Three Examples of Life Insurers Using Legacy Data to Accelerate Growth
September 13, 2016 by Luke Tucker
Your competitors are leveraging their legacy data. Are you?
As your organization’s digital and technology leaders, the company will be looking to you and your team for guidance and insight.
Where do you start? That’s an obvious key question when it comes to leveraging your legacy data.
Below, we review examples of how top 20 life insurers are maximizing the value of their legacy data by working with Captricity.
But first, the larger question: Why should you focus on legacy data in the first place?
Legacy data: How important is it?
The past is the best predictor of the future. No one knows your customers like you do. And we mean this in a very literal sense, because you are the only one that has access to your historical customer information.
The future of your organization can depend upon the answer to how you handle your legacy data. And not the “lip service” response, but the real answer as evidenced by budgets and time invested towards the opportunity.
The checkbook and calendar don’t lie. You prioritize and invest in what’s deemed important.
And your legacy data is very important.
Legacy data is the biggest competitive advantage life insurers have in their market landscape over the next 20 years.
The risk models you utilize can be improved, fraud trends detected earlier, customer experiences made exceptional through faster application and claims turnaround times --all enabled through the function of access to your legacy data, the analytics chops to turn it into information and the strategic foresight to know what to do with it.
Dozens of life insurers that trust Captricity as a technology advisor have done just this. Here are a few of their stories.
Three ways life insurers are maximizing the value of their legacy data
Better - Faster - Stronger: How New York Life utilizes Captricity solutions to get better data, make faster decisions, and deliver stronger underwriting
NYL has a storied 170 plus-year history. With that prestige comes terabytes of legacy information.
Unlocking data held in death certificates is one way New York Life is able to take an underutilized resource and turn it into valuable data for decision-making. Through death certificate information, they gain insight into cause of mortality more precisely and they can begin to better measure the effectiveness of their current underwriting processes.
As we stated in our white paper, “Unlocking Legacy Data”:
And that’s the goal isn’t it? To make more informed, data-driven decisions that feed into improved models and processes.
Death claims information is just one way New York Life sees value in partnering with Captricity. New York Life’s Dave Castellini, Business Intelligence Officer, talked with us in a recent interview about opportunities he sees with claims documents:
New York Life is now empowered to utilize legacy data that informs their fast track underwriting efforts. It enables them the insights to better evaluate risk in underwriting and improve the user experience.
A top life insurer discovers fraud through insights derived from death claims data
Fraud steals $80 billion a year across all lines of insurance according to the Coalition Against Insurance Fraud. That’s a conservative estimate.
What if there was a way to help inform your fraud department by flagging potentially fraudulent claims? There is, and it’s embedded in your legacy data.
A top 20 life insurer has addressed fraud head-on, armed with legacy data accessed by Captricity’s paper to digital solution.
We alluded to this story recently in our blog post on How Claims Processing Powered by Artificial Intelligence Can Save You Millions. The Company came to Captricity with 80+ years of documents. Their original budget to extract data for the analytics team was $9 million, and they wanted to complete the project in 12 months.
Within one month and for just a fraction of the cost, we provided the company with a complete data set of 80 years' worth of legacy information.
Fighting fraud is an important aspect of any life insurer’s business (not to mention state regulators).
Being armed with ALL of your organization’s proprietary customer data is the first step in ensuring you have the whole picture.
You don’t want to be sitting in meetings or strategy sessions not armed with all that data available to you, wondering exactly how many incidents are true cases of fraud, or just honest mistakes on a life insurance policy document.
Using Captricity to automate tedious and manual processes equals happy employees and happy customers
The data Captricity captured, enriched, and delivered to New York Life has had implications across their lines of business.
One such story has to do with their analytics team, which was tasked with a big project researching specific information on death claims. This was a very manual process, as they had to go through a system, type in the number and trace through in order to find the one file or one folder that contained the death certificate document.
Then the team extracted the pieces of data they needed and finally put that into their own spreadsheet.
This process was time consuming and expensive.
With Captricity, all that time and all those steps get condensed into a few simple actions with automated digital workflows. “It’s been a lifesaver,” says New York Life’s Head of Analytics, Rita Fuller.
Better data and faster turnaround times translate directly to your bottom line, and importantly to improved customer experiences as we wrote about in our recent post, “Get the Data Right and the Customer Experience Will Follow.”
Pareto’s Law applies to your risk models
Pareto’s law is commonly referred to as the 80/20 rule.
80% of your profits comes from 20% of your customers....
80% of the people do 20% of the work...
80% of the risk in your model comes from 20% of the inputs…
You probably know the answer to what your key risk identifiers are today, but how about what data you are not looking at? What are you under-utilizing, over-relying on, or even unaware of?
In short, what are the patterns you’re not seeing?
That’s the tough question that might keep you, and all other CIOs, CDOs and business analysts, awake at night staring at the ceiling.
We get it, the challenges are real
Budgets are constrained, data can be hard to access. A Capgemini report stated that some companies spending as much as three-quarters of their IT budget “just keeping the lights on.”
Every life insurer has to deal with outdated and redundant systems. The institutions that will win the market share are those that will not fail to capitalize on all of the benefits of legacy data.
Abraham Lincoln was quoted as saying, “Give me six hours to chop down a tree and I will spend the first four sharpening the axe.” Spend the time today to meet the needs of your organization of tomorrow.
Start small by focusing on the top legacy documents that will inform your business goals. For many insurers, those are death certificates, new life applications, and claims forms.
PS - Did you know IBM’s Watson supercomputer can’t read handwriting? Our CEO, Kuang Chen wrote an article on ReCode titled, “Watson claims to predict cancer, but who trained it to ‘think?’” Check it out!