Growing Up and Out

Court and his 13-member IT team plan to replace First American P&C's existing customer representative interface to its AS/400-based Fiserv system with a dashboard-type presentation layer that leverages XML. The intranet-accessible information also will be made available to agents, who can populate the data into their internal proprietary agency applications for 24x7 access-as opposed to the 20-hour-a-day access granted through use of the agent site. Court reports that the carrier's technology partner KBA Solutions is helping with the project, which First American hopes to complete sometime later this year.

Regulatory Challenges

But as the carrier's increased value proposition spawns an expansion of its business, First American P&C is finding itself exposed to a whole host of new challenges. Court concedes that one of the drawbacks of growth is having to deal with regulatory challenges.

"As we grow larger and into more states, there are more regulations," he explains. "We have to beef up our reporting staff in order to do it." In an attempt to remedy the situation, the carrier is searching for tools that will allow it to create report templates for reuse each year. Additionally, Court is investigating technology training for creators of the reports. Unfortunately, he must dip into the carrier's $3 million technology budget in order to do so.

In an attempt to free up much-needed funds while increasing efficiency, First American P&C has undertaken a transition of its lienholder notifications and declaration pages from a paper-based to an electronic methodology. Prior to a new outsourcing arrangement with Xtria (Richardson, Texas), the carrier experienced time delays associated with printing and mailing hard copies of the documents to the major mortgage lenders with which the insurer has relationships. Court projects that the switch will save First American P&C $175,000 a year. "It's a daily data feed, batch-type operation," explains Court. Once the reports have been collected, "we receive confirmation that mortgage lenders have received them."

With projects such as this one, First American P&C tries to ensure that it's as financially lean in its operations as possible, through work done with its strategic partners. "We work with a very small number of vendors and consultants," explains Court. "We form partnerships with a few key vendors that have common business interests and share our views on four principles. They include integrity, honesty, expectations management and mutual respect. We are looking for providers of long-term solutions." The intiatives that the insurer has carried out with Fiserv and KBA Solutions are examples of these close relationships. "These strategic partners bring a tremendous amount of value and that is the key determinant in developing and maintaining relationships."

Decisions about which companies to bring into the insurer's inner circle are made during First American P&C's frequent IT steering committee meetings. Court chairs the committee, which comprises all of the members of the carrier's executive team. Major purchase decisions are made during these meetings, while technology project updates are presented during executive team meetings that take place quarterly and as needed.

Planning for Growth

Inevitably, frequent discussions in both forums center around planning for growth and preparing for the conditions once the market turns. "Having the ability to read changing market conditions is critically important as the soft market approaches," says Court. "We are building in the agility to make a rate change on short notice." This is made possible because First American P&C's policy administration system is extensively table-driven. According to Court, that makes most rate changes a configuration issue instead of a programming issue.

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