John Hershberger
Senior Principal, Insurance
HP Information Management Practice

Welcome, John. What were some of the stumbling blocks for the large insurers?

In 2006, many large insurance carriers initiated enterprise data strategy engagements to implement a consolidated customer view. Clients were challenged with the complexities of synchronizing data from multiple sources and sharing that data with frontline operational systems. Difficulty in detecting ‘change’ records and the complexities of linking on-line customer/prospect drives companies to make a fundamental customer data integration decision: build vs. buy. Too often, companies follow a technology-centric implementation without widespread business involvement. The key to success lies in the ability to roll out new business functionality and capabilities in a consistently phased manner to maintain program momentum and business support.

Key steps for 2007?

A successful customer data integration (CDI) program begins with a comprehensive strategic roadmap and implementation plan that addresses data architecture, technology, business and process dimensions, and organization. It is critical to have executive sponsorship for streamlined decision making around the approach. Additionally, these programs must have business consensus, IT support, and dedicated CDI-related resources.

What does a good data integration strategy look like?

CDI initiatives are large, complex programs that require a phased delivery approach. A key objective should be the linking of financial results and operational metrics to drive consistent business measurements and improve the ability to respond to regulatory needs. A ‘single-view’ insurance data model should be extensible with comprehensive household, producer, product, and claim views. Finally, the organization should be a combination of centralized support and federalization. CDI is best performed as an integrated function, while use of the data to drive business results is best left to the business.

What in your view is the one thing insurers should take away from this forum?

A process-centric approach to large data strategy efforts drives innovation. How the technology is applied and whether there is buy-in by the business side – these are two major determinants of success or failure. Single-view is ‘do-able.’ It is not, however, simple to implement and support on an ongoing basis. It requires executive sponsorship and persistence to stay the course.

Christopher G. McDaniel
Chief Operating Officer
Blue Frog Solutions

Welcome, Christopher. What were some of last year’s stumbling blocks?

The change in the regulatory environment in 2006 and the initiatives to accomplish this really slowed the adoption of some of these data standards. Firms found themselves in a situation where they were making changes to their business strategy at the same time that the regulatory environment was changing. They found it difficult to get their business processes in sync with these changes. In addition, there are several major pending regulatory items that were expected to come to bear in 2006, but instead have lingered into 2007. The anticipation of these pending regulatory requirements tends to keep the entire industry in a perpetual state of waiting.

What are the key steps for 2007?

The key steps are defining the business strategy and the key guideposts for managing the solution. Companies don’t have to have the individual answer but they need to have the guideposts. It is also important to shift from being reactive to being proactive. Rather than wait on regulations, the industry as a whole needs to get ahead of them. Only then will companies be able to control their impact.

What does a good data integration strategy look like?

Consistent, organized, and standards-based.

What is the one thing insurers should take away from this forum about providing innovative, straight-through processing?

Select their partner wisely. Look for firms that have consistently provided solutions matching those guideposts that they’ve set.