Sponsored: Delphi Technology Inc.

Insurers Challenged By New Technology Driven Landscape

A legacy administration platform that is modern and adaptable to ever-changing market conditions is critical to P&C insurers.
By: | February 1, 2017 • 5 min read

A host of new technologies is creating a new reality for insurers; one that includes competition from non-traditional players and small carriers, and one where speed to market is more critical than ever to gain an advantage.

Technology has made it easier for more entities to enter the market. Smaller, newer insurers typically have more updated systems and can adapt to change more nimbly, giving them an edge over their larger and older counterparts. Non-traditional companies, specializing in the creation of new tools, apps and software, are starting to fill a need for customers and agents that previously fell to insurers who now may be struggling to keep up.

“Carriers are under siege from non-traditional players,” said John J. Flavin, Senior Vice President and Chief Business Development Officer, Delphi Technology. “They’re starting to edge in to provide modern systems and additional data sources for the industry, agents’ manual processes for collecting information are fading out.”

As with any change, those who can’t adapt quickly stand to fall behind.

To succeed in this new reality, insurers need to shed the constraints of their legacy administration systems in exchange for a more modern, flexible platform that conforms to changing customer demand quickly and can get products to market ahead of the competition.

Overcoming Cumbersome Systems

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John Flavin, Senior Vice President and Chief Business Development Officer

Legacy policy administration systems are built on code and can only be changed with the help of a skilled programmer changing code by hand on the back end. No handy user interface here. Updating and maintaining products means enlisting the IT department, and the process can be complex and time consuming.

Additionally, legacy systems allow little room for communication and collaboration with either internal stakeholders or external parties like agents. This adds even more time to the project of updating a policy and gaining approval from those parties. Collecting data from agents and input from other stakeholders, and incorporating that information into the product through a legacy system is time-consuming. Those delays matter when speed to market is a key competitive factor.

A flexible, rules-and-tools based system, on the other hand, can more easily conform to a carrier’s workflow and adapt to change.

Delphi Policy, built on Delphi Technology’s new Velocity platform, provides that flexibility.

“Delphi Policy is a rules and tools based modern platform that allows carriers to respond to market needs and connect with their customers more easily. It becomes the central point of contact from a point-of-sale perspective for underwriters to do business,” Flavin said.

A flexible platform like Velocity can support both a collaborative workflow as well as increasingly popular straight-through processing. Straight-through processing, or automated underwriting, allows policy submissions or renewals to be processed start to finish almost entirely untouched by human hands.

As long as a submission meets criteria set by the underwriter, the system can generate a quote, bind the coverage and issue a policy. The underwriter would only have to look at those outlier submissions that trigger what Flavin calls underwriting referrals or “knockout” questions: responses that fail to meet certain criteria like loss ratio, premium, class code or loss history threshold requirements.

With a modern system, underwriting management has more freedom to set underwriting  criteria and mandatory questions themselves. This increases the quality of submissions, processing efficiency and the performance of the underwriter.

Modern systems can integrate with 3rd party data sources to pre-fill submissions, which significantly cuts down on the time it takes to collect relevant information and provides the user with a better online experience.

Delphi Policy’s ability to import and export data to other modules so other parties can view it also allows for communication and collaboration between underwriter, claims examiner, billing manager and agent. This makes for a more interactive user experience for colleagues, agents and customers and allows the underwriter to quickly resolve any questions.

“Policyholders are getting used to communicating with agents and carriers in a variety of electronic methods,” Flavin said. “The Velocity platform supports that collaboration, exchange of information and interaction with role based, context sensitive access to information.

Prepping New Products with Delphi Policy

In conjunction with Delphi’s Accelerator product workbench, underwriters can maintain rates, rules and forms for existing products or create new ones in a “sandbox” environment, allowing them to test launch and share new policies with stakeholders before going to production. The Delphi Accelerator dashboard — a central, business-friendly work area that provides access to multiple tools and modules simultaneously — deploys products directly to Delphi Policy when they’re ready for production.

“It takes months of code and/or configuration in order to create and launch products in a test environment with legacy systems. It takes a lot more research and business planning to decide if you want to deploy your resources to create a test bed of any kind,” Flavin said.

With Delphi Accelerator, it’s easier to react to market demands. Product managers can test out new deductible or coverage options, and model a book of business based on the changes. And because changes can be made using a built-in tool, rather than through adjusting code in the back end, business users don’t need to call in IT to get the job done.

Because Delphi Policy is available as a cloud-based solution, it can take hardware maintenance out of the equation altogether. And with the integration of Delphi’s claims and billing modules, it provides a one-stop-shop suite of tools for full policy lifecycle management.

To learn more about Delphi Policy, visit www.Delphi-Tech.com.

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This article was produced by the R&I Brand Studio, a unit of the advertising department of Risk & Insurance, in collaboration with Delphi Technology Inc. The editorial staff of Risk & Insurance had no role in its preparation.




Delphi Technology is the recognized leader in technology solutions for medical professional liability insurance and an emerging provider of technology solutions for property and casualty insurance.

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Emerging Risks

Stadium Safety

Soft targets, such as sports stadiums, must increase measures to protect lives and their business.
By: | January 10, 2018 • 8 min read

Acts of violence and terror can break out in even the unlikeliest of places.

Look at the 2013 Boston Marathon, where two bombs went off, killing three and injuring dozens of others in a terrorist attack. Or consider the Orlando Pulse nightclub, where 49 people were killed and 58 wounded. Most recently in Las Vegas, a gunman killed 58 and injured hundreds of others.

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The world is not inherently evil, but these evil acts still find a way into places like churches, schools, concerts and stadiums.

“We didn’t see these kinds of attacks 20 years ago,” said Glenn Chavious, managing director, global sports & recreation practice leader, Industria Risk & Insurance Services.

As a society, we have advanced through technology, he said. Technology’s platform has enabled the message of terror to spread further faster.

“But it’s not just with technology. Our cultures, our personal grievances, have brought people out of their comfort zones.”

Chavious said that people still had these grievances 20 years ago but were less likely to act out. Tech has linked people around the globe to other like-minded individuals, allowing for others to join in on messages of terror.

“The progression of terrorist acts over the last 10 years has very much been central to the emergence of ‘lone wolf’ actors. As was the case in both Manchester and Las Vegas, the ‘lone wolf’ dynamic presents an altogether unique set of challenges for law enforcement and event service professionals,” said John

Glenn Chavious, managing director, global sports & recreation practice leader, Industria Risk & Insurance Services

Tomlinson, senior vice president, head of entertainment, Lockton.

As more violent outbreaks take place in public spaces, risk managers learn from and better understand what attackers want. Each new event enables risk managers to see what works and what can be improved upon to better protect people and places.

But the fact remains that the nature and pattern of attacks are changing.

“Many of these actions are devised in complete obscurity and on impulse, and are carried out by individuals with little to no prior visibility, in terms of behavioral patterns or threat recognition, thus making it virtually impossible to maintain any elements of anticipation by security officials,” said Tomlinson.

With vehicles driving into crowds, active shooters and the random nature of attacks, it’s hard to gauge what might come next, said Warren Harper, global sports & events practice leader, Marsh.

Public spaces like sporting arenas are particularly vulnerable because they are considered ‘soft targets.’ They are areas where people gather in large numbers for recreation. They are welcoming to their patrons and visitors, much like a hospital, and the crowds that attend come in droves.

NFL football stadiums, for example, can hold anywhere from 25,000 to 93,000 people at maximum capacity — and that number doesn’t include workers, players or other behind-the-scenes personnel.

“Attacks are a big risk management issue,” said Chavious. “Insurance is the last resort we want to rely upon. We’d rather be preventing it to avoid such events.”

Preparing for Danger

The second half of 2017 proved a trying few months for the insurance industry, facing hurricanes, earthquakes, wildfires and — unfortunately — multiple mass shootings.

The industry was estimated to take a more than $1 billion hit from the Las Vegas massacre in October 2017. A few years back, the Boston Marathon bombings cost businesses around $333 million each day the city was shut down following the attack. Officials were on a manhunt for the suspects in question, and Boston was on lockdown.

“Many of these actions are devised in complete obscurity and on impulse, and are carried out by individuals with little to no prior visibility.” — John Tomlinson, senior vice president, head of entertainment, Lockton

“Fortunately, we have not had a complete stadium go down,” said Harper. But a mass casualty event at a stadium can lead to the death or injury of athletes, spectators and guests; psychological trauma; potential workers’ comp claims from injured employees; lawsuits; significant reputational damage; property damage and prolonged business interruption losses.

The physical damage, said Harper, might be something risk managers can gauge beforehand, but loss of life is immeasurable.

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The best practice then, said Chavious, is awareness and education.

“A lot of preparedness comes from education. [Stadiums] need a risk management plan.”

First and foremost, Chavious said, stadiums need to perform a security risk assessment. Find out where vulnerable spots are, decide where education can be improved upon and develop other safety measures over time.

Areas outside the stadium are soft targets, said Harper. The parking lot, the ticketing and access areas and even the metro transit areas where guests mingle before and after a game are targeted more often than inside.

Last year, for example, a stadium in Manchester was the target of a bomb, which detonated outside the venue as concert-goers left. In 2015, the Stade de France in Paris was the target of suicide bombers and active shooters, who struck the outside of the stadium while a soccer match was held inside.

Security, therefore, needs to be ready to react both inside and outside the vicinity. Reviewing past events and seeing what works has helped risk mangers improve safety strategies.

“A lot of places are getting into table-top exercises” to make sure their people are really trained, added Harper.

In these exercises, employees from various departments come together to brainstorm and work through a hypothetical terrorist situation.

A facilitator will propose the scenario — an active shooter has been spotted right before the game begins, someone has called in a bomb threat, a driver has fled on foot after driving into a crowd — and the stadium’s staff is asked how they should respond.

“People tend to act on assumptions, which may be wrong, but this is a great setting for them to brainstorm and learn,” said Harper.

Technology and Safety

In addition to education, stadiums are ahead of the game, implementing high-tech security cameras and closed-circuit TV monitoring, requiring game-day audiences to use clear/see-through bags when entering the arena, upping employee training on safety protocols and utilizing vapor wake dogs.

Drones are also adding a protective layer.

John Tomlinson, senior vice president, head of entertainment, Lockton

“Drones are helpful in surveying an area and can alert security to any potential threat,” said Chavious.

“Many stadiums have an area between a city’s metro and the stadium itself. If there’s a disturbance there, and you don’t have a camera in that area, you could use the drone instead of moving physical assets.”

Chavious added that “the overhead view will pick up potential crowd concentration, see if there are too many people in one crowd, or drones can fly overhead and be used to assess situations like a vehicle that’s in a place it shouldn’t be.”

But like with all new technology, drones too have their downsides. There’s the expense of owning, maintaining and operating the drone. Weather conditions can affect how and when a drone is used, so it isn’t a reliable source. And what if that drone gets hacked?

“The evolution of venue security protocols most certainly includes the increased usage of unmanned aerial systems (UAS), including drones, as the scope and territorial vastness provided by UAS, from a monitoring perspective, is much more expansive than ground-based apparatus,” said Tomlinson.

“That said,” he continued, “there have been many documented instances in which the intrusion of unauthorized drones at live events have posed major security concerns and have actually heightened the risk of injury to participants and attendees.”

Still, many experts, including Tomlinson, see drones playing a significant role in safety at stadiums moving forward.

“I believe the utilization of drones will continue to be on the forefront of risk mitigation innovation in the live event space, albeit with some very tight operating controls,” he said.

The SAFETY Act

In response to the terrorist attacks on Sept. 11, 2001, U.S. Homeland Security enacted the Support Anti-Terrorism by Fostering Effective

Warren Harper, global sports & events practice leader, Marsh

Technologies Act (SAFETY Act).

The primary purpose of the SAFETY Act was to encourage potential manufacturers or sellers of anti-terrorism technologies to continue to develop and commercialize these technologies (like video monitoring or drones).

There was a worry that the threat of liability in such an event would deter and prevent sellers from pursing these technologies, which are aimed at saving lives. Instead, the SAFETY Act provides incentive by adding a system of risk and litigation management.

“[The SAFETY Act] is geared toward claims arising out of acts of terrorism,” said Harper.

Bottom line: It’s added financial protection. Businesses both large and small can apply for the SAFETY designation — in fact, many NFL teams push for the designation. So far, four have reached SAFETY certification: Lambeau Field, MetLife Stadium, University of Phoenix Stadium and Gillette Stadium.

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To become certified, reviewers with the SAFETY Act assess stadiums for their compliance with the most up-to-date terrorism products. They look at their built-in emergency response plans, cyber security measures, hiring and training of employees, among other criteria.

The process can take over a year, but once certified, stadiums benefit because liability for an event is lessened. One thing to remember, however, is that the added SAFETY Act protection only holds weight when a catastrophic event is classified as an act of terrorism.

“Generally speaking, I think the SAFETY Act has been instrumental in paving the way for an accelerated development of anti-terrorism products and services,” said Tomlinson.

“The benefit of gaining elements of impunity from third-party liability related matters has served as a catalyst for developers to continue to push the envelope, so to speak, in terms of ideas and innovation.”

So while attackers are changing their methods and trying to stay ahead of safety protocols at stadiums, the SAFETY Act, as well as risk managers and stadium owners, keep stadiums investing in newer, more secure safety measures. &

Autumn Heisler is a staff writer at Risk & Insurance. She can be reached at [email protected]