Importance of Data Quality April 21, 2004

Agenda  Uses & Benefits of Data  Elements of Quality  IBC Data Quality Safeguards  Metrics  Data Quality Improvement Tools  Incorporating Quality into Design  Questions

Uses and Benefits of Data  Provide Industry Analysis  Identify Emerging Industry Issues  Support Lobbying Efforts  Fraud Investigation  Government Rate Filing  Company - Business Decisions –Product, Pricing, Market

Elements of Quality  Validity/Consistency  Completeness  Timeliness  Accuracy Meets the needs of the business!

IBC Data Quality Safeguards  Business Logic / Editing  Testing Facility  Trending Analysis  Tools & Reports  Deficiency Fees  Dedicated IBC Resources –Data Quality Management

IBC Data Quality Safeguards  Accountability  Visibility  CEO Data Quality Report  Data Accuracy Profiles  Compare to Related Data Reporting  Compare to External Sources

IBC Data Quality Safeguards  Compare to Financial Statements  CFO Sign-Off  Internal Actuarial Review  External Actuarial Review  Regulator Review  Compare to Rate Filing

Error Management Error Management EDIT Errors Valid Data Valid Data Accuracy Analysis SNA FTP Data Accuracy Data Accuracy Data Submission Submission Management Submission Management Products & Services

Data Quality Management Team Vice President Manager Data Collection & Quality Data Quality Specialist – 1 Data Quality Analysts – 5 Data Entry Staff – 2 Manager Data Accuracy Data Accuracy Analysts – 3

Metrics  200+ Active Reporting Companies  6 Statistical Plans –3 Reporting Types per Plan –1,400 Data Submissions per Week  150 Million Data Records per Year  1.6% of Records have Errors –2+ Million Records Corrected per Year

2003 Data Metrics All Submitted Data Personal Lines Commercial Liability Commercial Property OSABSP Automobile Facility Automobile –98.38% –99.87% –98.40% –99.71% –91.91% –98.58% –91.76%

Metrics  3,200 Pages - Stat Plan Documentation –1,500 Pages for Automobile  10 User or Reference Manuals  5 Web Applications –1,330 Active User ID’s  2,000 Client Interactions per Week

D. Q. Improvement Tools  Documentation: – Statistical Plan Manuals – Edit Rules Documentation – Application User Manuals – Reference Manuals  Communication: – Data Quality Bulletins – Tips s

D. Q. Improvement Tools  Meetings: – Error Correction Training – Statistical Plan Coding Seminars – Status Meetings – Annual Data Quality Forum  Deficiency Fees: – Monthly Invoice – Detail Reports (showing counts, aging, etc.)

D. Q. Improvement Tools  Reports: – Submission Confirmation – Greensheets & Error Listings – Monthly Status Reports – UV Accuracy Reports – OSAB Database – Ad-hoc Reports – CEO Data Quality Report

CEO Data Quality Report

D. Q. Improvement Tools  Analysis: – Submission Process – Data Trending – Data Accuracy  Completeness Checking: –Annual Balance Reconciliation –OSABSP to ASP Balancing

D. Q. Improvement Tools  Website: – Library of Communications/Bulletins – Application Description Information – Frequently Asked Questions – Links to Data Quality Applications – All User & Reference Manuals

D. Q. Improvement Tools  5 Web Applications: –Prime> Pre-Edit Testing –SMART > Submission Management –Expert> Error Management –EEC > Error Correction –EVC> VIN Correction

Error Management Error Management EDIT Errors Valid Data Valid Data Accuracy Analysis SNA FTP Data Quality Data Quality Data Submission Submission Management Submission Management Products & Services 4SMART 4EXPERT 4EEC 4EVC 4PRIME

PRIME  Streamline Testing Process  Automate Detection of Data & Mapping Errors  Identify Required Changes to Company Programs or Translation Tables  Information provided: –Batch Structure Errors –Error Volume –Error Code Frequency –Detail Record Download

SMART  Coordinate Submission Management  On-Line Reconciliation to Confirm Balances  Provides Summary & Detail Submission Information  Allows users to: –Ensure Completeness –Identify Submission Abnormalities

EXPERT  Coordinate Error Management Process  Flexible Search Criteria  Enables User to Identify Trends  Information provided: –Most Frequent Errors –First Time Errors –Repeat Errors –Error Correction Volume –Number of Outstanding Errors

EEC  Streamline Error Correction Process  On-Line Access to Correct Errors  Refreshed Daily  Allows users to: –Improve Timeliness of Error Correction –Improve Productivity Through Bulk Correction –Reduce Paper and Courier Fees –Reduce Deficiency Fees

Questions?