Insurance use case: Processing files from coverholders

Industry: Insurance
Specialisation: Managed General Agent (MGA)
Key Stakeholders:

  • Coverholders – Partners of the MGA with delegated authority to provide insurance to customers
  • Underwriters – MGA Underwriters who provide products under the delegated authority arrangement
  • Claims – MGA Claims handlers who handle incoming claims
  • Operations team – MGA operational support team who facilitate the processing of incoming files from coverholders into internal systems for use by Underwriting and Claims teams.

The Situation

Using the delegated authority agreement the coverholder can complete business on behalf of the MGA. These transactions include risk, premium and claims transactions. These transactions are then shared by the coverholder on a monthly basis back to the MGA who uses this data to track all risks underwritten, premiums received and claims to be processed.

The process of sharing of files is underpinned by a key activity completed by the operations team which is to validate, map and upload the core transactions to internal systems of the MGA.

This activity has to be completed under the following conditions:

  • Systems vary by coverholder and this will not change
  • Coverholders are adverse to installing software to support the sharing process
  • Requesting Coverholders to complete additional work or update their processes in line with the MGA’s process requirements is generally not an option
  • The need for clean data is critical to the business
  • A short time window exists for processing of this data

The Challenge

  • Multiple file formats – The files received from coverholders are in different formats due to the varied systems in use by coverholders
  • Mapping challenges – This variation in systems means field names can be different making accurate mapping a challenge
  • Missing data – Key mandatory data to support a transaction maybe missing or incomplete
  • Data Validation – Categories and specific classifications may be named differently across systems and need to be mapped correctly
  • Calculations – Coverholders systems may calculate values using different rules which may need additional calculations to align to MGA systems

The Business impact

  • Additional manual activities are required on a per file basis directly impacting file processing time.
  • Additional calls and interactions with partners to try and resolve key data quality issues are required
  • The addition of manual activities in data handling leads to a poor audit trail on data changes applied making investigation of errors at a later stage difficult to resolve
  • Data quality and consistency requirements can be difficult to meet
  • Due to the additional activities surrounding data processing system update and information deadlines may be missed
  • Impacts to downstream systems accuracy and business performance result
  • This can lead to an additional impact meeting compliance requirements around security and governance of data

The Solution

The TES Data platform provides the operations team with the tools needed to process incoming files faster.  The team can easily share these tools with partners without the necessity of changing their systems, installing software, redesigning their processes or undertaking additional complex activities. This results in a streamlined process for managing files from multiple stakeholders redefining the data relationship with coverholders.

The Results

  • 10x faster file processing – Our work with clients has demonstrated a 10x improvement in file processing
  • Easy to configure – Simplifying the process for working with existing and on-boarding new coverholders
  • Full audit trail on all changes to data ensuring alignment with data security and governance requirements
  • Faster data issue resolution due to full logging of all changes and interactions with data
  • Setup and deployment within days
  • Limited impact to curren business processes
  • Increased capacity to process files and manage coverholder relationships