A recent article, “Transforming into an analytics-driven carrier“, examines best practices in what is a multi-stage journey that requires equal parts business and analytics leadership. The end goal is an organization where:
- Data-driven decision making is the standard
- Analytics is central to claims adjustment, underwriting, and pricing processes
- Analytics drive the entire business, functions are better integrated, and organizational silos no longer exist
The transformation is also dependent on having the right technology in place in order to begin to get buy-in and build momentum as a strategic vision for the organization is implemented. As a McKinsey Quarterly article puts it, companies must begin to build a foundation which enables change. “People have been talking about data-driven cultures for a long time, but what it takes to create one is changing as a result of the new tools available. Companies have a wider set of options to spur analytics engagement among critical employees.” For carriers still looking to move off of core legacy systems that struggle with modern requirements, even starting down the path to becoming an analytics-based insurer may seem out of reach.
With configurable data tools for consolidating data from legacy systems and other sources, along with embedded analytics that allow for the incorporation of data into day-to-day processes, Origami Risk stands ready to help you begin.
Starting with the data you already have
As advice to carriers who have yet to take a fully in-depth look at the impacts data analytics might have on customer experience, operational processes, and business models, Upendra Belhe, Gen Re’s P&C Chief Data and Analytics Officer, urges carriers to take full advantage of the data they have.
“For insurers who sat out or postponed the exercise due to resource constraints or their perception of inadequate data, the questions are very different. Have you explored ways to benefit from the data you already have?”
Those who have yet to do so are not alone. “Transforming into an analytics-driven carrier” points out that many insurers find it difficult to mine their internal data, which is often “disaggregated, unstructured, and generally underutilized”.
Origami Risk offers an array of data tools that consolidate data from disparate data sources into a single system, where it can be used to provide valuable insights and augment decision making.
More than simply harnessing the power of your historical data, Origami Risk also provides the ability to leverage your data in conjunction with external sources. The Origami Risk data import center is a powerful tool for converting data from legacy claims administration, underwriting, policy administration, and billing systems. System conversions are supported by a team of data transformation experts, each of whom has years of experience working closely with clients to analyze, map, and load data for which—as the authors of “Transforming into an analytics-driven carrier” put it—“substantial effort is required to bring the data into working condition.”
In addition to providing users with the ability to load data from spreadsheets (for example, loss run, policy, and premium history) directly into the system, Origami Risk integrates with virtually any third-party vendor software application to allow for secure, scheduled data collection.
Beginning to generate insights and lay a foundation
Having access to your data is one thing, but the real power of analytics comes from adoption by users. Another article, “Making data analytics work for you–instead of the other way around” holds that “companies must embed analytics in the operating models of real-world processes and day-to-day workflows.”
A number of intuitive, outside-the-box analytics tools are available in Origami Risk that can serve as a useful starting point for integrating analytics into front-line processes. Together, these share the goal of improving operational efficiency, lowering costs, reducing risk exposure, and increase customer satisfaction.
For example, by leveraging both internal and external claims data, the following analytics tools provide claims managers and adjusters access to insights that can be used to make informed decisions.
Embedded in claims screens for ease of access, the Claims Comparison Report pulls data elements from a claim that an adjuster is viewing, compares it to similar claims in the system, and displays the results on a scatter chart. The chart also shows the claim and related claims with a standard deviation, above and below. This actionable information can be used to help an adjuster make decisions based on analytical thinking, reducing the likelihood of error, and mitigating the influences of subjective biases.
The Origami Risk ODG Integration helps forecast problematic claims and identify the appropriate actions to reduce losses. This provides workers’ compensation claims adjusters with in-system access to risk severity scoring based on an aggregation of over 10 million lost-time cases. Using diagnosis codes and demographic information such as claimant age, jurisdiction, and job class, claims in Origami Risk are benchmarked against similar claims in the ODG data. Calculations take into account factors (smoking, obesity, diabetes, and legal representation) that can negatively impact disability duration and result in additional costs. Based on matches found, ODG’s proprietary modeling provides an immediate analysis of the relative levels of risk for claims.
Taking the next steps in the journey
In subsequent stages of the transformation into an analytics-based carrier where additional data needs are identified, Origami Risk’s scalable, cloud-based platform allows for additional data storage from internal and external sources. And as the use of analytics is expanded across business units and functions, features and workflows used by both staff and customers can be tailored to ensure that analytics are fully incorporated.