Case Study: The Insurer
ARNlE enables a major insurer to procure and manage repairers and third party services
The challenge
One of Australia’s leaders in banking, insurance, investment and superannuation had a challenge managing contractors and the contingent workforce. The company’s general insurance business includes personal insurance products such as home and contents and personal effects cover, motor and boat, compulsory third party insurance, workers compensation and a range of commercial insurance products tailored to the small to medium business market such as property, marine, rural and liability.
The Insurer analysed performance to determine areas for increased efficiency and organisational process improvement. The Insurer’s requirements included:
• Automating the end-to-end process of engaging automotive and truck insurance repairers and third party services such as parts pricing, quoting and invoicing systems
• Lowering the cost of motor vehicles repair claims
• Reducing claim timeframes
• Reducing double entry of data (labour costs) and automate checking of parts prices
Any technology solution needed to be fast and easy to use, to ensure take up by the third party repairers. The Insurer needed a system flexible enough to integrate with other current claims management systems. To create a market differentiator, the company also wanted to make the claims process less painful for all their customers, repairers and assessors, while improving service delivery timeframes, quality of work and customer satisfaction
The solution
The Insurer chose to deploy our ARNIE solution to automate the engagement of service providers and to eliminate manual scheduling, tracking job progress and job completion. The Insurer implemented Yarris supplier performance management SLA and KPI modules to drive performance improvements and to introduce price tension for contractors. The Insurer chose ARNIE because it facilitates the online quotations process and automates the allocation of repair work orders based on supplier performance and cost, eliminating manual handling. ARNIE also automates the management and reconciliation of contractor claims, providing full transparency of the job status and work in progress
ARNIE now provides the company with a fully automated system streamlining the end-to-end process of engaging automotive and truck insurance repairers, manage the industry’s differing work flow requirements for contractors and the contingent workforce.
ARNIE is fully automated, eliminating paperwork and reducing errors resulting from double entry of data. Hard copy documents are automatically scanned and attached to work orders, so no paperwork can go missing. This makes auditing easier, and reduces administration costs for all parties. ARNIE now provides the Insurer with detailed contractor performance reports to provide full visibility into spend, enabling the company to negotiate more efficiently with their suppliers. ARNINE contractor performance management and monitoring KPI scorecards provide the company with the ability to transform how they engaged vehicle repairers and to drive process efficiencies
The outcome
The results of the ARNIE deployment were quickly noticeable:
• Reduced the average cost of repair, saving 21% in the first year through ARNIE’s automated smart supplier selection, based on price, performance, quality and risk star ratings
• Sustainable saving of up to 3% per year on repair costs due to automated price validation of car parts
• Reduced the repair life cycle by two weeks on average
• Reduced the number of staff required to manage claims
• Minimised customer frustration and improved customer service satisfaction
• Improved outcomes to customers – returning their cars within 7 days
• Facilitated additional service guarantees to customers
• Reduced the payment time to repairers thereby improving the repairer’s cash flow – payment within a week
• Automated staff productivity reporting
• Automated expenditure reporting and analysis
• Produced fine grain reports for actuarial analysis
• Provided detailed management reporting to the customers