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:
Agent Revenue Uplift
Distribution compensation and motivational challenges
HCLTech’ solution for a large US Auto Carrier addressed both aspects with a 3-solution combo:
- Customizing agent comp with profiling and segmenting
- Incorporation of gamification mechanics to influence selling
- Leveraging new insights from available, inhouse Data to drive improved conversion.
- 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
- 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
How we do it
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
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:
- We created a new Unstructured Intake solution to improve Submissions
- Created new insights for improved Risk Selection, Risk Assessment and Pricing
- 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
Improve STP in Life New Business
Current challenges and drivers for New business UW
- 60% of Life Insurance buyers felt policy issuance takes too much time
- Of the buyers expressing an interest in buying additional products, only half of them end up buying one
- Cost ratio in Life Insurance has been raising for the past 20 years
- 80% of customers want to use digital channels for transactions
- 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
Claims observability and Transformation
- 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
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
Claims observability and Transformation
Insurance Claims
Solutions and HCLTech solution offering eco system
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
