Breaking out of the paper cycle is difficult for insurers, particularly regional carriers that cant afford big, expensive systems. But neither can they afford to print copies of every customer interaction to store in a bulging file cabinet, or mail estimates and photographs for customer claims.
When David Brinker, senior vice president and CIO of CSE Insurance, joined the multi-line carrier in 1998, he knew a challenge awaited him in delivering the company from its paper glut and manually-completed operations. The company had looked at the problem before I came on, but felt the solution was too expensive, Brinker said. By 1998 the prices were much more reasonable.
CSE looked at three vendors before selecting ImageRight and its Document Management and Workflow Solution. Brinker said the decision was easy. [ImageRight] had a better grasp on the real use of imaging in insurancecertainly better than the others, he said.
Selection came down to three issues: performance, reliability, and price. Brinker was impressed by the speed to screen of the ImageRight solution. Its just blistering in that regard, he said. Speaking to four other ImageRight customers was helpful, too. I couldnt find anyone to say anything negative, Brinker said. As far as price, Brinker said it not only fit the CES budget, but the ROI was expected in just two years.
What a vendor promises and what it delivers are often at odds, so CSE negotiated a proof-of-concept test with ImageRight. It cost the insurer just $25,000 to find out the answers it needed. We got a real feel for the product for a minimal investment, Brinker said.
Brinker said there are some real cultural issues involved in moving away from paper. That was more than what we expected. It took four to six months to actually see how the changes were working. Claims people in particular had to adjust to not having a folder on their desk for each claim.
CSE was prepared to roll out the product in early 2000. But then CSEs president, Pierre Bize, threw a curve at the IT staff. The company was about to sell its home office and was building a new office in Walnut Creek. Our president said he didnt want a records room in the new office, Brinker said. The staff switched the focus of the softwares installation from claims to operations and began a massive scanning effort.
We scanned three million documents in six months, Brinker said. The company had to bring in additional scanning hardware and hire temps to get the work done. By last September, the project was complete and the company moved into its new home. Brinker said CSE saved $95,000 in lease costs because it didnt need a records room.
Aside from those savings, CES has seen measurable benefits in all its operations, particularly with new policies. We have seen a 46 percent improvement in efficiencies in new business because thats traditionally where you create a lot of paper, Brinker said. Weve seen a 20 to 26 percent improvement in closing claims. Were going to reach break-even in costs within 16 months. Thats amazing to me.
Implementing the workflow system was not as smooth as the imaging solution. Brinker admitted one mistake was implementing it on all lines and transaction types simultaneously. We should have done it one at a time, he said. Applications were dropping out of the process. It took months to fix the holes and make it airtight.
With two other branch offices, CSE also has discovered difficult issues involving back-up and recovery. Its been a big thorn trying to make that work, Brinker said.
The workflow solution has changed the companys perspective on how it works with outside vendors. The first thing we ask is how do we integrate into workflow?, Brinker said.
CSEs growth in the last two years has made everyone in the company take notice. It went from $108 million in net written premium last year to an estimated $140 million in 2001. We were able to do that without adding additional staff, Brinker points out. Its rare to see such an impact on a corporate level.ROBERT REGIS HYLE
THE COMPANY: CSE INSURANCE
NET WRITTEN PREMIUM: $140 MILLION (2001, ESTIMATED)
WEB SITE: www.cse-insurance.com
THE PRODUCT: DOCUMENT MANAGEMENT AND WORKFLOW SOLUTION FROM IMAGERIGHT
WEB SITE: www.imageright.com
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