1. Overview – Implementation Context – Implementation Scope – Implementation Timeline – Keys to Success – Questions

2. Implementation Context 1.A start up operation has its advantages – No Conversion – No Legacy Constraints – No production support (initially) – Single State (California) 2.On the other hand – No product, (forms, rates, etc..) – No System – Limited resources to start with 1 developer, 1 business analyst, 2 testers 3 underwriting, 1 claims, 1 operations, consulting actuaries – No reporting

3. Implementation Scope 1.Billing -- 2 pay plans (10 pay and full pay) 2.Claims -- Limit changes to only what was absolutely necessary to administer claims 3.Policy Administration and complete products, (forms, rates, etc..) – First Phase Business Auto – 11 coverages, 57 Forms General Liability - 2 coverages, 223 forms AGOP - 74 coverages, 40 forms – Second Phase Commercial Umbrella (carry coverages from underlying) Farm Property 41 coverages, 45 forms Farm Liability 16 coverages, 34 forms Farm Umbrella 33 forms

4. Implementation Scope 4.Limited – Workflow – Correspondence (Claims only) – Cosmetic or validation request – No scanning and Imaging, manual attachments – Integration in initial implementation – General Ledger – Vin Verification – Agents Portal

5. Development Timeline

6. Keys to success 1.Decision Making – Shift decision making based on results vs. what was planned (ties with agile development/sprints) – Remove bureaucracy (committees, reviews, etc…) – The fewer involved the better 2.Dedicated resources – Executive sponsorship and support – Blur the line between business and IT (highly collaborative) – Right people Willing to accept change Flexible, do whatever it takes, get hands dirty Knowledgeable

7. Keys to success 3.Choice of Vendor – Suite versus best of breed Ease of integration Completeness of solution and current technology (out of the box) – Web based UI and portal – Workflow, Rating, Rules, – Document and forms management – Scanning and imaging – Reinsurance – Stat reporting and business Intelligence – Insurance knowledge and approach – Configurable versus Customizable 3 hours to design, configure, attach a form 4 hours simple rating algorithms (unit tested), medium 8, complex 12 1 hour to add a field to a product, tile change, available to rating Complete new screens 4 hours 24 hours to add composite rating (screens, rating, print)

8. Keys to success 4.Change the Paradigm – Follow 80/20 rule (there will be a phase 2) – Hosted model to speed delivery – True partnership with vendor, trust, transparency – Accept change 5.Follow the process – Daily stand up meetings, review meetings, etc.. – Commitment to remove impediments – Self managed but guided teams – Focus on managing scope inside of sprints – Just in time delivery

9. Keys to success 6.Testing – Adequately plan and manage QA and UAT testing – Early business involvement – Embrace defects (requests for change) and keep moving forward

10. Questions