A newly merged insurance company makes a giant digital leap

Challenge

Plagued by legacy systems and processes, billing and collection processes needed drastic digital updating.

When another insurance company bought our client in 2016, the push was on to cut back on business process outsourcing (BPO) and harmonize the merged company’s billing and collections functions. It looked like a tough proposition. We found an environment plagued by manual, fragmented, people-dependent processes. Plus, poorly integrated legacy systems, which hampered operations at every level, frustrated brokers and employees alike. Clearly, a BPO-only solution wasn’t the answer. To bring BPO in line, we would have to help transform the operating model with precision automation and better technology.

Solution

A suite of tech and a re-think of systems for a smooth transformation roll-out

To drive rapid, end-to-end transformation of billing and collections, all six pillars had to come into play, rolled out appropriately and in the right order.

• Intelligent automation and digitization is upping productivity, improving efficiency, and lowering operating costs. Rolled out in phases, this transformation pillar provides scalable, sustainable robotic process automation (RPA), machine learning, and cognitive solutions. Genpact’s Cora Orchestration has already automated the client’s entire correspondence process and eliminated the need for any manual cash application. What’s more, SPA is consolidating data for a machine learning model we expect to launch within the next six months. This will eventually allow for email analysis and case creation as well as discrepancy management.
• Dynamic workflow works its wonders by automating correspondence and allowing for real-time notifications, case creation, auto allocations, and approvals. The tool is also improving metrics reporting, helping standardize processes, and reducing cycle time for dispute resolution. And by replacing outdated, scattershot methods and fragmented, peopledependent processes, Genpact is orchestrating a system of engagement across the entire billing and collections area. The upshot: an enhanced experience for the client’s national brokers.

• Analytics and advanced visualization use descriptive and predictive models to foster real-time decision-making. That means underwriting teams can quickly devise collection strategies—raising premiums or halting sales, for example—to deal with late-paying brokers. Meanwhile, visualization features that link with Cora Orchestration mean CFOs will be able to see the portfolio’s high-risk percentage, for example—and can move fast to address collections issues. These tools help with staffing, too. Using them, middle management can allocate team members with the right skills to each category of broker accounts.
• Outsourcing has been cut back—meaning strategic functions can be repatriated—as digitization helps simplify and standardize the client’s highly complex processes. That’s lowering the client’s TCO because Genpact can do more with less.
• Operating model restructuring is emerging out of a new center of excellence (CoE) that Genpact established for the client. Working in concert with WorkFusion, the CoE-driven operating model boosts process efficiencies while cutting costs. Not only can the CoE help determine the right workers for the right task, it can also direct a move from functional to transactional pricing. Additionally, it can develop specialized experiences for national brokers and simpler ones for smaller brokers.
• Best practices implementation standardizes and integrates every disparate element of the client’s business—and simplifies these elements while it’s at it. In this case, best practices synchronized the client’s nine business models and 18 different processes along with their associated policies. It also brings future state applications, organizational alignment, SLAs, and reporting methodologies into line.

Impact

Highly efficient billing and collecting make cuts in outsourcing possible

Newly transformed billing and collections functions, covering more than 18 unique processes across nine business models, mean the company is on track to achieve a 50% TCO reduction over five years and a reduction in DSO from 65 days to less than 40. Other benefits? Cycle time for dispute resolution is shorter. Error-free processes, real-time decision making, and improved data visibility have significantly improved broker satisfaction. Employees are happier and more productive, too.