HDI Assicurazioni is Solvency II compliant and customer service focused with SAS®

"By your side, every day" is the HDI Assicurazioni slogan that sums up its customer-focused strategy. A part of the Talanx Group, a German-based European financial services firm, HDI offers business and personal insurance products through 400 Italian agencies and sub-agencies. The company chose SAS Risk Management for Insurance to improve data quality, make faster risk-based decisions and comply with Solvency II.

While some companies view Solvency II requirements as a bureaucratic necessity, HDI sees the rules as an opportunity to focus attention on its financial health and customer service-focused business.
 
"To compete successfully with large companies operating in Italy, we really bet on service quality and the ability to offer the customer solutions and products tailored to their individual needs," explains Francesco Massari, HDI's Head of Organization and Information Systems. "It's not just words. According to the official statistics of Italian consumer organization Consap, we are among the companies with the best performances in CARD claims settlement."

Rethinking processes and procedures
Solvency II is designed to protect consumers by more accurately assessing risks and requiring greater transparency. "It has a positive impact on the economic and financial soundness of the company, to the customer's benefit,'' Massari says. "It also offers an opportunity to extensively rethink the organizational processes and procedures related to risk management, improve the quality and uniqueness of the data, increase the effectiveness of the control systems and promote accountability towards the stakeholders. It's an opportunity, rather than a bureaucratic event."

HDI had an additional challenge in that it must meet separate Italian and German government insurance regulations, along with those of Solvency II. The switch to Solvency II and the need for double compliance thus offered the opportunity to upgrade to a management information system for complete, integrated and structured management of the risks associated with the product portfolio.

Choosing SAS
"SAS technology has been present for some time in the company,'' Massari says. "In collaboration with SAS, we have concentrated our efforts on redesigning the existing system according to the new requirements of Solvency II and the creation of a unique companywide data warehouse. It was done with the goal, on the one hand, to collect, standardize and consolidate all information relating to property-casualty business. On the other hand, the goal was to achieve, through the calculation engines available from SAS, a real-time decision support system, capable of offering business users, actuaries or senior management the tools needed to make decisions based on facts. In this context, the SAS Risk Management for Insurance solution offers us the necessary guarantees in terms of robustness, reliability and quality of the data and measurements produced."

SAS Risk Management for Insurance is a comprehensive solution for performing risk analysis and risk-based capital calculation for insurers. The solution enables insurers to implement the Solvency II standard model approach and is built on a robust data management and reporting platform that includes an insurance-specific data model. The solution performs more accurate risk analysis with comprehensive data management capabilities to improve data quality by eliminating or reducing data inconsistencies.

Data quality, a prerequisite for model efficiency
"The flexibility of SAS Risk Management for Insurance first made it possible to compress both the investment and deployment times, which were fully in line with the budgeted cost,'' Massari says. "Secondly, with the contribution of SAS analysts, we were able to detect during the construction certain problems related to the flow of extraction and management procedures and take the appropriate corrective actions. We have met the double objective of improving data quality and streamlining information processes."

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