KIT Finance of Flextera

From Pavel Seleznyov's interview: Direct insurance requires automation of all business processes (Banker.Py):

- What does the essence of the KEITH-direkt project consist in? What does it differ from classical approach in?

- KEITH-direkt is remote service of all retail clients of KIT Finance Insurance company via the Internet and contact center. Clients do not need to come to office for execution of the policy, they can make it remotely.

- Tell what led to initiation of the KEITH-direkt project?

- The market of insurance services develops promptly, competitive struggle strong, the service level of clients constantly increases. Something new was necessary, the innovation, modern, technological.

- About what modern technologies there is a speech?

- The contact center is a major instrument of active sales and providing service. From that, how effectively it works, success of business directly depends. It is the most important that each client was considered, qualitatively serviced and from first minutes of communication felt support.

- Earlier some insurers competed with dumping help, some – using a territorial scope branches, some – using the increased service quality. It turns out, competition time through new technologies came now?

- Considering the very high density of the market, it is possible to receive the client, having only offered it something strikingly different from proposals of competitors. In case of direct of insurance it is low prices, very easy method of purchase and the high level of service.

- How difficult in terms of IT infrastructure to organize such technological contact center?

- In terms of technologies, our contact center is integrated with all systems of KIT Finance Insurance company that gives to operators the chance quickly to obtain information for the best customer service. It was initially clear that for implementation of such approach the reliable platform is necessary. Not only and not just the universal solution consisting of some quantity of ready components, and the platform of development, the designer on whom it is possible to construct the product under own requirements.

- And on what you stopped?

- We selected the FLEXTERA platform from Diasoft company.

- Why?.

- It was important to us to select such solution which would allow to design the business processes, interactive forms and to unroll them in SOA architecture. That further it was possible to accompany the solution with a minimum of costs for programming.

We understood that we need completely individual solution, to be exact base on the basis of which we will be able to construct that it is necessary for us. direct insurance – a new type of activity for insurance companies in Russia. So universal ready-made solutions do not exist.

- What did pay to attention when selected the supplier?

- On reliability, on specific implementations, withdrawals of the companies which already use this product. Also there was a wish that a number of standard functionality, such as management of powers of users, support of strict regulations of processing, high level of security, etc. was considered.

And as the major question which faced us it is possible to call solution performance and its capabilities to be scaled together with growth of volume of business. It was very relevant for us as potential audience of the direct-company – the whole country. And in FLEXTERA this issue is resolved exclusively well – the same system suits both the small companies, and monsters of business.

Besides, when choosing Diasoft there is an opportunity if necessary to connect experienced specialists of this company that they helped to solve any problem. In addition, we aimed to reduce as much as possible costs for maintenance and development of the platform.

In principle, our insurance company received that she wanted, and now we accompany the platform by own efforts. We receive maintenance from Diasoft only of a system core.

- When did transition to own maintenance happen?

- Considering that we used only a core of FLEXTERA, and all customization at the first stage was made by forces of external contractors, within the first three months after start we used their maintenance services, in parallel training the specialists.

- What advantages, in your opinion, are received by clients?

- Clients first of all receive convenience: it is possible to come via the Internet into a personal account and to independently undergo all process, without leaving the house — to create quotation on the machine, to issue the agreement and even to pay it with the plastic card that is important – through the protected provider of electronic payments. In case of need to the client in convenient time and the place the specialist who performs survey leaves and delivers the original of the policy.

The cost specified in quotation is final, i.e. the insurer undertakes to sell the policy at this price for the specified car. Also there is an opportunity to vary the price, connecting and disconnecting different options. The quotation has validity period two weeks that time for considering leaves to the client.

Intermediaries levy rather big commission charges for sale of insurance policies – from 20 to 30%. If to exclude from interaction of the intermediary, the cost of insurance falls significantly.

- The policies purchased within direct insurance really, as a rule, are cheaper. And what is received, in turn, by insurers what advantages?

- First, it allows to reduce costs. As almost all communication with the client – remote. There is no need to contain an extensive network of sales offices. The uniform call center services all regions of presence of the company.

Secondly, it is the maximum automation of all processes of service, since sale and execution of the policy, before introduction in it of changes and processing of insured events in the "24 hours a day 7 days a week" mode.

- It is already possible to speak about project deliverables? The service of direct insurance is in demand?

- Sales within the project are already made within two years, and volumes constantly increase.

In spite of the fact that we were started in the heat of crisis in September, 2008, we managed to implement the delivered sales plan. In 2009 the sales volume of direct was already 35% of all sales to the company, in 2010 height about 15% relatively is noted 2009.

- What plans for development?

- Now in addition to improvement current and adding of new services the B2B-car system constructed based on direct technologies actively develops. A B2B-system is intended not only for work in it of intermediaries, but provides services and to our partner banks.

The next year there are rather big development plans for this system.

- In fact, only several insurance companies specialize in direct insurance. Whether it is difficult for new player to enter the market?

- The insurance of the company existing in the direct market already reached a certain level, according to new participants for entry into this market it is necessary to upgrade (to build) the infrastructure according to the current level of competitors that it is not so simple. But, considering already available wealth of experience at the western companies, it is simpler to them to enter the Russian market, than to domestic classical insurance companies to open direct the direction.

- What recommendations can you make to those companies which are going "go on-line"?

- It is very attentive to consider all technology and business aspects when choosing the platform for creation of a system of direct insurance.