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The insurance industry is based on effective risk
analysis. While the basic premise is quite
straightforward - an insurance company accepts the risk
of a loss in exchange for a premium - the business
realities are not.
Risk-based Visibility
Insurance companies require complete risk-based
visibility into their business. At the enterprise level,
you need to analyze your policy portfolio as a whole to
ensure company solvency with a high level of confidence.
For greater detail and understanding, you must also drill
into their portfolio to analyze the performance of
particular policy types, customer groups, geographies,
etc. Using sophisticated risk analysis methods, you need
to identify your most important risks and opportunities to
know where to focus your attention and how to make the
best decisions.
Solutions
The Vanguard System™ is a comprehensive business
solution for improving the quality, reliability, and
speed of management decisions. It does this by helping
you Collaborate with colleagues
on important plans, Analyze alternatives
using state-of-the-art modeling and simulation
techniques, Automate routine
decisions using expert system technology, and Improve
overall management effectiveness by adding
structure to a normally chaotic process.
Business improvement is all about working smarter.
Vanguard brings together the people, analytics, and
systems required to help your business operate
intelligently.
Here are just a few of the ways Vanguard supports the
insurance industry:
- Risk analysis: Fully quantify
your risks at any business level, from the
corporate enterprise down to individual
components of your policy portfolio, using
sophisticated modeling and simulation techniques.
- Forecasting: Predict claim
frequencies and payout amounts with our
comprehensive forecasting analytics.
- Mix / Portfolio analysis:
Optimize policy portfolios, premium pricings, and
promotions.
- Operational efficiency: Conduct
process improvement/Six Sigma projects to reduce
costs, cycle times, and waste.
- Knowledge automation: Expertly
guide employees through complex processes, such
as claims reviews or compliance audits, using
intuitive question-and-answer sessions. Reduce
administration costs while improving reliability.
Content Management System (CMS)
Vanguard Content Management System (CMS) is a Web-based expert system development tool for non-programmers. CMS Web-based applications guide customers or employees through complex decision-making processes using interactive, automated question and answer sessions. They are core software applications that can improve the operational efficiency of your key business processes.
CMS can help insurance company sales with insurance plan selectors that potential subscribers can use to find the right plan for their needs.
Insurance customer support specialists can walk through CMS support scripting applications to enforce consistency in communication and assist them in deciding which questions to ask customers.
Insurance company operations can be improved with CMS applications that adjustors can use to ensure that they follow the correct company procedures and claims processes.
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Case Study
Johnson-Wright uses Vanguard to help insurance
companies better manage hazardous waste cleanup
claims.
Case Study
Challenge
Johnson-Wright, an environmental consulting
firm, works with insurance companies in hazardous
waste clean up settlement negotiations. They need
to reduce complex $50+ million, 30-year cleanup
operations to fair, lump-sum settlements. A key
issue to address is the fact that the actual
clean-up activities are not known at the time of
a settlement.
Solution
Johnson-Wright uses Vanguard to build detailed
net present value (NPV) models of the total clean
up cost over the life of a project. The models
use Monte Carlo simulation to incorporate
uncertainty assumptions about which project tasks
will occur and their durations and costs. The
models are also combined into a massive,
insurance company-wide liability planning tool.
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Case Study
US Specialty Underwriters uses Vanguard to
more efficiently and reliably review policy
applications and perform insurance premium
calculations.
Case Study
Challenge
US Specialty Underwriters (USSU) is a provider
of underwriting services to self-insured
workers’ compensation clients. They follow a
detailed policy application review process with
complex methods for calculating insurance
premiums. Of critical importance, they had a single
expert with complete knowledge of the
process.
Solution
The Vanguard Professional Services Group built
a custom Vanguard solution for USSU. Based on
business rules and pricing analytics, the
Web-based expert system reduces the application
review and premium pricing process to an
interactive question-and-answer session.
USSU was able to successfully capture their
expert knowledge and extend their review and
pricing capabilities to junior underwriters and
staff. They have converted nearly all of their
applications from paper to electronic reviews.
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