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CLIENT CASE STUDY


US Insurance and financial services co: Outsources mission-critical business applications

Reducing costs while improving core business operations.

Overview

To strengthen its competitive position, this leading US insurance and financial services company wanted to reduce its IT costs while focusing on its core business operations.

The company transitioned its commercial lines and claims management systems support to Accenture, resulting in more than 99.5 percent application availability and over six percent year-over-year productivity improvements.

In addition, the company reduced costs by more than $7 million annually.

We continue to help position the company for high performance through high-quality delivery coupled with industry insights, analytics and innovative tools.

Opportunity

Through application outsourcing, the company reduced costs by more than $7 million annually.

To strengthen its competitive position, the company wanted to:

  • Ramp up skills not available in house or unable to recruit.

  • Improve the efficiency and productivity of its IT organization.

  • Improve the performance of its IT organization by shifting focus and resources.

  • Improve system stability and increase availability of business-critical applications.

  • Strengthen regulatory compliance and obtain business continuity in the face of natural calamities.

Solution

  • Transitioned the ongoing management of its business-critical commercial lines and claims management applications from the company and other incumbent vendors.

  • Took over the responsibility for maintaining and evolving of business-critical commercial lines and claims applications from the company and other incumbent vendors.

  • Implemented 10 Six Sigma initiatives to drive continuous improvement in productivity and efficiency.

  • Addressed open incident resolution by use of KEDB (Known Error Database), resulting in a reduction of open incidents and improved stability for both commercial lines and claims platforms.

  • Performed volumetric analysis and cause-and-effect analysis to identify root cause of recurring incidents. Identified and completed 175 root cause removals in 2012 to reduce the incident inflow by 30 percent as compared to 2011.

  • Eliminated more than one year’s backlog of financial out-of-balance scenarios through automation, thereby helping improve financial data integrity and helping ensure compliance.

  • Shifted 10 full-time resources from production support to application development and enhancement through continuous improvement in productivity.

  • Eliminated more than one year’s backlog of financial out-of-balance scenarios through automation, thereby helping improve financial data integrity and enable compliance.

  • Streamlined the wealth management operations by integrating the company’s legacy payment systems with the marketing and sales applications in Salesforce.com.

  • Helped to ensure business continuity by supporting the processing of more than 5,250 claims per day from offshore, compared to a typical volume of 1,500 claims each day, during natural calamities such as hurricanes and blizzards that directly affected the company’s HQ office.

Results

  • The company transitioned the ongoing management of its commercial lines and claims management systems to Accenture, resulting in more than 6 percent year-over-year productivity improvements.

  • In the last three years, the company stabilized its claims and commercial lines policy servicing platforms by reducing the number of production incidents by 40 percent and improved user satisfaction by increasing application availability to more than 99.5 percent.

  • It strengthened regulatory compliance by eliminating financial out-of-balance scenarios through automation, slashing part of its reconciliation effort by up to 97 percent.

  • The company ensured business continuity by processing high volumes of claims from offshore locations during natural calamities, including Hurricane Sandy and blizzards.

  • Through application outsourcing, the company reduced costs by more than $7 million annually.

  • Accenture continues to help position the company for high performance through reliable, high-quality delivery coupled with industry insights, analytics and innovative tools to improve business performance.

Industry & topics highlighted

Applications Financial Services