ROI after just 6 months
For 100% claims processing
The California Insurance Guarantee Association (CIGA) provides consumer protection to the residents of California by covering the claims responsibilities of insolvent insurance companies.
CIGA is not a typical commercial enterprise.
“We’re not in the business of growing our market share or developing new products,” says Feroz Merchhiya, Chief Technology Officer and Director of Technology at CIGA.
The company’s corporate charter is to provide protection to the residents of California by taking over an insurer’s claims responsibilities in the event of insolvency.
CIGA must be able to handle an insolvent insurer’s covered claims within 45 days of being notified of the insolvency, making it critical that CIGA remain vigilant at all times.
“An insurance company’s insolvency is a multi-dimensional, complex process that doesn’t have any leading indicators,” says Merchhiya. “When such events happen, our job is to take the data that’s coming from an organization that no longer exists—where we don’t know the source, origin, or the nuances of the data—and turn it into viable information that we can bring into our system to start processing the customer’s claims.”
The following were key challenges they needed to overcome:
- Between 2004 and 2011, CIGA’s annual claims payouts grew from $50M to nearly $300M per year, creating a deluge of claims data. The highly complex process of collecting, validating, and cleansing data from multiple sources in different formats put the company at risk of being unable to correctly pay out claims in a timely manner.
- Up to 75% of CIGA’s database administrators’ (DBAs) time was consumed performing database refreshes, limiting their ability to support other strategic business priorities such as data warehousing and business reporting.
- The amount of time that Guidewire development teams and claims analysts spent waiting for their environments was no longer sustainable.
- Because of the rapid influx of data from multiple sources, the cost of hosting data in physical environments was becoming prohibitive.
- Complying with data privacy regulations by manually protecting policyholder information in dev/test and analysis environments further delayed data.
- Due to environment limitations and limited capabilities to work on projects in parallel during insolvency events, routine system maintenance and upgrades often fell behind.
To support its growing data needs without incurring more hardware, personnel and software costs, CIGA needed to find a solution to make IT processes more scalable and efficient.
CIGA chose Delphix to meet its business imperative to become faster and more reliable in processing claims using Guidewire ClaimCenter. CIGA now uses Delphix as a strategic data management platform across its enterprise to support a host of critical business applications, including not only its core claims management systems, but also its content management, imaging, and business intelligence systems.
Delphix provides a faster, more flexible way for CIGA to manage its data, which has enabled the following outcomes:
- Reduced the workload burden on the operations team by replacing existing data extraction and management processes with Delphix, which remains in constant synchronization with all sources and automatically provisions data to any point in time. Instead of spending 75% of their time on manual data management tasks, DBAs now spend just 15% of their time responding to development requests and devote the rest of their time to strategic IT projects.
- Improved productivity by allowing developers to perform data management tasks on their own, via self-service, to meet their specific needs. As a result, CIGA has dramatically reduced wait times by streamlining interactions between development and operations teams.
- Now automatically masking policyholder data in non-production environments in compliance with data privacy regulations.
- Lowered data storage requirements and gained the ability to elastically expand environments as needed. Using Delphix has made it possible for CIGA to reduce storage from 12 terabytes to just two terabytes, freeing up capacity for other projects.