HCL At ITC Vegas 2022 | HCLTech

HCLTech Insurance Solutions

Customer expectations around personalized experiences scaled new heights during COVID. While larger carriers continued reducing tech debt and enabling new business models, insurance startups with no legacy baggage pushed the envelope on novel products and experiences.

HCLTech - with its rich partner ecosystem across ‘big & small software’ and hyperscaler relationships - helped carriers on either end of that spectrum. Via our ‘Novus’ offering, clients weighed vended v. bespoke options for their unique business and IT environments, and deployed faster by leveraging our global scale.

HCLTech’s Insurance experience spans Legacy Modernization, Infrastructure Support, Cloud Migration /Journey management, Data Transformation and much more.

The HCLTech team visiting ITC will comprise SMEs from across Distribution, Claims, PAS, Underwriting, Analytics and more. Alongside us will be some of our Insurtech partners - and together we’ll be happy to share our journey experiences. HCLTech will be showcasing 4 offerings that have generated significant interest in the last 6-9 months:

Distribution compensation and motivational challenges

people

HCLTech’ solution for a large US Auto Carrier addressed both aspects with a 3-solution combo:

  1. Customizing agent comp with profiling and segmenting
  2. Incorporation of gamification mechanics to influence selling
  3. Leveraging new insights from available, inhouse Data to drive improved conversion.
Process:
  • cost and effort required in developing and implementing new incentive strategies
  • Setting commission guidelines based on various corporate policies and considerations
  • Commission definitions based on multiple LOBs and agency hierarchies
  • Computing mistakes that cause agents displeasure and distrust
People:
  • Motivating everyone in the office to produce new business on a consistent basis i.e. weekly, monthly, by LoB
  • Motivating everyone in the office to reach out to customers who are most likely to lapse for nonpayment of premium
  • Motivate office to prospected clients with the highest propensity to convert

The framework uses existing data to deliver a solution in two phases: Phase 1 leverages Data Science to collate customer and distribution data to generate profiles and segments, and create novel insights Phase 2 leverages Agency Gamification from HCLTech’s partners to target appropriate compensation/incentivization mechanisms based on the generated segments to impact the outcome

Data Driven Motivational Framework

Data Driven Motivational Framework

Machine Learning Framework

Machine Learning Framework
Data Driven Motivational Framework
Machine Learning Framework
Commercial Underwriting

HCLTech’s solution for a US Specialty Commercial carrier involved a hybrid of partner solutions with bespoke builds:

  1. We created a new Unstructured Intake solution to improve Submissions
  2. Created new insights for improved Risk Selection, Risk Assessment and Pricing
  3. Improved Process orchestration, rules and workflows for improved turn around time as well as costs

Cost Efficiencies and Expense focus

  • 28% of Net Premiums as Expenses including Commissions
  • 14.1% of Net Premiums Administrative and General Expenses

Improved Risk Selection

~15% of submissions convert to Policies consuming ~34% of UW bandwidth

Distributor Experience

Significant churn and manual processes between distribution and UW teams

Data and Insights

Best Efforts basis for Pricing optimization due to limited use of historical data

What we do

Intake

  • Unstructured Intake
  • Orchestration with Core and Surround Systems

Risk Data

  • Enterprise and Third-party data - Information Gathering

Insights

  • Conversion Propensity
  • Loss Estimation

UW Process

  • Agent Workspace and Correspondence
  • Process Simplification
  • Change Consolidation
  • Policy Checks

Pricing

  • Underwriting Assist – “What-If” Scenarios
  • Personalization and bundling
How we do it

Oppurtunity Areas

  • Unstructured Intake
  • Manual Policy Checks
  • Distributed Data – Enterprise and third party
  • Submission profiling
  • Manual assignments and coordination during risk assessment and Underwriting
  • Emails and sub optimal document management
  • Enterprise data And insights

Solutions

  • AI/ML based Intake solution for Unstructured as well as Handwritten documents and Policy Checks
  • Third Party Data sources and Insights via Insurtech Partners
  • Distributed Data – Enterprise and third party
  • Conversion Propensity for submissions using Historical data
  • Digital Correspondence and Accelerated Underwriting solutions
  • UW Assist and Analytics driven Rating/UW solutions

HCLTech’s software partners for Commercial/Specialty solutions

Current challenges and drivers for New business UW

  1. 60% of Life Insurance buyers felt policy issuance takes too much time
  2. Of the buyers expressing an interest in buying additional products, only half of them end up buying one
  3. Cost ratio in Life Insurance has been raising for the past 20 years
  4. 80% of customers want to use digital channels for transactions
  5. Less than 15% of the policies are issued in an STP
What we do

Product Rules/BPM/Workflow

  • Externalized Product rules
  • APIfication of Product rules, Quotes and Premium calculations
  • Intelligent automation
  • No code/ Low Code workflow solutions

Application Intake

  • Quick Quote, Illustrations
  • Electronic Apps
  • OCR for paper intake

Risk data capture

  • 3rd party integrations MVR, OFAC, Credit
  • Social Media Analytics
  • Wearables

Requirement Management

  • Physician Statements
  • Lab/blood work
  • Electronic Health records

UW Process

  • Underwriting Rule engine
  • Underwriting as a Service
  • Decision support service
  • Continuous Underwriting

Policy delivery

  • Product Personalization and bundling
  • E-payments
  • E-Signature
  • E-Delivery
  • Underwriting Assist - "Whatif" Scenarios
How we do it
  • Given the combination of multitude of data sources, some manual and automated processes across multiple applications, there is a potential for quick fixes which may not provide a significant ROI in terms of cost or strategic business value – resulting in a need to create visibility and insights into the claims processes.
  • Once the process mining is done, unstructured intake, orchestration, insights and automation can be implemented depending on the ROI for each of the process/sub processes in the overall claims flow
Claims observability

Intake

  • Unstructured Intake
  • Orchestration with Core and Surroud Systems

Loss Information

  • Enterprise and Third-party data - Information Gathering

Insights

  • Claim profile
  • Claim reserves

Claim Proces

  • Automated Damage Assessments
  • Digital FNOL and Portals
  • Claims Process orchestration to enable No Touch, low touch
  • Cross Sell/Up Sell
  • Surroud Service

Fraud

  • AI/ML Fraud Solutions
  • Outlier detection

Insurance Claims

Solutions and HCLTech solution offering eco system

Insurance Claims

Oppurtunity Areas

  • Unstructured Intake
  • Manual Policy Checks
  • Distributed Data – Enterprise and third party
  • Submission profiling
  • Manual assignments and coordination during risk assessment and Underwriting
  • Emails and sub optimal document management
  • Enterprise data And insights

Solutions

  • AI/ML based Intake solution for Unstructured as well as Handwritten documents and Policy Checks
  • Third Party Data sources and Insights via Insurtech Partners
  • Distributed Data – Enterprise and third party
  • Conversion Propensity for submissions using Historical data
  • Digital Correspondence and Accelerated Underwriting solutions
  • UW Assist and Analytics driven Rating/UW solutions

HCLTech’s software partners for Commercial/Specialty solutions

Our Insurance team at ITC Vegas

Gautam Kalra
Gautam Kalra
Vice President, Financial Services, HCLTech
Rangarajan Srinivasan
Rangarajan Srinivasan
Head of Insurance Solutions, HCLTech
Ian Philips
Ian Philips
Business Development, HCLTech
Ashu Govil
Ashu Govil
Insurance Portfolio Lead, HCLTech
Sateesh Jois
Sateesh Jois
Insurance Portfolio Lead, HCLTech
David Jefferson
David Jefferson
FS Practice Director, HCLTech
Rajneesh Sehgal
Rajneesh Sehgal
Associate Director, HCLTech