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Application
Solutions
How
do you keep track of hundreds of sub-contractors insurance credentials
and paperwork on multiple projects that last for years at a time?
When Arthur J. Gallagher & Company (Gallagher), one of the largest
insurance brokerage firms in the United States, was faced with a
hardening insurance market and a need to grow the wrap-up segment
of its business, they concluded that the ad-hoc processes that were
currently in place would not support their desire to centralize
management of their wrap-up business and limit the growth of the
personnel and overhead expense required by those processes.
Insource Technology Corporation helped Gallagher design and build
a new enterprise wrap-up application that ultimately improved the
way the National Wrap-Up unit within Gallagher’s Brokerage Services
Division did business.
Client Profile
Arthur J. Gallagher & Company (NYSE: AJG), the fourth largest insurance
brokerage and risk management services firm in the United States,
plans, designs, and administers a full array of customized, cost-effective
property/casualty, risk management, and employee benefits programs.
Gallagher has operations in nine countries and does business in
more than 100 countries through a network of correspondent brokers
and consultants.
Business Requirements
Gallagher markets and administers a complex insurance offering known
as a wrap-up, a unique program through which an owner or general
contractor for a large construction project provides Workers Compensation
and/or General Liability to all participants on the project. The
National Wrap-Up Unit within Gallagher's Brokerage Services Division
designs wrap-up programs for their clients and then provides services
to administer these programs.
Although Gallagher had previously developed a custom, Web-based
application for wrap-up administration, this application suffered
from a number of basic design flaws and did not address many of
the wrap-up business requirements, resulting in very limited usage
and lack of acceptance by most of the regional offices, who continued
to use locally-developed, manually-intensive work processes based
on spreadsheets.
Gallagher undertook a study of their internal work processes involving
wrap-ups. This study recommended centralization of the wrap-up function
and development of a new enterprise application that would address
all aspects of the wrap-up business process. After interviewing
a number of development firms and hiring a National Director to
lead the centralized business unit, Gallagher selected Insource
Technology to design and build the enterprise wrap-up application.
The Insource Solution
A combined team of Gallagher personnel and Insource consultants
worked on a plan to meet Gallagher’s objectives. Dubbed CIPWORKS,
the new wrap-up application was divided into two phases:
- Phase 1 was the initial Analysis/Requirements phase of the project, during which the team defined the high-level specifications, data requirements, architecture, and development work plan for the enterprise wrap-up application.
- Phase 2 was the Technical Design phase, during which the detailed design specifications, physical data model, technical architecture, and a visual prototype were produced. The new wrap-up application was then built, tested, and deployed to production as scheduled.
The end result was that Gallagher had an application that could manage and administer
all aspects of its wrap-up business.
Benefits
The design and implementation of CIPWORKS provided the following benefits
to Gallagher:
- Increased wrap-up revenues by enhancing the value Gallagher's
service offerings to its clients;
- Reduced administrative expenses per dollar generated
- Significantly reduced time spent capturing and recording information, eliminating redundant data entry;
- Standardized processes for managing wrap-ups;
- Enabled better validation and tracking of data received from contractors;
- Enabled centralized management and oversight of national wrap-up operations; and
- Improved coordination of account management between Gallagher branches.
Based largely on capabilities provided by CIPWORKS, Gallagher expected to double
the revenue of its Wrap-Up unit over the next year and to grow its
revenue by a factor of four during the next three years.
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