry validated and company specific target operating model that allows clients to better respond to customers, regulators and competitive threats.
- Policy administration system selection: PwC helps clients to define their organizations’ business drivers, unique processes, and high-level requirements to develop the evaluation criteria that enable system selection. With these evaluation criteria, PwC helps clients search the marketplace for viable system solutions and evaluate responses from an independent, unbiased perspective.
- Business and technology implementation: PwC helps clients implement new systems by leveraging our accelerators and knowledge base from numerous global projects of all sizes, including:
- Process narratives, flows and architectural designs, including specific and detailed business processes and rules
- Pre-built integration adapters
- Data conversion mapping for common internal and external system and partners
- Testing and training documentation
- Leveraging offshore resources for cost-effective implementation
- Strategy through execution: PwC helps clients from initial strategy work through implementation. This increases the effectiveness of each major stage of a transformation. We help carriers define a case for change and evaluate implementation scenarios upfront, before actually undergoing change. With a clearly defined future state vision, we help clients set up a proof of concept to help them select a best fit solution. We work alongside our clients to define and establish a structure and set of tools that prepares them for a successful implementation. In short, we understand how to run complex programs involving technological change and deliver definable benefits to clients’ business.
- Organization readiness and change management: PwC can help you avoid the risks of a failed implementation resulting from lack of stakeholder buy-in, inability to articulate the benefits of the change, and/or inadequate upfront planning. Preparing an organization to effectively and successfully use the latest technology requires changing fundamental behaviors via user training, deployment planning, communications organization and process change. PwC helps clients assess the requirements for and impact of these activities so they can make the most effective use of product suites.
- Hosting and application management: Including infrastructure hosting (as needed), ongoing management and maintenance of apps, enhancements and upgrades, and leveraging offshore resources for cost-effective implementation.
- Execution of large-scale transformational programs: PwC specializes in project execution and helps companies successfully transform the business and improve business processes. We know why, where, how, and in what sequence critical elements such as strategy, structure, people, process and technology need to be addressed – and even more importantly, integrated. Our offshore capabilities help clients accelerate execution and lower the total cost of ownership.
The benefits to clients
A PwC-led transformation has the potential to:
- Decrease underlying costs and overall expense ratio by over ten percent by:
- Retiring legacy systems and simplifying existing ones;
- Eliminating redundant platforms and processes;
- Lowering maintenance efforts;
- Increasing operational efficiencies by re-designing business processes, reducing data entry, and increasing productivity;
- Increase premium growth by improving speed to market, automating risk assessment, and modernizing technologies, all of which decreases data entry points, increases
- customer self-service, and enables resources to focus on higher value tasks;
- Decreased turnaround time for quoting and simplification of new business processes that can help insurers achieve up to 50% more binds.
- Expand business analytics, reporting, and data mining;
- Improve consistency of vendor services outcomes;
- Provide clear direction and practical recommendations while balancing goals around customer, process cost, and loss;
- Improve identification of high quality referrals; and,
- Improve customer service with enhanced billing capabilities, and delivery and payment options that result in greater customer satisfaction.
Our systems transformation credentials include:
- Over 500 advisory professionals with US claims, billing underwriting and policy administration experience who have consulted or worked for leading carriers, brokers, reinsurers and insurance technology vendors.
- A multi-disciplinary team with expertise in audit, tax, actuarial, advisory and forensic services.
- Extensive, published insights into strategy operations and execution. We have released numerous whitepapers and articles on policy, underwriting, billing and claims transformation.
- Expertise in core systems, with resources in North America, Europe and Asia-Pacific.
- Numerous projects in core systems strategy, legal management, process design, systems selection, metrics and organizational structure.
- More than 45 successful core system implementations in the last three years, as well as multiple ongoing claims business and systems projects. In fact, PwC is one of the only service providers to have taken a policy administration implementation from business case to roll-out.
- Development centers with Insurance trained and certified resources in Bangalore, Shanghai, Bratislava, Belfast, and Columbia, SC.
- Solution knowledge from strategic relationships with key insurance vendors and related technologies such as Guidewire, HP/EDS, PeopleSoft, SAP/Business Objects, Siebel/Oracle, Avaya, Pegasystems, and Cognos content management tools and integration technologies.