The Illinois based multiline insurer that provides a complete portfolio of personal and commercial insurance, including a full spectrum of P&C, health and life offerings. The insurer has over the past 9 decades grown to serve policyholders in 21 states with combined assets of $2 billion, more than 800 employees, 1,500 agencies, and 8,500 independent agents.
Recognizing the Challenges
For insurers offering workers compensation insurance, mandated statistical data reporting can pose significant cost overheads and regulatory compliance risks. Carriers must file stat reports with the corresponding bureau on a monthly basis and late or inaccurate filings can lead to multi-million dollar penalties.
The carrier is required to file statistical reports with the National Council on Compensation Insurance (NCCI) and the Wisconsin Compensation Rating Bureau (WCRB). These reports have strict deadlines and it’s imperative for these reports to be filed accurately and on time.
Beyond potential fines, extracting transaction data from core systems and reformatting it into the necessary bureau data feeds was a perennial challenge. Due to various data processing insufficiencies, the insurer had dedicated substantial human resources to manually reviewing and correcting data feeds prior to submission.
Adopting a Solution
The insurer was undergoing significant digital transformations across its landscape, and required a workers’ comp data feed solution that could also be integrated with its new systems.
The process began with ValueMomentum applying its deep knowledge of the insurance industry and statutory reporting requirements to evaluating existing processes. These investigations determined the various types of data extraction and translation challenges.
After achieving a complete understanding of the current state, ValueMomentum collaborated closely with insurer’s business users to develop a plan for an end-to-end in-house process for automating statistical reporting.
Using the modern architectures and methodologies, ValueMomentum engineered a solution to streamline and automate the processes for information extraction, data transformation and data feed creation to meet NCCI and the WCRB specifications. This included tools such as Microsoft SQL Server, Microsoft SQL Server Integration Services (SSIS), IBM Rational, Microsoft Visual Studio and Atlassian Jira.
Realizing the Benefits
Now, instead of producing data feeds within the same week of the submission deadline, the new solution takes only about 30 minutes to automatically generates feeds 15-20 days before the NCCI and WCRB due dates. In addition to providing plenty of time to review the feeds prior to submission, data quality is vastly improved. In the past, it required four to five days for verifying and correcting data within the feeds and today, it takes less than one.
What’s more, the new solution also provides a subsequent reporting data feed the bureaus also require but the previous system was unable to supply. The new subsequent reporting feed frees the claims department from the tedious task of manually completing the required subsequent reports forms, saving nearly a full day of a claims staffer’s time.
As the new system enables commercial lines raters, actuaries and claims staff to refocus from tedious data support chores to higher-value business-critical tasks, the insurer expects net savings of over $100,000.
They eliminated significant risk while gaining a fully automated process that will seamlessly integrate with our other modernized systems as they go live.