LEADING AUTO INSURANCE COMPANY: XTIVIA MASTER DATA MANAGEMENT

ORGANIZATION

The client is a leading property and casualty insurance provider specializing in auto insurance programs. Their primary focus is on personal automobile insurance, with non-standard auto policies comprising over 90% of their premiums. The client offers standard and preferred personal auto insurance, monoline commercial auto insurance, and classic collector automobile insurance.

With a presence in 44 states and a network of over 12,000 independent agents, the client has established a significant footprint in the auto insurance market.

BUSINESS CHALLENGE

Our client is the second-largest provider of non-standard automobile insurance in the nation, issuing between 2,000 to 5,000 policies daily. More than 95 percent of these policies are agent-written.

However, the existing process for new business quote requests lacked integration with current and historical customer data. As a result, the client faced the following challenges:

• Rewriting policies for high-risk returning customers, increasing costs.
• Losing opportunities with low-risk returning customers, reducing profits.

The client engaged XTIVIA to address these challenges and achieve the following business goals:

1. Reduce Losses:
   • Identify and flag high-risk returning customers.
   • Detect non-paying returning customers to mitigate financial risks.
2. Increase Margins:
   • Target low-risk returning customers with tailored policies.
3. Enhance Customer Retention:
   • Recognize current customers actively shopping for policies and retain them.
4. Optimize Marketing Effectiveness:
   • Deliver the right offers to the right audience at the right time to boost conversion rates.
5. Enable Advanced Analytics:
   • Build a 360-degree customer view to analyze trends and perform predictive analytics for informed decision-making.

PROJECT CHALLENGE

The client’s policyholder information was dispersed across multiple legacy systems, creating significant challenges:

1. Lack of Real-Time Data:
   • The centralized data repository, the Enterprise Data Warehouse (EDW), did not provide real-time updates or a complete 360-degree view of policyholders.
2. Data Duplication and Quality Issues:
   • Redundant data across systems led to inconsistencies and unreliable policyholder information.
3. Complex Matching Rules:
   • The intricate customer-matching and merging rules made it challenging to reconcile requesting customer information with data in the legacy systems.
4. Limited Visibility in Policy Rating:
   • The new Policy Rating Engine lacked access to historical and real-time data, preventing it from leveraging a 360-degree policyholder view.
   • The business issued new policy quotes to high-risk and non-paying returning customers without visibility into their history.
5. Loss of Low-Risk Customers:
   • When third-party raters requested quotes, the engine failed to identify low-risk returning customers shopping for policies, resulting in not retaining valuable customers.

Root Challenges:

• Poor Data Quality: Inconsistent and redundant data across systems.
  
• Complex Match and Merge Rules: Difficulty in identifying customers with confidence.
  
• Lack of Real-Time Customer Identification: Inability to flag high-risk policyholders in real-time during third-party rating exchanges.
  
• Fragmented Data: Absence of a centralized, holistic view of current and past customers.

Business Requirement:

The client required a consistent, automated, and efficient solution that could:

• Identify customers with a high degree of confidence in real-time.
• Provide a comprehensive 360-degree view of policyholders to the relevant business processes.

TECHNICAL SOLUTION

XTIVIA delivered a Customer Master Data Management (MDM) solution to provide a 360-degree view of the policyholders and customers. The solution leveraged XTIVIA’s MDM Project Execution Accelerator to streamline the following aspects:

1. Team Identification: Assembling the key team members.
2. Scope Definition: Clearly defining the project scope.
3. Documentation: Capturing data quality, integration, and governance requirements.
4. Deliverable Identification: Establishing clear project deliverables.
5. Solution KPIs: Defining key performance indicators for measuring success.

Roadmap Development

XTIVIA developed a multi-phase roadmap to ensure incremental value delivery of the MDM solution. This roadmap supported multiple use cases over a 12-month period, focusing on delivering immediate and ongoing benefits to the client.

Key Components of the MDM Solution

1. Data Governance Framework:
   
   • Established a Data Governance Office (DGO) and processes to ensure data accuracy and consistency.
2. Multi-Domain Modeling:
   
   • Created a customized, multi-domain data model for policyholders to meet the client’s specific needs.
3. Data Integration and Cleansing:
   
   • Sourced data from multiple systems.
   • Matched and merged duplicate customer information.
   • Cleansed and centralized data to establish a trusted MDM data source.
4. System Synchronization:
   
   • Synchronized the cleansed data with all relevant source systems to ensure consistency across the enterprise.
5. Real-Time Data Access:
   
   • Implemented SOAP and RESTful services to enable real-time access to policyholder information.
6. Customer Data Model Enhancements:
   
   • Designed the data model to include aggregate and derived values, providing deeper insights into policyholder behaviors and trends.

Benefits of the Solution

• Established a centralized, clean, and reliable source of policyholder data.
• Improved real-time data accessibility for enhanced decision-making.
• Supported a sustainable governance framework to ensure long-term data quality and consistency.

SUCCESS POINTS

• Foundation for Real-Time Rating Engine:
  • XTIVIA built the core foundation of the Customer Master, enabling the real-time rating engine to identify returning customers effectively. This enhancement allowed the integration of customer history into the rating algorithms, improving the accuracy and reliability of the rating process.
• Increased Customer Retention:
  • By identifying low-risk policyholders who were shopping for new policies, the client proactively reached out to retain these customers. This strategy resulted in a measurable increase in customer retention rates.
• IVR System Integration with Customer MDM:
  • XTIVIA integrated the client’s Interactive Voice Response (IVR) system with the Customer MDM, enabling predictive analytics to anticipate the reasons behind customer calls. This predictive capability allowed for proactive and dynamic options, such as offering a grace period for payments to low-risk customers directly through the IVR system.
• Reduced Customer Service Load: By addressing common issues through the IVR system, the workload on customer service representatives was significantly reduced.
• Focused Customer Engagement: Customer service representatives could dedicate more time to new customer calls, enhancing sales efforts and driving revenue growth.

BUSINESS RESULT

Using XTIVIA’s comprehensive resources and services, the following benefits were achieved for the client:

1. Scalable MDM Solution:
   • Delivered a long-term Master Data Management (MDM) solution, providing a solid foundation for future data management needs and scalability.
2. Risk Reduction:
   • Reduced the number of high-risk returning customers, mitigating potential losses.
3. Policy Optimization:
   • Increased the retention of low-risk returning customers by offering effective and competitive policy rates.
4. Customer Retention:
   • Enhanced customer retention through proactive outreach to policyholders shopping for new policies.
5. Improved Staff Allocation:
   • Reduced the service desk workload, enabling staff to focus on new business development and revenue generation.
6. Enhanced Customer Satisfaction:
   • Improved customer experience by offering proactive menu options through the IVR system, addressing callers’ needs efficiently and effectively.

SUMMARY

XTIVIA supported the client through the following actions:

1. Requirement Analysis:
   • Documented the requirements for the Customer Master and identified business scenarios that would benefit from its implementation.
2. Data Governance and Quality:
   • Established a robust Data Quality and Data Governance process to ensure the reliability of customer data.
   • Conducted analytics on existing data to uncover and address potential data quality issues.
3. Process Gap Identification:
   • Analyzed current business processes to identify existing gaps and challenges affecting analytics.
4. Master Data Management (MDM) Solution:
   • Proposed and implemented a Master Data Management architecture tailored to the client’s needs.
5. Integration:
   • Integrated high-quality customer data with all consumer systems using ESB (Enterprise Service Bus) and SOA (Service-Oriented Architecture).
   • Integrated the Customer Master with the Enterprise Data Warehouse (EDW) to enable comprehensive analytics on customer data.

SOFTWARE
XTIVIA Master Data Management (XMDM), TIBCO MDM, TIBCO BusinessWorks, TIBCO Patterns, TIBCO EMS, TIBCO Spotfire, Java, HTML5, AngularJS

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