Enhancing Auto Statistics

Insurance Bureau of Canada (IBC) on Jan. 7 of this year launched its new Automobile Statistical Plan (ASP) data collection and processing system. In doing so, IBC also completed a major IT infrastructure upgrade that will significantly improve the organization’s ability to meet the data needs of the industry and of industry regulators across the country. IBC uses the ASP to collect statistical data related to the auto insurance experience of licensed insurers.

Collected data is reported to the General Insurance Statistical Agency (GISA), a statistical agency appointed by regulatory authorities to collect the experience of licensed insurers.

The IT renewal project met a very ambitious timeline to deliver the ASP, and the infrastructure upgrade now has IBC well positioned to meet the data needs of the industry for years to come. A new IT platform using industry-standard Microsoft technology for data collection, analysis and exhibit production will eventually deliver a number of key benefits, including the following:

• the turnaround time for the production and delivery of statistical exhibits will be cut dramatically;

• data analysis to support industry issues will be available live; and

• subsequent changes to the ASP to support new data-reporting requirements will be completed sooner and at a reduced cost to the industry. This technological makeover will drastically improve IBC’s overall ability

to collect and use industry data. Of course, there are also some secondary benefits of a wholesale technological upgrade. For instance, enhancements to IBC’s IT environment will most certainly have a positive effect on other IBC products and services.

PRE-ASP

This renewal project was precipitated in 2005 by a backlog of ASP changes that would have been very time-consuming and costly to make in IBC’s existing IT environment. IBC management knew clearing the backlog would be a challenge, but saw the task as an opportunity to modernize IBC’s systems.

Prior to its IT renewal, IBC had been using a variety of proprietary, unsupported technologies. These technologies required specialized skills and expertise for support and maintenance; this presented an unacceptable business risk. The plan with IT renewal was to implement a whole new IT platform that conformed to industry standards and provided the flexibility needed to keep up with rapidly changing demands for data, both from regulators and from within IBC.

Project implementation faced a few roadblocks. In April 2006, when GISA became the statistical agency for insurance regulators, this created an additional challenge for IBC. The role of statistical agency had previously been filled by IBC. When GISA was created, IBC’s relationship as a subcontractor to the new agency brought an additional level of oversight to the project. Delays related to the creation of GISA put the IT renewal project two months behind schedule and jeopardized the January 2008 launch date.

DELIVERING THE GOODS

The fact that Phase 1 of the project was delivered on time and under budget is a testament to the hard work and dedication of the staff at IBC and GISA, but insurers also played a big role. The January launch followed a successful three-month, all-industry test phase. During this test phase, 97% of insurers tested their own system modifications that were required to accommodate the mandated ASP changes. The test phase was an essential part of the project, and insurers demonstrated their characteristic diligence in helping to ensure that the January launch date was met. For its part, IBC handled more than 2,000 insurer inquiries during testing; no major problems were reported during this time.

The launch of the new data collection system is the first major deliverable of the IT renewal project. Subsequent phases involving the development and deployment of the new ASP exhibit production and analytical environment are already underway.

The IT renewal project is a model of how to balance IBC’s contractual requirements and regulatory obligations with the various other data needs of the industry. The new ASP was a challenge for the industry. However, as with most challenges, it also presented a tremendous opportunity.