Delphi Technology Inc. Delivers a Modern P/C Insurance Solution Across the Board
How so? Well, it's because the Boston-based company delivers its multipronged technology solutions using a single-source code for all of its clients. In essence, a positive change for one is a positive change for all. And, according to Sam Fang, Delphi Technology's CEO and founder, it's a strategy that is starting to really have an impact on the company's growth as it expands from the medical professional liability space, where it commands an impressive 40 percent market share, to new markets.
"We started in the medical professional liability space, and we've carved out a very well-defined niche for ourselves," says Fang, who listed nonmedical professional liability and reinsurance as new potential markets. "We offer an end-to-end solution, but even more importantly, our approach is based on a strong partnership with our clients. We have a very strong user base that provides input into planned software enhancements.
"The way we architect our product line, every enhancement is shared across our entire client base," he adds.
Today, Delphi Technology delivers a comprehensive range of technology solutions to property/casualty insurers, third-party administrators, self-insureds and risk retention groups. Delphi Technology's software applications run core insurance operations, including underwriting, billing, policy administration, claims management, financial management, risk assessment and reinsurance.
"Our product line does not offer 'plain vanilla' P/C solutions," Fang says. "Plus, we are able to price our products so that everyone from startups to our largest customer can use our full-blown system affordably."
Fang won't get an argument from his customers, especially a member-owned insurance company providing insurance protection for physicians, hospitals, dentists, medical groups, professional associations and other healthcare professionals.
Nearly five years ago, this Midwest insurer was using a claims and policy management system that had been developed in-house in the early 1990s. It was not just outdated, but also lacked the additional capabilities the insurer needed to effectively manage its growing business. In order to grow its business and improve productivity, its legacy system would need to go.
At first, they believed Delphi Technology's OASIS solution would be too expensive, but the insurer was pleasantly surprised by the final price quote.
"Delphi Technology did an outstanding job of presenting and demonstrating the OASIS product, but what sealed the deal was Sam Fang personally meeting with us to address any reservations that we might have had," says their chief information officer.
In addition to being the first Delphi Technology client to go live with OASIS Document Solution, they were also the first to do a full data conversion of both policy and claims data.
On the renewals front alone, the insurer had been enduring a manual process requiring extensive time and effort on the part of their underwriters. But since installing OASIS, 2006 was the best year for the company relative to renewals, and the improvement was largely attributed to the OASIS implementation. Even though there was in increase in the number of policies processed, the renewal process took less time and effort and required no underwriter overtime.
For claims, implementing OASIS meant tighter controls and extensive automation, reducing the risk of errors. Coverage verification was cited as a particularly beneficial feature to help protect against human error and improper payment of claims.
"OASIS gives us the confidence that we are paying the right claims and the right amounts. In addition, the systems saves us so much time in the claims process that we have time to do other things that we couldn't ever get to previously," says one of the company's business analysts.
The situation is much the same at another client insurer, which provides medical professional liability, property/casualty insurance, and a range of technology and human resources products and services to physicians, clinics and hospitals. The company had a systems environment in "shambles" in 1996. When their newly hired chief financial officer conducted a review of operations, he confirmed that there would be significant benefits to be gained by modernizing the company's technology environment.
Although Delphi's OASIS system was still not fully developed at the time, the insurer liked what they saw, put their faith in Sam Fang, and took "a leap of faith with Delphi Technology." Their faith was quickly rewarded.
"We purchased in August and were issuing bills with OASIS by December. That's pretty incredible," says their CFO.
As its use of the OASIS system increased, the product line itself was maturing, with new functionality being added on an ongoing basis, further solidifying the strong partnership between the customer and Delphi Technology. This partnership served the insurer well in 2001, when St. Paul Fire and Marine chose to move out of the medical-malpractice market, leaving it well-positioned with its expertise and technologies to seize the additional opportunity, doubling its size in just 18 months--with no need to hire additional staff.
The insurer has continued along its growth path, growing to $90 million in 2002, still with no need to increase staff to process business. Staff has been added over the past three years to expand its presence in the Midwest and to take better advantage of the ties and loyalties of agents in the region. In early 2006, doctor policyholders were offered the option to pay online and set up recurring payments.
"OASIS has made us incredibly efficient," explains their CFO. "We are considered a leader in the med-mal market in large part due to our Delphi Technology relationship,"
"With our evolving, innovative, Web-based solutions, we can enter new markets with a better solution," says Delphi Technology's Fang. "And that's especially true in today's market, where many technology players are owned by large brokerage firms. We are one of the larger independent players still out there in the marketplace."
Fang adds that, more than anything else, what differentiates Delphi Technology from the competition is its business model.
"I can sense this from talks with our clients and others in the industry," he says. "With other companies, the customer gets a copy of the software, which is then customized, and they are stuck with it," he says, noting that once a client has gone live with OASIS, the company enjoys a 100 percent retention rate in terms of using the software, and a 95 percent renewal of annual maintenance and support.
"We literally offer applications that we can upgrade across all of our clients on an annual basis. Our competitors can't make that claim," he says. "When you buy from Delphi Technology, you are really guaranteeing success and a positive future."
piece is part of our continuing Insights series designed to highlight key products and services to our readers. This paid-for
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February 20, 2008
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