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Sifting Through a Mountain of Data

Mountain Hiker

Guidewire is employing cutting edge technology to help insurers make the most out of their data, and transform a system of record to a systems of influence.

Are you getting the most from your data and technology? The answer for most insurers is probably: no.

Insurance companies hold mountains of information on their clients and operations in their databases – but we believe they are only using a fraction of this. It’s high time (re)insurers made better, more efficient use of their data records to improve decision making to the benefit of all stakeholders.

At Guidewire, we want to help you turn your database from a system of record into a system of influence.

Optimising Your Plumbing

Guidewire’s APIs and database systems already form the ‘heart and lungs’ of a huge number of personal insurance carriers worldwide. In the US alone, we estimate we process on average around 300 million transactions a year, including policies sold, claims settled, and all the work in between.

From the moment a customer buys a policy from one of our clients, their information goes straight into Guidewire’s systems. The policy data is stored in PolicyCentre. When a customer has an accident, their claim is cared for by claims adjusters in ClaimsCentre. Guidewire’s Digital solutions shuttle data from websites to our systems, and to vendors and customers quickly and

We are the plumbing that makes insurance work.

Many carriers are still using outdated technology based on legacy systems that have not been updated in years – maybe even decades. This leads to major business risks.

Insurers in this position are much less flexible and adaptable when considering new lines of business or new products. Product development can take months as new items are manually coded in. Expertise on bespoke or outdated systems is difficult to maintain as new staff are used to working with newer technology. Cross-border activity is also hindered if systems cannot be adapted to cater for local regulations. Adjusters and underwriters are limited in their access to information, and claims can take much longer to process.

With a modern, adaptable system of record based on futureproof cloud-based technology, staff can access relevant data in a fraction of the time it took previously. Open architecture technology means functionality for new products can be added in a matter of days, slashing the cost of product development. With cloud-based technology, insurers can cut the cost of their IT maintenance significantly.

Building a System of Influence

A modern database and system of record is essential for insurance companies to survive and thrive in the 21st century – but there is so much more that it can do.

Imagine if, rather than just writing those 300 million transactions a year, we could use technology to influence those transactions.

In 2017, Guidewire acquired Cyence, an intelligence engine that analyses petabytes worth of data from public, private and proprietary sources. It then uses this analysis to construct models that insurers can implement to gain valuable insights and recommendations for handling claims.

Based on this technology, Guidewire is developing an analytics business that can draw upon traditional and esoteric data to give underwriters and claims handlers all the information they need to sell each policy or tackle each case. Importantly, these ‘prescriptive analytics’ systems can also interpret this data automatically and make recommendations for employees to act on, rather than relying upon them to apply nuanced judgement.

With this technology, claims handlers and underwriters can leverage real-world information and apply recommendations generated by the Guidewire Analytics system far quicker and more consistently than with existing data tools.

New data, analytics capabilities and flexible systems will help drive innovation. For instance, by reducing the cost of acquiring and servicing customers, it would no longer be necessary to tie customers to 12-month contracts. Short-term car insurance or rental insurance would give customers added flexibility and allow for a more personalised service.

Bringing new data sources and novel, esoteric information into core systems every month means we can introduce services such as continuous digital underwriting. By constantly monitoring insured assets and associated risks, insurers can reassess their opinions ready for policy renewal. They can also get foresight on any changes that might take place upon renewal and assess the likelihood of retaining the customer.

Carriers can innovate on claims settlement as well: Data can describe the likely circumstances that arose when a claim happened – the road conditions at the time of an accident, for example. This gives handlers a better picture of the individual claim and can improve the accuracy and consistency of their decisions.

Reinventing the Core System

Guidewire Analytics is designed to help you run a more efficient insurance business that can serve customers quickly, efficiently, and accurately. It can give you better oversight of operations and improve predictability of claims. It can also help staff process straightforward transactions quickly, giving then more time on complex cases and supporting them to make good, consistent decisions.

By transforming your system of record into a system of influence, you can make you entire business more adaptable, flexible, efficient, and responsive.

At Guidewire, we are reinventing what it means to be a ‘core system’. The changes we are making will help insurance providers make smarter decisions in the future – to the benefit of all stakeholders.