Digital Transformation in Insurance: XTIVIA’s Journey with State Workers’ Compensation

Organization

Founded in 1991 by its state legislature, our client serves as a dedicated Workers’ Compensation Insurance Fund, providing accessible and affordable coverage. Currently insuring over 70,000 businesses and protecting 1.5 million workers, the organization commands 43% of the market.

With a reputation for excellence in loss prevention, efficient claims management, and return-to-work programs, the organization has earned an AM Best “A” rating, highlighting its financial strength and operational reliability.

Challenge

By 2014, the client faced mounting challenges due to their aging 20+-year-old AS400 system, which hindered operational efficiency and scalability. With the insurance industry rapidly transitioning toward REST API and Commercial-Off-The-Shelf (COTS) solutions, retaining and developing technical expertise for legacy platforms has become unsustainable.

Guidewire InsuranceSuite emerged as the industry’s premier end-to-end solution, offering integrated modules for underwriting, policy, claims, and billing management. To align with their goals of delivering affordable and reliable insurance products, the client selected Guidewire InsuranceSuite to modernize their core operations.

Key objectives included:

• Guidewire Claims Center: To streamline the claims lifecycle with intuitive loss-report intake, advanced adjudication processes, and integrated operational reporting.
• Guidewire Policy Center: To serve as the system of record for policy lifecycle management, encompassing product definition, underwriting, quoting, endorsements, renewals, and more.
• Guidewire Billing Center: To enhance compliance with PCI and PII regulations, leveraging third-party payment services integrated with Policy Center for precise billing and accounting.

The organization sought a partner with deep expertise in Integration PAAS ( Platform-As-A-Service) and insurance domain knowledge to:

1. Develop an Integration Strategy: To seamlessly connect Guidewire’s modules with customer touchpoints, third-party services, and legacy systems.
2. Ensure Minimal Customization: To maximize the out-of-the-box capabilities of Guidewire.
3. Enable Data Migration and Downstream Integration: To support a smooth transition without disrupting business continuity.

XTIVIA was selected for its robust experience in enterprise integration, mastery of ESB architecture, and deep knowledge of insurance business models.

Solution

XTIVIA partnered with the client and Guidewire specialists to design and implement a state-of-the-art integration strategy powered by TIBCO BusinessWorks. This platform orchestrated real-time and batch data flows, leveraging service definitions and event-driven triggers to enable seamless communication across systems.

The solution encompassed the full insurance lifecycle, including quoting, underwriting, policy binding, endorsements, renewals, rewrites, and cancellations. XTIVIA’s scope of work included:

• User Experience Modernization: Developing a new interface tailored for Account Representatives and Claims Personnel.
• Data Migration and Conversion: Seamlessly migrating 30 years of active and historical claims and policy data.
• Decommissioning Legacy Systems: Phasing out services for auto and commercial lines as Guidewire modules came online.
• Business Rule Development: Creating custom business rules to support unique client requirements.
• Downstream Integration: Enabling Guidewire services to interact with external systems and legacy workflows.

In 2022, the client further modernized by transitioning to the MuleSoft Anypoint Platform, selecting XTIVIA as their strategic partner for this initiative. XTIVIA defined a robust API strategy, enabling a phased migration from TIBCO to MuleSoft services without operational disruptions. This transition ensured a scalable, cloud-based architecture capable of supporting future innovation.

BUSINESS RESULT

Over three years, XTIVIA successfully delivered a fully web-based, integrated platform featuring:

• Guidewire Claims Center 7
• Guidewire Policy Center 8
• Guidewire Billing Center 8

Key achievements included:

• Seamless Migration: Transitioned 70,000 business accounts, 1.5 million covered workers, and 500,000 historical claims spanning three decades.
• Cost Optimization: Reduced annual maintenance expenses by retiring legacy systems and leveraging modern, scalable platforms.
• Improved User Experience: Enhanced usability for employees and customers, surpassing expectations for service delivery.
• Future-Ready Roadmap: Delivered a comprehensive technology roadmap enabling scalability, innovation, and long-term operational stability.

Through XTIVIA’s expertise, the client not only modernized their operations but also positioned themselves as a forward-thinking leader in the workers’ compensation insurance industry. This transformation reflects a commitment to delivering superior insurance products while optimizing internal efficiency and customer satisfaction.

KEYWORDS

Workers’ Compensation Insurance, Guidewire InsuranceSuite, Integration PAAS, Claims Lifecycle Management, Policy Lifecycle Management, TIBCO BusinessWorks, MuleSoft Anypoint Platform, API Strategy, Insurance Modernization, Legacy System Migration, REST, COTS Solutions, Data Migration, Business Rule Development, Digital Transformation, Compliance (PCI/PII), Insurance Technology Innovation

SOFTWARE

Guidewire InsuranceSuite: Claims Center, Policy Center, Billing Management, TIBCO BusinessWorks, Mulesoft Anypoint Platform, AS400 Legacy System (phased out), Third-party Payment Services (PCI/PII compliance), Data Migration Tools

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