1. Claims Transformation: Positioning for the Future
PCS Catastrophe Conference
April 29, 2013
Karen Furtado
Partner
Strategy Meets Action

2. SMA: Strategic Advisory Firm
Our mission is to advise, influence, and keep a finger on the pulse of the insurance industry
Advisory Retained Relationship
Project-based Consulting
Research – Syndicated and Custom
As Anthony mentioned, I am the founder of Strategy Meets Action.
I’d be remiss if I did not just take a minute to explain who we are…
We are a refreshing new choice in the insurance analyst space…
For insurers - - who have services and research around peer analysis,
What is very different about us - - is the triangle…
We always start with strategy define capabilities and then talk about investment s- -you will see in this presentation – this linkage in our presentation. 2

3. Thinking Strategically about Risk Claims Evolution
Today’s Presentation
Thinking Strategically about Risk
Claims Evolution
Examine the Marketplace – SMA Research
The State of the Possible
SMA Call to Action

4. Definition - Single View of Risk
The advance capability of real time insights and information of policy level and aggregate level risk exposure and the potential impact of the company’s book of business from a catastrophe, either natural or man made.

5. Definition - Single View of Risk
It’s a common view that leverages risk aggregation and risk visualization techniques and is shared across all stakeholders internally and externally.

6. Definition - Single View of Risk
To create the single view of the risk, insurers must leverage clean/complete transaction and external data sources, various advance geo/location tools and risk analysis tools.

7. SMA Top 10 Imperatives for Insurers Single View of Risk Aligns to 5 SMA Imperatives
Leverage Next-Gen Technologies
Transform
the CUSTOMER
Experience
Evolve RATING
with PRODUCT
CONFIGURATION
Capabilities
Redefine
the Impact
of CORE
Accelerate
Paper to
DIGITAL
Transformation
INNOVATE
for
ADVANTAGE
Commit
to Dynamic
DISTRIBUTION
Capabilities
Optimize
CLAIMS
beyond the
Transaction
Take
UNDERWRITING
Differentiation to the
Next Level
Claims
Analysis
Extend
ANALYTICS
across the
Enterprise
Profitability
Analysis
Leverage Next-Gen Technologies
Source: Strategy Meets Action 2013

8. Big Data – Power of Multiple Data Sources
Unstructured Corporate Data
Transaction Data
External
Datasets
Embedded Chips and Sensors
Social Media
/ Web
Source: Strategy Meets Action 2013

9. Key Lines of Business for Risk Data & Tools
Percent of Respondents Citing as Key LOB
Source: SMA Research 2012

10. Most Important Methods of Enhancing Data
Source: SMA Research, Data and Analytics 2012, n=165

11. Innovative Advantage of Surrounding Big Data with Advanced Tools
Geo-coding
Data cleansing
Risk analysis
Business
Intelligence
Visual mapping
Source: Strategy Meets Action 2013

12. Thinking Strategically about Risk Claims Evolution
Today’s Presentation
Thinking Strategically about Risk
Claims Evolution
Examine the Marketplace – SMA Research
The State of the Possible
SMA Call to Action

13. The Future Claims Value Chain
Emphasis
Current
Emphasis
Loss
Prevention
Loss
Mitigation
Loss
Restoration
Loss Control
(all lines)
Safety
Engineering
Programs
Wellness
Programs
Disaster
Preparedness
Programs
Real-time Monitoring
& Alerts
Mobile
Enablement
Assign-ment.
Investig-
ation
Coverage
Verification
Loss
Reserving
Negotiation
&
Settlement
Litigation
Mgmt
Recovery
(Subro &
Salvage)
FNOL
Fraud Detection
Case Management
Claim Analytics
CAT Management
Source: Strategy Meets Action 2013

14. The Future of Claims Prevention Mitigation Restoration
Instrumentation/GPS
Safety Engineering
Enhanced Risk Selection
Location based data
External risk data
Analytics
Risk Mgmt. & Loss Control across lines
Social media
Wellness focus
Instrumentation/GPS
Mobile access
Claimants
Adjusters
Partners
Disaster preparedness
Improved CAT management
Prevention
Mitigation
Restoration
Mobile adjusters
Automated/Self-adjusting
Fully networked providers
Customer Communications Management discipline
New technologies
Source: Strategy Meets Action 2013

15. Thinking Strategically about Risk Claims Evolution
Today’s Presentation
Thinking Strategically about Risk
Claims Evolution
Examine the Marketplace – SMA Research
The State of the Possible
SMA Call to Action

16. IT Spending by Capability Area 2013
IT Spending Moving Out of the Back Office
Front
Office
Middle
Office
Back
Office
Increase
Flat (No Change)
Decrease
Source: SMA Research, Insurance Ecosystem 2013, n=157

17. Top 5 Business Drivers of Technology Investment
Percent citing as a key business driver
Source: SMA Research, Claims Transformation 2011, n=337

18. Business Capabilities Focus
The focus areas … compliance, efficiency and data
Source: SMA Research, Claims Transformation 2011, n=337

19. Technology Capabilities Focus
Efficiency, service and information are the critical areas of focus
Source: SMA Research, Claims Transformation 2011, n=337

20. SMA Next-Gen Technologies for 2013
1. Mobile Maturity
2. Social Media Momentum
3. Analytics and Big Data Leverage
4. Collaboration Expansion
5. Cloud Computing Growth
6. Telematics Tipping Point
Source: Strategy Meets Action 2013

21. Proactive and Reactive Mobile Interactions

22. Data & Analytics for Claims
History
Reporting
Spread-
sheets
Paper-based
Reports
Operational
Results
(Efficiency)
Policy
External
Risk Data
Ad-hoc
Queries
Dashboards
&
Scorecards
Analysis
Business Intelligence
Business
Planning
Information
(Effectiveness)
CAT Models
Fraud
Advanced
Statistical
Analysis
Predictive
Models
Analytics
Analytic
Collab-
oration
Advanced Analytics
Vendors
Proactive
Loss Control
& Disaster Mgmt
(Transformation)
Legal
Source: Strategy Meets Action 2013

23. Telematics Tipping Point

24. Leveraging Conjoinment
Applications
Technologies
Portals
Rules
Front Office
Back Office
Middle Office
Connectivity
BPM
Predictive Analytics
Illustrations and e-Submissions
Product Management
Mobile
Data
Workflow
Rating
CRM
Social Media
Underwriting /
New Business
CCM
Policy Administration
UXP
Claims
Business Intelligence
ECM
Billing
Cloud
Source: SMA Research, Insurance Ecosystem 2012, n=126

25. Leveraging Conjoinment
Applications
Technologies
Portals
Rules
Front Office
Back Office
Middle Office
Connectivity
BPM
Predictive Analytics
Mobile
Data
Workflow
Social Media
CCM
Claims
Business Intelligence
ECM
Cloud
Source: SMA Research, Insurance Ecosystem 2012, n=126

26. Thinking Strategically about Risk Claims Evolution
Today’s Presentation
Thinking Strategically about Risk
Claims Evolution
Examine the Marketplace – SMA Research
The State of the Possible
SMA Call to Action

27. SMA Definition of Innovation
idea
RETHINK REINVENT REIMAGINE RETOOL
ROLES, PRODUCTS, SERVICES, AND/OR PROCESSES
… TRANSFORMS CUSTOMER/EMPLOYEE EXPERIENCE
AND/OR
ACHIEVES GAME-CHANGING RESULTS …

28. Innovation in Action
Travel Industry

29. Innovation in Action
Travel Industry

30. SMA Business Value Maturity Matrix
OPERATIONAL
Excellence
Innovate
Competitive
Advantage
Optimize
Modernize
Effectiveness
Typical End Point
Replace+
Maintain
Status Quo
COMPETITIVE POSITIONING
Laggard
Mainstreamer
Mover
Market Leader
Source: Strategy Meets Action 2013

31. Thinking Strategically about Risk Claims Evolution
Today’s Presentation
Thinking Strategically about Risk
Claims Evolution
Examine the Marketplace – SMA Research
The State of the Possible
SMA Call to Action

32. Claims CAT Capabilities COMPETITIVE POSITIONING
SMA Business Value Maturity Matrix Claims Moving Beyond the Transaction
Competitive
Advantage
OPERATIONAL
Excellence
Innovate
Claims CAT Capabilities
Optimize
Modernize
Effectiveness
Typical End Point
Replace+
Maintain
Status Quo
COMPETITIVE POSITIONING
Laggard
Mainstreamer
Mover
Market Leader
Source: Strategy Meets Action 2013

33. Claims Transformation: Positioning for the Future
The content in this deck is the property of Strategy Meets Action and a copy has been made available to attendees of the PCS CAT Conference April 2013.
Do not distribute externally.
Karen Furtado
Partner
Strategy Meets Action