Improving Claims Analysis and Reporting in the Automobile Industry
The Client: Our client is a large automobile company, overseeing automotive styling, engineering, consumer and corporate financing, sales and marketing, distribution and manufacturing for its proprietary brand of vehicles throughout North America.
The Problem: Our client was manually completing much of their claims analysis and reporting, preventing them from being able to collaborate with dealers at the time of service, or to fully assess the nature of a claim before the service was complete. They needed a way to allow intervention in the Service Repair process in near real time during the course of a customer visit for repair. Their goal was to examine and evaluate repairs, looking for conditions that require the advice and/or oversight of their corporate resources to improve customer satisfaction and dealer collaboration.
Rulesware’s Approach: In April 2015, our client began working with Pega and Rulesware to tackle the claims problem. With Pega leading the solution design and the implementation, the team determined that the best way to reduce non-warrantable, improperly diagnosed and multiple repairs that lead to buy-backs would be to catch them up-front before the repair is completed. We began work on a new Front End Analytics + Alerts software solution designed to result in significant annual savings in warranty claims and a one-year payback.
The solution is designed to obtain Repair Order (RO) information from auto dealers while a customer is at the dealership on the service drive. It continually analyzes RO data, comparing it to historical claim data, and delivers alerts to head office and dealership personnel about how to proceed with the repair. This is a Rules-Driven System for automated pre-approvals to streamline and reduce the number of warranty claim requests that do not meet the appropriate claim criteria.
Rulesware has supported the Pega-led implementation in the requirements gathering, process design, and significantly contributed to the construction of the solution. Our aim was to deliver the solution in multiple slivers with staggered go-lives.
The project uses the Pega 7 Warranty Framework to develop a rules engine which will evaluate the incoming Repair Order against business rules and identify different scenarios and actions to be taken by the dealer and our client.
The Results: This rules-driven system will ultimately reduce the number of warranty claim requests that do not meet the appropriate claim criteria, resulting in significant annual savings to the client in warranty claims.
Among the highlights of the project include positive and high levels of collaboration among Pega, client and Rulesware teams, ultimately allowing us to deliver high-quality results to timelines. Our results showed minimal defects and were delivered with a consistent, 90%+ guardrail compliance. And the Rulesware team continues to flexibly support an extremely tight and complex project schedule, staying on track to deliver the projected Year 1 business value for our client.
Many of our El Salvador team members have also traveled to the US to provide on-site support, and to work directly with the Pega team and client during peak periods. We believe that this on-site collaboration has been valuable to both Pega and the client.
The Pega team has expressed their appreciation for the Rulesware team’s commitment to the project and flexibility to meet timelines. And our client has also shared their appreciation and thanks on a regular basis.
From one of the client project managers:
“I, personally, greatly appreciate all of you.” From another: “When we get this sliver in, it is a small sliver in the grand scheme but it is a huge testament to your diligence in a challenging environment that struggles with change.”