Revamping a Century-Old Insurance Company
In 2010, NFU Mutual, the mutually owned insurance company founded in 1909 by seven farmers, appointed Tim Mann as its Chief Information Officer (CIO) with a mission to modernize its operations. A significant step towards this modernization was the development of a digital copilot system, a collaborative effort between NFU Mutual, IBM, and TIBCO Software.
The copilot system, now in operation, was designed to automate major processes, specifically claims and underwriting, with the primary objective of removing paper and streamlining administrative tasks. This endeavour was facilitated by TIBCO's process mapping application, Nimbus, and TIBCO's ActiveMatrix for work routing.
The business case for this project was clear: improving customer service by streamlining administrative tasks. The new system automatically routes claims to processors based on their experience and seniority, ensuring a more efficient and effective service.
To tackle the heavy reliance on paper processes, NFU Mutual hired a local business to digitize all incoming mail. This was a crucial step, as the company's paper-heavy approach had led to complex paper trails, as evident during the UK floods in 2007.
The copilot system also integrates with TIBCO's Spotfire visual analytics tool for load management, and IBM's enterprise content management platform, FileNet, to store and manage documents. This integration allows for the content associated with a claim to be readily searchable, recoverable, and movable, further enhancing the efficiency of the system.
One employee described the system as 'our system,' indicating a sense of ownership among the staff. This sentiment is attributed to the success of the project, which was achieved by involving front-line staff in the development process.
With the copilot system up and running since early 2011, covering household insurance, NFU Mutual is now preparing for its expansion to cover the entire business. The company's traditional approach, which includes a network of 320 agents for customer reach, will undoubtedly benefit from this digital transformation.
The success of this project underscores the importance of digital transformation in the insurance industry, and NFU Mutual continues to lead the way in this regard.
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