A very large insurer of General Liability and Property Damage insurance has an upward trend of increased
claims over the past 5 years.
The Risk Control Area for that company has just completed a 12 month Pilot of a new improved Risk Control
Site.
The purpose of the site is to help their customers manage their exposures and ideally prevent them from having
claims. There were 100 customers that were part of the Pilot that represented 25 different industries. The
business goals were to increase use of the site and provide tools to help customer awareness of their
exposures, so that they may reduce existing exposures and ultimately reduce claims.
The sites Features were as follows:
Improvements to the search engine to all customers to search for articles, tools and services on the site.
A checklist function that allow customer to create their own unique Checklists or utilize a sample provided by
ABC company to use daily, weekly etc for an area of their facility.
A promotion feature – where Risk preventing Articles, and tools on the site are marketed toward a customer.
A profile section allowing for Customer Name, Address and contact Phone number.
After the 12 months pilot, the business sponsor received an assessment of what was working and what was
not. The Assessment of the pilot revealed overall site activity had significantly increased, however only 5% of
the time the promotions were viewed. And the most shocking was that total claims increased by nearly 20% for
these 100 customers during the pilot period. The business sponsor was perplexed as he had an expectation of
reduced claims and at least for 30% viewing of promotions since the project team had spend a lot of careful
time and effort on this feature. A BA was assigned to do further analysis regarding the low use of the
promotions and why claims were not being reduced.
Regarding the use of promotion the BA looked into other similar companies to see what they did differently to
get their customer to look at their promotions. The BA found that similar companies had promotions that
targeted the industry the customer was in so it was more relevant to them and they were more interested to
view the promotion. In addition the BA sent out survey to all 100 pilot customers asking probing questions about
what they thought of the site and if they felt it had decreased their exposure to risk sufficiently. The Survey
responses came back with raving positive comments and providing examples of how the site had been helping
in the reduction of claims from the customer’s perspective. In addition the survey also revealed insight that the
customers found the promotion often irrelevant to their industry.
The BA asked for a dump of all documentation of the 100 claims that were filed over the 12 month pilot period.
The BA found the nearly 90% of the claim field were all in one region of the country and were all for property
damage related to several severe winter storms in the region and the claims were nearly all unavoidable by the
customers. The BA brought all this analysis back to the business sponsor and made the recommendation to
the business sponsor to require the customer to select 1 of 25 industries in their profile. This would in turn allow
for the ability to show industry specific promotions and promote search results relative to a customer’s industry
to be stored at the top giving the customer a more personalized experience.
What was the business sponsor looking to validate about the use of promotions?
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