Every large company understands the benefits of clean, consolidated and unified client data (both in customer relations and within the framework of internal processes). With the introduction of the new European GDPR legislation (in effect since 25 May 2018), the need to consolidate customer data, to trace it back through all corporate systems and, eventually, erase it, has become even greater. Knowing all this, Kooperativa has focused its energies in this area, working closely with Adastra and Deloitte. On the technological side, it relies on solutions provided by Ataccama.
The problem we had to face
Kooperativa has been established on the Czech market for 27 years, offering a full range of insurance services for private individuals as well as clients from small businesses and large corporations. In the year 2005, the company also acquired Česka podnikatelská pojišťovna. Currently, Kooperativa takes care of 2.04 million clients and itself is part of the Vienna Insurance Group (VIG), one of the leading insurance groups in Central and Eastern Europe. Altogether, the Group comprises around 50 companies in 25 countries.
With a growing number of clients and insurance contracts, and with the corresponding growth in volumes of data, individual Kooperativa departments became increasingly aware of the need for “clean data”. The impact of the lack of consolidated and unified data was most felt by the Security department, which opened a tender and subsequently became the business owner of a pilot project for a data quality solution. Analysis carried out by Deloitte and input provided by Adastra revealed that it was not simply a case of improving data quality but rather of a comprehensive Master Data Management project. Kooperativa’s representatives agreed with this assessment and decided to realize the fuller data management project.
Deloitte and Adastra convinced Kooperativa of need for Master Data Management.
Our suggested solution
Adastra and Deloitte first defined and standardized terminology for data cleaning, unification, mastering, and reference data, as well as Master/Gold records. Based on sophisticated logic, Adastra then constructed the rules for mastering and cleaning the data above these individual solutions.
The project unifies five entities (individual, address, vehicle, bank account, telephone number), using data drawn both from the insurance company’s internal systems and from external databases used in insurance for data enrichment.
Based on its knowledge of Kooperativa’s IT architecture and systems, Adastra proposed Ataccama MDC be used for the data mastering. Kooperativa agreed and implemented this Czech technological solution. Two key factors played a role in the choice of this tool:
- A custom licensing system
- The availability of local support (communication in Czech and a nearby office)
Kooperativa’s Security department has been the first in the insurance company to use the unified data. The data enters the Adastra Fraud Management System (AFMS), already implemented at Kooperativa by Adastra, which identifies non-standard, high-risk entries that could potentially be fraudulent.
When a Kooperativa team of specialists checked over 1600 suspicious incidents in 2016, it found 1015 instances of attempted insurance fraud (source: https://www.novinky.cz/…istovny.html).
What was the outcome of the project
Thanks to this project, Kooperativa has gained:
- More accurate information for Fraud Management, based on clean data
- Visualizations of the links between individual entities
- A single client data source for the whole company – 5 unified entities that can be used by other internal applications
- A single repository for data quality rules
- A data quality assurance tool
- The foundations for a GDPR compliance solution
Kooperativa is now better able to pinpoint suspicious behavior effectively, and can thus more accurately identify individuals and businesses engaging in fraud. Consequently, this has led to an improvement in Kooperativa’s bottom line, as illegitimate insurance payouts are substantially reduced. In the year 2016, these savings amounted to 183 million CZK.
Kooperativa saved a total of 183 million CZK in denied payouts in 2016, thanks to the detection and confirmation of fraudulent insurance claims (source: https://www.novinky.cz/…istovny.html).
Since the Ataccama MDC technology solution was implemented in the system for processing data for analysis, the number of false reports of suspicious claims has been greatly reduced. Thanks to this, the analytical team working with that data is now able to deal with suspicious events in much more detail, thereby increasing their success in confirming fraudulent claims.
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