New technologies and standards allow

integration initiatives to be completed

more efficiently and quickly than ever
before.

Insurance companies have benefited

Webinar: by taking a Process-centric and SOA-
based approach to building seamless
integration bridges between back-end
applications and connecting them to
agents and partners.
A new approach to
Integration
September 14, 2007

Sponsored by:
Webinar guidelines

Š All participants will be automatically muted during the webinar

Š Question and Answer session will follow the entire presentation

Š Please feel free to type your questions, via the “Question and Answer“ tab
and send them during the webinar. Identify the panelist from which you are
requesting a response.

Š After the presentations the moderator will direct your written questions to
the appropriate panelist for their answer

Š The presentation and responses to unanswered questions will be available

on the Adeptia website after the webinar (www.adeptia.com)

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Agenda

Š Introductions
„ Moderator: Mary Ann Lusk, COO, Adeptia
„ Chris Spring, Senior VP Business Operations / CIO, Meadowbrook Insurance Group
„ Cindy Powell, President, Bespoke Management and Technology Services
„ Deepak Singh, CTO, Adeptia

Š What is the new approach to integration?

Š Meadowbrook Case Study

Š Preserver Case Study

Š Discussion and Q&A

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What is Integration?

Š Enables timely access to information

Š Data is lifeblood of any organization
Š Various types of integration
„ Enterprise Application Integration (EAI)
„ Business to Business Integration (B2BI)
„ Extract Transform Load (ETL)
„ One-time Migration, etc.

Š Represents one of the most challenging IT initiatives

Š Better integration
Î More Flexibility
Î Competitive Advantage

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Traditional approach to Integration

Š Integration centric view

Š Developer heavy approach, minimal involvement of business analyst
Š Lot of custom code is used to build interfaces between applications
Š Little to No reusability
Š Difficult to maintain because rules are embedded in code

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New approach to Integration

Š PROCESS CENTRIC
Š SERVICES BASED

Š Overall solution is represented as a process flow

with distinct steps (Services)
Š Each Service is a discrete business function that is
automated
Š Each Service is made up of one or multiple run-time
components
Š Services contain business, data validation, mapping
and connectivity rules
Š Services are not embedded in the solution but are
saved as objects in repository

Î Take a complete business process view of the

solution, not just integration
Î Services are available for future projects

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New approach – saves time and reduces risk

Š Process oriented view of overall solution

Š Heavy involvement of business analysts in documenting processes,
identifying business rules and “improving” overall process
Š Services-based, modular architecture of solution
Š Minimal custom code
Š Key Steps in implementing solution:
„ Look at the whole business process rather than just integration touch-points Î Model Process
„ Break the process into distinct business functions Î Identify Services
„ Create these Services and save them in a repository Î Library of Services
„ Sequence and connect the Services to automate the process Î Orchestrate Services

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New approach to Integration is vastly better

Before… Now

Š Extensive use of custom Š Minimal custom coding

coding takes a long time Š Improves data quality
Š Data quality and integrity Š Scalable, high degree of
issues reuse
Š Difficult to maintain Š Easier to maintain

Î Expensive Î At least 50% lower cost

Î Slow Î At least 75% faster
Î High risk of failure Î Low risk of failure

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About Meadowbrook Insurance

Š Chris Spring, Senior VP Business Operations/CIO

Š HQ in Southfield, Michigan
Š Founded in 1955
Š NYSE: MIG
Š Multiple companies and subsidiaries
Š A leader in the alternative risk market, Meadowbrook is a program-
based risk management company, specializing in alternative risk
management solutions for agents and small to medium-sized
insureds.

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Business Problem

MEADOWBROOK

PARTNER F
I
1 2
R 3

E
W Business users
Gallagher Bassett – Rec’vd Mail
A manually review
Third Party Claim Adjuster and process the POINT –
L
data file Policy Mgmt System
L

Š Issue: At least 2 month+ lag in accurate reflection of loss information

Š Gallagher Bassett (GB) handles claims for some Meadowbrook programs &
Lines of Business
Š GB physically sends monthly files with claims activity information that is
manually processed

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Original “As-Is” Process – Totally Manual

GB MIG analyzes Claim Financials

report to MIG enters
Claims Generates Updated on
identify new new TXNs
TXN at GB Monthly POINT during
transactions in POINT EOM processing
Report

Resolve
unmatched TXNs

Š Analysis to identify new transactions from the cumulative report

Š Side by side comparison of previous month with current month to identify
the changes including new claims, reserve updates, payments, recoveries,
subrogation and policy changes
Š Significant interaction with GB to resolve mismatches and errors
Š Data entry into POINT after manually applying many data validation and
business rules

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Solution goals

Š Goals:
„ Create automated data transfer process, minimize time and manual intervention
„ Synchronize information at Gallagher Bassett and Meadowbrook
„ Establish controls to ensure accuracy and consistency of information in POINT
„ Allow management access to up to date loss information
„ Utilize Business Users only for error-handling

Š Prior attempt to implement an automated claim interface was not

successful
„ All the data validation and business rules could not be implemented
„ Unacceptable level of error ratio for data going into POINT

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Solution approach
BEFORE
MEADOWBROOK

PARTNER F
I
1 2
R 3

E
W Business users
Gallagher Bassett – Rec’vd Mail
A manually review
Third Party Claim Adjuster and process the POINT –
L
data file Policy Mgmt System
L

AFTER
MEADOWBROOK

PARTNER F
I
1 2
R 3
Internet E
W ADEPTIA
Gallagher Bassett – FTP Server
A
Third Party Claim Adjuster POINT –
L
L 4 Policy Mgmt System
Business user
resolves errors

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SOA-based, Process-centric Solution Flow

Š Business Process for new solution was modeled by Business Analysts

Š Developers took the business process and created a solution flow
Š They grouped atomic steps to identify “Services”
Î Complete business process view of the solution, not just integration

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SOA-based, Process-centric Solution Flow

Š Services were individually created and saved in repository

Š Services were sequenced together with Decision nodes to automate solution flow
Š Solution was implemented and deployed quickly
Î Services are available for future projects
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Services and Flows created Graphically

Auto-generate thousands
of lines of code !!!

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Error-Handling Screens
Š Business users are notified by emails
when any error-records are found
Š They login via web-browser to review and
fix errors
Î Significant increase in productivity!

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Project a Success !!!

Š Reduced lag time in viewing

loss information from
2+ months Î 2 days
Š All business goals met
Š Solution created Services
(reusable components) for
future projects
„ Overall process flow template
„ Services with business rules
„ Connectors for POINT
„ Data validation rules

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About Bespoke

Š Cindy Powell, President

Š Based in New Hope, PA
Š Founded in 2003
Š Provides project management, programming
and business analyst support for Preserver
Insurance and Tower Group
Š Bespoke offers IT services to the property
and casualty insurance industry. Products
offered include consulting, project staffing,
and insurance engineering.

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About Preserver Insurance

Š Based in Paramus, New Jersey

Š Founded as Motor Club of America Insurance Company
in 1926
Š Acquired by Tower Group Inc. April 10, 2007
Š Preserver is a regional company committed to providing
the highest standard of property/casualty insurance
through independent agents. Preserver Group provides
a wide variety of property/casualty insurance products
specifically tailored to meet the needs of the small and
mid-sized commercial markets in the Middle Atlantic and
New England regions.
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Business Problem

AGO Rating and Issuance System

BOP Program circa 1992 POINT –
Policy Mgmt System

POINT –
BOP 02 CTI – Rating System IPD Policy Mgmt System

Š New BOP program requires fast track implementation

Š CTI Interface does not include BOP
Š CTI provides 1st Release of new database (IPD) for interfaces
Š Technical skills required for Oracle to AS400 interface not available in-house
„ Programming staff are fluent in AS400 and COBOL, no Oracle experience
„ Business Analysts are not familiar with IPD
„ Early adopter problems with IPD

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Original “As-Is” Process

CTI Interface programs

Accounting Extract (custom code)

POINT –
BOP 02 CTI – Rating System Policy Mgmt System

Business users correct errors in CTI

and/or manually add records to POINT

Š CTI interface delivers data through nightly batch cycle

„ Failures require entry of data directly into POINT
„ Process requires IT staff to monitor and notify users when failures occur
„ Minimal editing resulting in incorrect or missing data in POINT
„ Large number of work-a-rounds in existing process not acceptable to user community

Š IPD is not being utilized

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Solution goals and approach

Š Goals:
„ Implement BOP 02 quickly and efficiently
„ Improve interface performance and maintainability
„ Improve data integrity across integrated systems
„ Establish framework for future integration projects

Š Approach
„ Use current CTI and POINT infrastructure to fast track new product implementation
„ Develop new interface to utilize IPD (performance and maintainability)
„ Incorporate business rules and editing in interface program
„ Incorporate edit correction workflow into interface process
„ Design interface for re-use

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New “To-Be” Process

BOP 02

ADEPTIA
IPD POINT –
CTI – Rating System Policy Mgmt System

Automatic e-mail
notification triggers
Business User to resolve
errors in CTI

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SOA-based, Process-centric Solution Flow

Š Business Process for new solution was modeled by Business Analysts

Š Developers took the business process and created a solution flow
Š They grouped atomic steps to identify “Services”
Î Complete business process view of the solution, not just integration

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Project Implementation and Benefits

Š Deployment PROJECT A SUCCESS!!!

„ Project completed on-time
concurrent with full system
implementation
„ Maintenance turned over to Bespoke
production support team
„ Services re-used for ACORD AL3
download project
„ Additional projects scheduled
Š All business goals met
Š Solution created Services
(reusable components) for future
projects
„ Overall process flow template
„ Services with business rules
„ Connectors for IPD and POINT
„ Data validation rules improved data integrity

ADEPTIA

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Discussion

Questions and Answers

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 THANK YOU

We will keep you informed regarding future dates for the

Adeptia Webinar Series

For additional information please visit: www.adeptia.com

Please contact Adeptia to schedule a personalized demonstration of

Adeptia technology.

Adeptia would like to offer a free consultation for current or upcoming

integration projects.

Email: info@adeptia.com
Phone: 312-229-1727 x118

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