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Resource

Midwest-Based National Health Carrier Consolidated 6 Siloed Systems into 1 System

This case study will show you how our client, a large national health carrier, used VUE Software Solutions to modernize their distribution system and increase efficiency.

Challenges

Our client had 6 disparate systems, with their agent records stored in 3 systems, preventing customer service representatives from accessing agent information in one place, leading to callbacks and frustration. Managing administrative and customer service communication was difficult because producer information was stored in these multiple systems. Each of the siloed systems had a unique agent number and hierarchy combinations for individual agents. This format resulted in duplication, as each agent had several agent numbers with multiple hierarchies built into each number, making it impossible to generate a single statement across lines of business. Their payment calculations were inefficient, failing to correctly reflect the hierarchy arrangements from all three systems. In addition, their agent licensing and commission processes had 167 interfaces, with different systems internally and externally, and 100 touch points with read-only access to agent information. The disparate multiple interfaces resulted in compliance issues due to delays and incohesion. Their compensation management system was also plagued with inefficiencies and errors, leading to shadow accounting and delays as well.

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Our client manually onboarded hundreds of agents on a weekly basis. The process took approximately 1– 3 weeks and involved multiple customer-service calls and delays, due to the massive amount of paperwork and telephone communication involved (faxes, data entry and repeated back-and-forth phone calls with producers and external agencies that made timeframes unpredictable). The potential for errors increased with the number of data-entry points.

Waiting for third-parties to perform background checks and authenticate data caused additional delays. Our client also has an in-house portal that offered very limited accessibility to their internal staff, brokers, and producers as it only provided access to policy and quote information.

Implementation Strategy

To address our client’s needs, VUE Software provided and implemented our Distribution Management Suite, which consolidated their 6 systems into 1 system. We also automated their processes, and integrated our solutions with some of their internal and external interfaces, such as NIPR and background-check agencies.

Highlights

  • 95% data-conversion accuracy. Our client has over 350,000 active producers, approximately 900,000 policies and millions of hierarchy arrangements.
  • Consolidation of systems being used from six (6) systems to one (1) system.
  • 50% reduction in the number of distinct agent licensing & commission (AL&C) interfaces (from 167 to 85).
  • 93% reduction in direct touch points with AL&C from 100 to 7.
  • 65% of new interfaces to leverage a new Integration Broker.
  • 30% of new interfaces to leverage shared services.

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