Zurich's Claims Transformation - Pegasystems Inc.
Zurich's Claims Transformation - Pegasystems Inc.
Zurich's Claims Transformation - Pegasystems Inc.
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Zurich’s <strong>Claims</strong> <strong>Transformation</strong><br />
Josh Logan, Assistant Vice-President, Zurich<br />
Dinesh Karanam, Senior Manager,Capgemini<br />
© 2012 <strong>Pegasystems</strong> <strong>Inc</strong>.
Agenda: Zurich’s <strong>Claims</strong> <strong>Transformation</strong><br />
What is driving <strong>Claims</strong> <strong>Transformation</strong>?<br />
Why BPM?<br />
What Success Factors have been Critical?
Zurich Insurance Group<br />
• Is a leading multi-line insurance provider with a global<br />
network of subsidiaries and offices in Europe, North<br />
America, Latin America, Asia-Pacific and the Middle<br />
East as well as other markets<br />
• Founded in 1872, headquartered in Zurich,<br />
Switzerland<br />
• Employs about 60,000 people serving customers in<br />
more than 170 countries<br />
• Zurich in North America is a leading commercial<br />
property-casualty insurance company, serving the<br />
global corporate, large corporate, middle market,<br />
specialties and programs sectors.<br />
• Zurich Global Life offers life insurance products and<br />
services.<br />
• 2012 marks <strong>Zurich's</strong> 100 year anniversary of insuring<br />
America and the success of its customers,<br />
shareholders and employees<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
In collaboration with<br />
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Internal Drivers Coupled with a Difficult<br />
Marketplace Has Made <strong>Claims</strong> <strong>Transformation</strong><br />
Critical<br />
<strong>Inc</strong>reasing<br />
Process<br />
Complexity<br />
Observation<br />
• Inability to access<br />
claims data needed<br />
to detect fraud<br />
• Missed opportunities<br />
for salvage,<br />
subrogation and thirdparty<br />
recovery<br />
Implication<br />
• Fraud accounts for<br />
nearly 10–15% of the<br />
loss ratio<br />
• Missed recovery<br />
opportunities have<br />
considerable<br />
implications on the<br />
profitability<br />
Lacking<br />
Customer<br />
Centricity<br />
<strong>Inc</strong>reasing<br />
Risks: Fraud,<br />
Litigation<br />
Key<br />
Challenges<br />
for <strong>Claims</strong><br />
Organization<br />
Changing<br />
External<br />
Environment<br />
Aging<br />
Technology:<br />
Inefficient<br />
Processes<br />
Observation<br />
• Multiple<br />
disparate legacy<br />
platforms<br />
• Lack of<br />
integration<br />
with internal and<br />
3 rd party<br />
systems<br />
Implication<br />
• <strong>Inc</strong>reased<br />
claims<br />
settlement time<br />
and cost<br />
• Declining<br />
customer<br />
satisfaction<br />
levels<br />
Source: (a) Capgemini Analysis, 2010<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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4
As a Result Organizations are Defining<br />
Strategies to Drive Their Decision Making<br />
Basis of Competition<br />
Level 3 Level 2 Level 1<br />
Efficiency<br />
Meet<br />
Outcomes<br />
Dominate<br />
Access<br />
Meet<br />
Service<br />
Experience<br />
Differentiate<br />
Differentiate<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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What’s is the P&C World Doing to Address<br />
Technology <strong>Transformation</strong> Impacting <strong>Claims</strong>?<br />
1<br />
Modern policy and claims<br />
management<br />
6<br />
Product development and<br />
configuration solutions<br />
2<br />
Web services and SOA tools:<br />
7<br />
Web 2.0 and social networking<br />
technology<br />
3<br />
Business intelligence and analytics<br />
8<br />
BPM solutions, including workflow<br />
and rule engines<br />
4<br />
Predictive modeling tools<br />
9<br />
Portal and Internet technologies<br />
5<br />
Advanced fraud detection solutions<br />
10<br />
Mobile devices/technologies<br />
1<br />
Source: Gartner http://www.gartner.com/it/page.jsp?id=1335313<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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BPM Enables Business Objectives<br />
Customer experience<br />
Operational efficiencies<br />
Employee satisfaction<br />
Performance management capabilities<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
In collaboration with<br />
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Our <strong>Transformation</strong> Strategy<br />
Rip and replace….not needed in our<br />
situation<br />
Extend and supplement current<br />
system with enriched capabilities<br />
• BPM<br />
• SOA bus<br />
• Modernization of legacy<br />
components<br />
• User experience….one stop shop<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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Roadmap Development is Critical<br />
Current State Assessments…what<br />
are our pain points?<br />
Future State To Be<br />
Processes…simplify, eliminate,<br />
automate<br />
Future State Architecture<br />
Delivery Roadmap…our contract<br />
to our Sponsor<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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9
Agile Scrum Methodology – WHY?<br />
Push for early benefits<br />
No clear defined scope<br />
Build in steps / layers<br />
Focus on highest value<br />
Respond to change<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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Roles and Distributed Teams<br />
Business<br />
Owner<br />
Product<br />
Owner<br />
Delegate<br />
Scrum<br />
Master<br />
SCRUM Team A (Theme 1)<br />
SCRUM Team B (Theme 2)<br />
Offshore<br />
Product<br />
Owners<br />
Architects<br />
SCRUM Team C (Theme 3)<br />
Business<br />
Process<br />
Consultants<br />
Product<br />
Owner<br />
Delegate<br />
Scrum<br />
Master<br />
SCRUM Team D (Theme 4)<br />
Offshore<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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Managing the Scrum Requires<br />
Discipline<br />
Daily standups<br />
Daily / weekly huddles<br />
Impromptu breakouts<br />
Weekly leads meeting<br />
Monthly steering<br />
committee meetings<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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Distributed Scrum has its Challenges<br />
Challenges<br />
• Geography<br />
• Collaboration<br />
• Agile readiness<br />
Lessons Learned<br />
• Respect and follow SCRUM values<br />
• Travel<br />
• Empowerment!<br />
• State-of-the-art collaboration<br />
tools<br />
• Promote continuous improvement<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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Keys for Success<br />
Strong Program<br />
Leadership<br />
• Full time Business Lead<br />
• Active, cross-functional Steering Committee<br />
• Effective partnership between <strong>Claims</strong> and BC & IT<br />
Focused Change<br />
Management<br />
• Thorough change plan<br />
• Usage of model office<br />
• Ownership by team managers<br />
• Careful consideration when implementing functionality to minimize field<br />
disruptions<br />
Collaborative<br />
Development<br />
Process<br />
• “Grass Roots” involvement of 100+ claims professionals<br />
• Non-claims areas engaged, not just a <strong>Claims</strong> project<br />
• Business process improvement with enabling technology<br />
• Agile delivery process<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
In collaboration with<br />
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Results are being Realized<br />
Release 1 implemented 21 weeks after <strong>Inc</strong>eption<br />
Overwhelming positive feedback from user community and<br />
stakeholders<br />
Continuous improvement with execution processes<br />
Large transformation…systems and delivery<br />
2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>.<br />
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Questions<br />
&<br />
Answers<br />
© 2012 2012 Confidential, <strong>Pegasystems</strong> <strong>Inc</strong>. <strong>Inc</strong>.<br />
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