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2010 Farm Bureau Operations Conference KFB PolicyCenter PowerPoint Presentation
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2010 Farm Bureau Operations Conference KFB PolicyCenter
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  1. 2010 Farm Bureau Operations Conference KFB PolicyCenter Kristen Mellinger, Director, Underwriting Services Kathy Grider, Manager, Policy Services

  2. Agenda • The Journey Begins . . . • . . . And Really Gets Started! • Our Results! • Release 1 Components • System Preview • Agency Rollout • Conversion • Training for Agency Offices • Communications • Agency Office Support • Communication to Members • Key Benefits • Lessons Learned • Employee Morale • Questions

  3. TheJourney Begins . . . • In 2005 we made the decision to start the search for a Policy Administration System (PAS) • Conducted RFI Process • CSC • FiServ • Guidewire • IDP • Sapiens • SunGard • Selected Guidewire’s PolicyCenter Product • Previously decided on their ClaimCenter product • Opportunity to “define” the tool as they built it • Offered us the agility we were looking for

  4. . . . And Really Gets Started! • In 2006 we started program mobilization and went through normal project phases: • Scope/Schedule Definition • Business Requirements • Programming • Testing (including User Acceptance Testing) • Pilot • Training/Communication • Roll-out • Support

  5. Our Results! KFB PolicyCenter • New way of doing business • Manages all policy lifecycles – new business, policy changes, reinstatements, etc. • Integrated with key systems – ClaimsCenter, ARMS, Cash Receipts, Account Bill, etc. • Started with Personal Auto • Future releases will include other lines

  6. Release 1 Components • Multi-unit Auto (MUA) • Pre-fill • Predictive Model • Billing and Payment Options

  7. Multi-Unit Auto Characteristics Units Drivers • 1 Membership • 1 Agent/Agency • 1 Company (Mutual) • 1 Contract/Package Type (Personal) • 1 Bill • 1 Billing Plan (i.e., Account Bill, 3-Month Installments) • Named Insured(s) • 1 Mailing Address • UM / UIM / APIP • Personal Liability Limits (i.e., BI, PD, Med Payments) • Select Discount(s) (i.e., property) • Policy Tier (driven by Predictive Model) • Inception, Effective & Expiration Dates • Comments • Renewals, Cancellations and Non-Renewals Membership Policy 2 Policy 1 Policy • Coverage Limits (OTC, Collision) • Deductibles • Vehicle Discounts (Anti-theft, ABS) • Driver Assignments (multiple drivers per unit) • Location and Tax • Additional Interests (i.e., lienholder) • Other Endorsements (i.e., misc equip, loan lease) • Unit Risk Score & Tier (driven by Pred Model) • Unit Inception Date Unit Unit • Discounts (i.e., good student, safe driver) • At-Fault Accidents • Violations Driver

  8. Pre-fill • Populate data based on business rules or existing policy/member information • Vehicles registered to the household • Tax information • CLUE, MVR and Insurance Score information • Increased efficiency of data entry by decreasing the number of manual errors and invalid data

  9. Predictive Model • Tool developed to aid in risk assessment and complements the agent knowledge of customer • KFB’s auto book of business was used in the analysis and development • Reduces the number of questions asked during different policy lifecycles • Uses objective data elements that are accurate and easily kept updated over time • Reunderwriting occurs automatically as appropriate • Made up of 11 elements such as Insurance Score, At-Fault Accidents, etc.

  10. Billing and Payment Options • Surveyed a group of Agency Managers from across the state to ask them what features were most important • Multiple payment options • Consistent due date • Consistent amounts due

  11. Billing and Payment Options Flexible Payment Options • Full Pay • Installment Pay • 1 month (Account Bill or Policy Bill) • 2 month • 3 month

  12. Agenda • The Journey Begins . . . • . . . And Really Gets Started! • Our Results! • Release 1 Components • System Preview • Agency Rollout • Conversion • Training for Agency Offices • Communications • Agency Office Support • Communication to Members • Key Benefits • Lessons Learned • Employee Morale • Questions

  13. System Preview

  14. System Preview

  15. Agency Rollout • Pilot • Initial county office – July 2009 - October 2009 • Continuation in two other counties (4 offices) in October • Phased Implementation • November – 3 counties • December – 0 • January – 6 counties • February – 18 counties • March – 15 counties (Jefferson County has 18 offices) • April – 21 counties • May – 16 counties • June – 20 counties • July – 16 counties • Approximately 175 offices implemented on the new system from July 2009 – July 2010

  16. Conversion • We had approximately 713,000 single-unit auto policies to move to the new system • Estimated the result would be 375,000 MUA policies • Guiding Principles • Minimize disruption • Minimize touch-points • Mitigate impact to premium • Employ a time-boxed conversion approach

  17. Conversion • Approach • “On Demand” conversion • Using pre-fill so less data to key • Mitigating premium impacts by converting as close to old premium unless risk has changed and then over time migrate to new rate structure • State Office staff are doing conversions for members with one personal auto in their account

  18. Agenda • The Journey Begins . . . • . . . And Really Gets Started! • Our Results! • Release 1 Components • System Preview • Agency Rollout • Conversion • Training for Agency Offices • Communications • Agency Office Support • Communication to Members • Key Benefits • Lessons Learned • Employee Morale • Questions

  19. Training for Agency Offices • Announcement and registration sent 5-6 weeks prior to “go-live” date • Two training dates offered to each agency • Classes held throughout the state • Take-home training materials provided • “Test System” available for practice use after attending training

  20. Training for Agency Offices • Phase 1 – Computer Based Training (CBT) • Provides overview material: MUA, pre-fill, predictive modeling, billing changes, etc. • Complete CBTs before classroom training • Phase 2 – Instructor-led Training • Interactive, two-and-a-half-day classroom experience • Day 1 – all major transactions: new business, policy change, general inquiry, etc. • Day 2 – builds upon basics from day 1 plus covers: cancellation, reinstatement, renewals, etc. • Day 3 – conversion • CE credits given

  21. Communications • Monthly newsletters • Highlighted program’s progress • Provided additional information on critical topics such as Billing, Predictive Modeling, Conversion, etc. • Created email address for program-specific questions, concerns, suggestions

  22. Agency Office Support • Business team member present at each agency for first 2 days of implementation • Provided assistance to staff while working in the new system • 1-800 Call Center available during office hours for questions • Call Center staffed with business team members who were experienced in the system

  23. Agency Office Support • Billing Handouts • − Highlights major changes to the bill Front  Back

  24. Agency Office Support • Poster/Windows Clings • − Display in agency to notify customer about MUA and flexible payment options

  25. Agency Office Support • Desk Tents • − Frames with 3 images to be displayed on desk or counter

  26. Agency Office Support • Agency Talking Points • − FAQs and responses to help staff explain changes impacting the customers • Internet Message • −Could display on agency page - about MUA and the billing changes • 1-800 Card • −Business card that has the support line phone number

  27. Communications to Our Members • Declaration Insert • −Included with customer’s New Business Declaration and explains document formatting changes

  28. Communications to Our Members • Billing Insert • −Included when customer receives first bill. Explains document formatting and process changes.

  29. Communications to Our Members • Billing Reminder Postcard • −Timed to be sent to customer after his first bill goes out • −One-time reminder that the billing process has changed

  30. Agenda • The Journey Begins . . . • . . . And Really Gets Started! • Our Results! • Release 1 Components • System Preview • Agency Rollout • Conversion • Training for Agency Offices • Communications • Agency Office Support • Communication to Members • Key Benefits • Lessons Learned • Employee Morale • Questions

  31. Key Benefits Consumer Report Ordering (MVR, CLUE, etc.) DocumentationCosts

  32. Key Benefits Reinsurance Costs Transaction Time

  33. Key Benefits Add Vehicle Transaction New Business Underwriting Referrals

  34. Lessons Learned • Minimize rating impact to customer • Gradually increase/decrease premiums to move to new rate structure • Cannot compare new rating structure and rates to old rating structure and rates • Difficult to explain to customers • Users need to proceed slowly until they get more comfortable with the system • Going too fast and making mistakes

  35. Lessons Learned • We rolled out knowing the system was not perfect • Allowed us to implement sooner • Importance of communication • Opportunity to make enhancements based on feedback • Defect review/resolution was a daily activity • Very positive feedback on payment options • Customers liked the ability to choose • Involvement/input from Agency Managers • Created buy-in • Shared message with counterparts across state • Prevented us from making some wrong decisions

  36. Employee Morale • PAS Program Related • We worked A LOT of hours, but had fun and celebrated our successes • Quarterly Meetings • Update on progress and accomplishments • Recognition and awards to individuals and teams • Fun – food, games, etc. • Off-site activities • “Dawn at the Downs” (Churchill Downs racetrack) • Bowling event • “Unofficial” Happy Hour • Individual team lunches, dinners, etc.

  37. Employee Morale • KFB Company Related • Off-site company activities • Company meeting that reviewed where we’ve been and where we are going. Had fun giveaways for employees. • Annual events • Derby lunch • Thanksgiving luncheon • Employee appreciation (day at the zoo, Six Flags amusement park, etc.) • Annual company Christmas gift to all employees • Individual department “fun” • Quarterly meeting • Information sharing • Recognition (length of service, education) and awards • Fun (announcements of new babies, weddings, retirements, etc.) • Lunches • Christmas celebrations • Product & Risk Management “fun” • Chili Cook-off • Unfailing Teammate award • Recognition and saying thanks (especially related to PAS)

  38. Questions