03 Antonio Derossi

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ICTI ConferenceBrijuni

1820 October 2007

Technology Innovation as a

Competitive Weapon forClaims Management


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Growth is not enough - GBMM - 011106 - JT 9am

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Agenda

New frontiers in claims technology

Divide and conquer


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The sources of claims innovation

Fresh ideas (yet to become enablers)

Wireless claims applications

Accident reconstruction technology

Litigation management environment

Advanced disease management

Remote assessments

Voice biometric technologies

Predictive modeling

Convergence of

TLC, internet, TV

Increasing dataflows and directorysearches

Communitymanagement tools

Increasingcomputing power

Trends


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Wireless applications: enhance information gathering and

interaction with customers

Wireless devicescan support real-time claimssubmittal,assessment,negotiation, and

payment

Opportunity for adjusters

and customers

Impact

Higher customersatisfaction and

involvement

Faster claims

handling process Higher productivity

of assessors andadjustors


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Accident reconstruction technology: improve claims

dynamics understanding

Impact

400.000 newcustomers in 12months in Italy

Average cost ofclaims 5%

Frequency -15%

Easy to install clearbox chip installedon the car able totrack and send to acentral unit howmany km aredriven, when,where and how fast

Claims business opportunity

Attract with proper discount goodcustomer segments with lower

claims frequency Accident reconstruction algorithms Black box available for litigation

management


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Claims animation solutions: improve understanding of

complex claims and backup technical decisions

Recreate car crasheffects, providingvisual re-tracing ofimpact points, andidentify / confirm

possible injuriesresulting fromdifferent types ofcrashes

Claims business opportunity Impact

Demystify crashdata, soft tissuedamages and

resulting claimexpenses

Support litigation

Accuracy ofreserves


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Advanced disease management: improves customer well

being and reduces case cost

Remoteintensive care unithelps identify

chronic conditionsearly and referpatients to

comprehensiveprograms toimprove theirhealth and wellbeing


Data search engines and predictivemodeling

Web community for

- 24/7 monitoring- Counseling on demand- Education

Alert on-site staff Exchange data with hospitals Drug story tracking

Impact after one year

Cardiopulmonary

arrests < 50%

Mortality of patientadmitted to program< 16%

Patient discharged

by hospitals > 22%

~ 20 lives saved


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Litigation management solutions: improve workflow of

arbitrations and legal activities

Impact

Reduction in cost of

interaction

Improved workflowof legal activities

Improved customerservice

An electronicworkspacesupportinginteraction andcommunication ofclaims handlers,assessors andlawyers


Real-time collaboration Analysis of legal process and

impact of decision options Skill-based routing for trial

assignment Decision support tool Automated invoicing and reporting


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Tele-claims technologies: enabling on-line remote

assessments

Impact

Most motor claimssettled in


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Voice biometric technology: supports advanced

fraud detection

Analyze and

measure

physical andbehavioralcharacteristicsof individuals


Rank claimant reliability based on Analysis of emotional state Analysis of narrative integrity Cognitive interviewing/double checks

Pushes genuinecustomers onto fast track

Reduces throughputtime and claimshandling costs

Lower leakage risk Improved service

Triggers investigation ofhigh risk calls

Impact

Better leakage control Better focus of

investigators andassessors


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Agenda

New frontiers in claims technology

Divide and conquer


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96

4

100

2005

Innovation projects

Regulatory compliance,infrastructure improvement,legacy maintenanceapplication evolution

IT investment budget (capex), percent

IT will tend to

focus too muchon costs and

businesscontinuity

The typical IT project portfolio has too little focus

on innovation


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It is imperative to understand how IT adds value

Business performance

improvement

Necessary to beatcompetition by improvingproduct, services, andperformance

New market positioning

One step ahead ofcompetitors

Turning IT into acompetitive weapon,innovating markets andservices or changing thevalue chain

Win the race

IT as business enabler

Change the rules

IT as innovation tool

Get pole position

IT as a commodity

Value Low cost, protect

revenues, limitoperational failure orregulatory liabilities

Necessary to dobusiness


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The three-part approach is very applicable in claims

Change the rules

IT as innovation tool

Win the race

IT as business enablers

Get pole position

IT as a commodity

Infrastructure mgmt Core legacy platforms

Accounting and back-office activities

Document and datamanagement

Application development

technologies

Seamless channelintegration (e.g., first

notification) On-line platform Integration with third

parties

eCFR and

performance mgmt Sophisticatedassessment tools

Teleclaims

Data search engines Voice biometric

Wireless claims Accident reconstruction Predictive analysis

tools

Virtual interactions and

negotiations


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Push IT managers to adopt a three-part budget model and

manage each part separately

100

Total ITbudget

60-70

IT as acommodity

20-25

IT asenabler

5-10

IT asinnovation

tool

Total budget

Index

Infrastructure Applications business users

are satisfied about Mandatory initiatives

Applications businessusers are not satisfied

New applications

Applications notconceived bybusiness users


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Claims executives role varies across the three parts

IT as a

commodity

IT as enabler

Businessleaders role KPI to be tracked Goals

Smart buyer Cost drivers Technology complexity Platform flexibility

Quality servicesat low cost

Managing

partner

Organisationalperformance

Times Quality

Continuous

performanceimprovement

IT asinnovationtool

Talent scout No. of ideas Brand recognitionBuild competitiveadvantage

Documents

03 Antonio Derossi