Many of the Russia’s leading General Insurance companies, including several in the top ten measured by size, have worked with VitaSoft to improve their analytic and reporting capabilities. They include:
Alfa Insurance: AVICOS-AFES, a consolidated group of aviation insurance subsidiaries of Alfa Insurance, providing aviation insurance services throughout Russia and further afield, including the United Nations
GEFEST Insurance: Industrial risk specialists and a leading provider of insurance services on many State funded construction projects including the 2014 Winter Olympics
ROSSIA Group: One of Russia’s oldest insurance companies with over 120 years of history and 300 regional offices throughout the country
MSK Insurance: Top 10 Insurer offering the full spectrum of insurance products throughout the country
Ingosstrakh: Russia’s 2nd largest commercial insurer (ex-state owned); a leader in large industrial risks as well as a being a major player in the retail insurance sector.
Each company faced a familiar industry problem; multiple, individual and independent back office systems that failed to communicate with each other. Data was haphazard, often contradictory, and incapable of supporting single source reporting. The insurers required the ability to produce timely accurate information that supported business manager decision making without the need to run multiple analytical programmes on each and every system.
The common problem had a common solution; the creation of centralized data warehouses that bring together all relevant data sources into a single data centre. This in turn would enable data analysis for both business decision making as well as supporting the companies’ production of Insurance Regulatory reports. It had to be able to track all historical changes in accounting data, users must be able to independently create and maintain their own reports, there must be no restriction on the number of Client Back-office systems that act as data sources and the data must be capable of access through a web interface.
VitaSoft, with the support of the insurance company IT departments, built the required functionality using Microsoft Data Warehouse platforms; a Microsoft SQL Server 2012, and OLAP Microsoft Analysis Services 2012. Users obtained authorized access to the system via a JAVA web interface and Apache Tomcat was used as the application server.
The data warehouse sub layers, the individual data marts, were specific to each company but they shared common solutions. In particular:
Finance Data Mart: Capable of handling all types of insurance, including incoming and outgoing reinsurance, calculating insurance reserves, measuring accounts receivables and payables and the OLAP cube in turn enabled the analysis of technical results and formed the basis for the completion of numerous and frequent statutory reports.
Reinsurance Data Mart: Specific to incoming and outgoing reinsurance providing a greater level of analysis than that which is capable in the Finance Data Mart, for example, the specific characteristics of the reinsurance contract such as broker, date of cover, class of cover, accumulated risk and so on.
Compulsory Motor Third Party Liability Data Mart: Very specific to the needs of the Russian regulatory requirements and capable of quick alteration in line with those frequently changing requirements.
Document Control Data Mart: As with many other insurance markets, Russia has a long list of documents that must be controlled by the insurance company, for example, documents similar to the UK’s historical Cover Note, still issued on the spot in Russia by thousands of independent insurance agents. This data mart was designed to be able to track such documents by company, agent, sub agent, etc. including the number of spoiled documents over any given time period, number of outstanding blank documents, how many have been issued, reported lost and so on.
Motor Data Mart: Over 100 different data dimensions for detailed analysis of the motor portfolio enabling the motor underwriters to fully understand the key drivers to their motor loss ratio for all classes of motor insurance.
Policy Lifecycle Data Mart: Designed to analyse business processes related to insurance contracts, for example the time taken to conclude each stage of the policy process from cover note right through to policy documentation issue, policy number comparisons, error rates and error points, all of which enable the identification of weak points within the process and ultimately lead to a more streamlined system.
Claim Lifecycle Data Mart: Similar in concept to the policy data mart whilst also picking up those things specific to claims and which can help identify claims leakage and potential fraud
The VitaSoft individually created solutions all have modern web interfaces and a very wide range of user functionality. The high level of system customization enables insurance companies to create and manage numerous reports with ease, on their own, without the need for support from the Contractor. All companies are now able to meet their Statutory Reporting requirements and whilst the benefits of better data analysis is hard to quantify, all insurers agreed that their company performance has improved since the implementation of their data warehouses.