AIG: One Global Claims Process Specialized by Country
The layer cake is the backbone of our strategy – how we think of building our systems.
The Business Issue
AIG insures risk around the world, selling more than 90 types of insurance products in over 100 countries, in 400 offices, and 40 languages. AIG had a big global presence, but lacked scale. As Eric Martinez explains, it’s hard to get scale when each country wants to do its own thing.
AIG had silos – 91 to be exact – and no common backbone. The company set out to simplify its systems, taking the complexity out and bringing more responsiveness in, while allowing the products to remain as “local” as possible to each country.
The first Pega-based system that AIG built and launched was the layer cake OneClaim™ system. On top of the Pega backbone, there are 3 critical components:
- A global layer
- A regional layer (specific to the area)
- A country layer (specific language, regulations) – governance must be tighter here
The OneClaim™ system has been successfully rolled out onto three continents and now AIG is building even more systems on the same Pega backbone, using the layer cake concept.
- Improved combined ratio
- Improved outcomes for all lines of business
- 20-30% reduction in cycle times for higher frequency claims
- Straight-through processing for high frequency, low complexity claims
- One global system that meets local requirements