Long-term care insurance (LTCi) is a niche section of the insurance industry. While increasingly more of the aging population is requiring long-term care (LTC) services, sales of LTCi continues to decrease and the industry is continuing to shrink and become highly concentrated. However, there are some companies that are still in an ideal position to acquire other blocks of business. A company that acquires additional LTCi blocks must have adequate capital. Equally as important, they must have resources and technology in place to manage the new business. Fuzion has developed client trust in this capability, enabling our client to acquire another closed block of long-term care business.
System and data conversion in an LTCi block acquisition can be very complex. To ensure a smooth conversion, Fuzion performed several key tasks requiring a substantial collaborative, cross-functional effort to assess policy and claim information. It was vital these key tasks be completed effectively and comprehensively to onboard the policyholder data and prepare Fuzion to seamlessly manage this newly attained block. When converting policyholder information from one system to the next, there is always a possibility of issues arising. Fuzion’s Operations team is skilled at preemptively testing for a variety scenario both before and after the conversion. Pre-conversion testing is a critical part of a successful conversion. Operations team members focused on fundamental issues, as well as details such as addresses being spelled correctly to converting claim history into a decipherable way so that future claims could be paid successfully. The technology behind the conversion is key and it needs team members with the appropriate set of expertise to match the policyholder and claims administration processes with the technology.
Fuzion’s IT team also played a crucial role in this conversion. The team’s experience from past conversion projects allowed this project to run smoothly. The team knew the right questions to ask and how to get the data quickly into the systems. During the data conversion, IT was heavily involved in quality testing. The IT team created all the test scenarios, both from a functional and data perspective. IT validated that the files loaded correctly and performed initial validation within the data warehouse. A high level of coordination with different business units was required to ensure the data was formatted correctly for all downstream applications.
This conversion was a great success due to an enormous team effort and constant communication between all involved departments. Fuzion started the data conversion project in September of 2016 and completed the data conversion in less than a year by July of 2017; an outstanding achievement for a data conversion of this size. The procedures in place for data conversion after acquiring a new block of business remains a core capability and continues to be tested and improved upon as Fuzion onboards new blocks into its existing systems and processes.