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Integration with an Existing Claims System

A unit of state government responsible for risk management began operating a risk pool for agencies of the state’s government in 1985. The pool started with a single line of coverage – Auto Liability – and has grown over the last 20 years to provide 14 different coverages to departments of state government as well as the community college system and select local governments. The pool reached a level of size and stability that enabled them to become more proactive about identifying and minimizing the cost of new risks. Pool management determined that becoming more proactive requires the ability to analyze data on a more frequent basis at a greater level of detail and therefore they needed an analysis and reporting system that operated on integrated policy and claims data.

The Challenge
The pool’s information system was a combination of paper files and the RiskMaster Risk Management Information System (RMIS) from Computer Sciences Corporation. RiskMaster is a property and casualty claims administration system and provides the pool with current and historical loss data. While RiskMaster has the ability to store a limited set of policy-related information, it can only do so for the current year. As a result, historical policy-related data is not available. In addition, RiskMaster was not capable of performing labor-intensive policy processing tasks such as rating and declaration page printing. The pool needed an information system that was capable of policy processing, claims processing, and analysis of current and historical data on an integrated basis.

The Solution
SST deployed the Risk360°/Policy Administration and Risk360°/Data Warehouse modules in the Risk360°ä solution family. Risk360°/Data Warehouse provides an integrated database of exposure, premium, and claim data. Claims data from RiskMaster is tied back to specific policies and coverages to support profitability and loss ratio analysis. The system is capable of performing time-series analyses (e.g. data valued as of specific dates in the past) such as loss triangles and development factors.

The Result
Risk360°/Policy Administration enables the pool to process renewals and endorsements in a fraction of the time it used to take and does it with three times the amount of data compared to the manual system. Risk360°/Data Warehouse has significantly decreased the time to produce analyses and reports while significantly increasing the frequency and depth of information.