InOctober 2009, the Main Street America Group put the finishingtouches on a technology implementation that helped streamline thecompany's auto repair management. By integrating repair shops,adjusters, and policyholders, Main Street was hoping to increasecustomer satisfaction, cycle time improvement, and estimateaccuracy. Claims recently chatted with Mike Lancashire,vice president of claims and integrated customer solutions at MainStreet America, to find out how the process unfolded, what he wouldhave done differently, and the traits he looks for in a vendor.

Can you describe your vendor selection process? Whatwere the criteria?

LANCASHIRE: We included four vendors in our RFPprocess. Our approach was very open in order to see what creativealternatives the vendors had that we might want to consider. At ahigh level, our objectives focused on scale, service, and results.As a super-regional carrier, we want to keep true to our "MainStreet" identity while also providing a claim product competitivewith the national carriers.

There were four areas that our potential vendor had to be ableto deliver on:

• Network Management: Full management of abest-of-class repair shop and independent appraiser network.
• Positive Metrics: A positive impact on lossadjustment expenses and indemnity plus improving our establishedkey performance indicators, such as cycle time and customerservice.
• Value-Added Services: Resources to partnerwith Main Street America on compliance issues, process improvement,and expansion as our footprint grows organically and throughacquisitions and affiliations.
• Full-Service Application: Storage, dispatch,functionality, and it had to integrate with ClaimCenter, ourclaim-processing platform.

We selected Innovation Group's Innovation Auto offering becausethey had the capabilities to help us achieve our goals by providinga high level of scale and claim expertise, along with the abilityto customize their processes and software platform to support ourunique requirements. Also, the ability to tie in our independentagent-customers with Innovation's nationwide network ofcredentialed body shops was a major differentiator in our decisionto partner with them.

On a scale of one to 10, how important was the claimsystem integration aspect?

LANCASHIRE: We consider integration to be a"10." As we transitioned from a legacy system to a web-basedapplication, our staff's expectations increased. We utilizemultiple vendors and have more than 65 programs available to helpus handle our four lines of business. Each vendor program has astandalone, user-friendly front-end, but as you start togglingbetween multiple browsers, e-mail, and duplicating data entry, theadvantages of integration are apparent. Having the two systemsfunction as one provides an immediate lift in adjuster efficiencyand accuracy. We are able to use the tools in our general claimsystem plus benefit from the specialty features available from thenew platform. We completed two other integrations in 2009 withBrightClaim and Craig/is, and we have a fourth slated for firstquarter 2010 with Allegient Systems. Our goal is to be fullyintegrated with all of our major programs.

What were some of your challenges in terms ofintegration and implementation? Looking back, would you changeanything?

LANCASHIRE: This was a major project that wascompleted on time and on budget. It could not have been donewithout a lot of hard work from our claim staff, our IT department,and our claim processing system integration vendor, Capgemini, aswell as Innovation Group.

As for lessons learned, we would allocate more time forpost-implementation changes into the plan. Despite the best effortsduring the design, QA, and UAT phases, there were still items thatsurfaced after we rolled it out that made us realize that we couldhave done a better job. The integration has been a success in thatit works as designed, but we believe in continuous improvement andwe are making adjustments to get even more out of it.

Is there an audit process?

LANCASHIRE: We included auditing provisionsinto our contract with Innovation. They share our commitment toquality and both of us have benefited from the informal and formalauditing process. We have an escalation and resolution process,weekly status calls to review any issues, and just completed acomprehensive on-site audit. Also, Main Street America has adedicated vendor manager overseeing the program and we also formeda vendor advisory team that is composed of unit managers and claimrepresentatives who promote process improvements and ensurequality.

What are the top three traits an insurer should look forin a business partner when looking to set up a relationship tooutsource claims?

LANCASHIRE: First, does the partner have thetechnology, technical expertise, and scale to meet your objectives?These items are the obvious qualifications that a vendor has tobring to the table just to be in the game. We had, and continue tohave, the need for specialty products. Often, it is more effectiveto partner with an established vendor than it is to build it on ourown.

Next, look for creativity. What new ideas do they bring that youhad not previously considered? Are they willing to take calculatedrisks with you -- and then make the necessary adjustments based onthe results?

Finally look at their corporate culture. Relationships with ouragent-customers are a key to the success of Main Street America.Similarly, there has to be a strong relationship between a vendorand a company. The vendor is a reflection of the client and cannotcompromise service. Ideally, the vendor will be invisible to thecustomer and will always add value. As a leader of a claimsorganization, I have to ensure that our partners are equallycommitted to the same values, vision, and goals.