The Exposure Management Services team at Chaucer fulfills a vitally important role in helping the organization to better understand, manage and price risk. It performs detailed location-based analysis into catastrophes such as hurricanes and earthquakes so that underwriters can prevent over-exposure to risks in similar locations and make better decisions about which policies to underwrite and at what premium.
Every year, the team of five risk analysts handles over 1000 requests for risk models from 20 underwriters based in London, Miami, Singapore and Copenhagen. Yet, this huge volume of work was managed in an ad hoc way through emails, phone calls and spreadsheets. Underwriters had no visibility of the status of their requests and, at busy times, risk analysts struggled to meet deadlines.
Chaucer shortlisted three potential workflow solution providers and supplied them all with a brief outline of the process that it wanted to automate. “K2 stood out clearly from the other vendors as the K2 consultants came to the meeting and showed us our process already created in K2 blackpearl,” recalls Mark Cooper, Head of Exposure Management Services at Chaucer. “This gave us confidence in the solution.”
Over a period of several weeks, Chaucer then worked with K2 to extend and improve the solution in an iterative process, at a pace that suited the business. “The consultants were patient and flexible when we suggested different ways of doing things,” Cooper says. “It was a very positive experience, and now we have a user-friendly process that works for my team of modelers and also works for the underwriters. For such a small IT project, it has delivered big benefits, quickly.”
The new K2 workflow has improved the efficiency of the Exposure Management Services team, as the five analysts now receive all of the information that they need from underwriters in one place and spend less time chasing up information and answering underwriters’ emails and calls about tasks. “I estimate that we save more than 50 hours per month across the department, which enables us to focus more time on delivering high quality reports that add value for the business,” says Cooper.
By providing a clearer overview of the number of analysis requests received and their due dates, the K2 process helps Chaucer’s risk analysts to prioritize jobs more effectively.
“If we don’t deliver risk analysis reports when they are needed, the underwriting process is delayed and this could result in lost premiums or even reputational damage,” says Cooper. “Since launching our K2 process, the number of reports that we deliver on schedule has increased from around 90% to 99%.”
The K2 process has also improved the transparency of Chaucer’s risk analysis request process. Underwriters working in four different time zones can now see at a glance who is working on their analysis request and what stage it has reached, which has improved their satisfaction with the overall service provided by Chaucer’s Exposure Management Services team.
Finally, the K2 platform provides Chaucer with regular reports on the analysis request process, showing managers how many requests the team has received and how quickly they were handled. This insight helps the business to ensure the team is properly resourced and expectations are realistic, particularly in busy policy renewal periods.