Case Study

Survival of the Fittest a Factor in Claims System Selection

When Benefit Trust Life Insurance Company needed a new group claims system in 1985, "There were three major players in the market," recalled Dave Backe. "We wanted to be sure the one we selected would be around for many years."

"As it turned out, we chose Erisco and its ClaimFacts system. Of the three we considered, it was the only company to survive." Mr. Backe noted that Erisco's having the financial resources of Dun & Bradstreet behind it clearly boosted its stock against its competitors.

As assistant vice president of group benefits with Benefit Trust, Mr. Backe is responsible for setting the criteria for all systems purchases. Headquartered in Lake Forest, Ill., Benefit Trust is a group health carrier that markets primarily to the 10 to 250-life market.

According to Mr. Backe, purchasing a system like ClaimFacts is a highly strategic decision for a company like his. "We live or die by the success of our systems vendors," he asserted. "All our clients want is fast, accurate claims. They don't care how we do it." But Mr. Backe does. Which is why he chose Erisco.

ClaimFacts' Adaptability Helps Benefit Trust Keep Pace

Benefit Trust was also impressed with Erisco's approach to developing and installing the system. "Erisco's philosophy was to establish a base system that would meet the needs of the group first. They felt the group's needs were greater than any one individual's," Mr. Backe explained. "So no one factor was allowed to override the overall need."

Seven years later, according to Mr. Backe, it's paid off. "ClaimFacts has kept pace with our needs. We haven't had to invest millions in keeping the system up-to-date." Indeed, Benefit Trust has managed to use the system in ways no other Erisco client has, at least as far as anyone knows.

He explains: "We have a packaged [group health] product with hundreds of options or variations, including state mandates. What we've done is to take data from the underwriting system and automatically code it to create a custom selling package in 10 minutes. That shows me the system is reliable enough to define relationships between records and have it all fit safely without the data crashing into one another."

Relationships Make the Difference

"One thing that has impressed us in working with Erisco over the years is the personal nature of our relationship," said Mr. Backe. "I know if I have a problem, I can call virtually anyone in the company, from the president on down, and explain what I need. I don't call in those markers often, but at least I know I can have any problem dealt with on short notice."

He also admires the way Erisco's technical support people try to understand the business need behind every question or problem. "They not only want to understand your need from a technical standpoint, but often ask, 'Why would want to do something like that?'," he said.

"Once they understand the need," Mr. Backe continued, "they can tell me which doors to open in the system and which ones to avoid. Whether it's a work-around problem or some custom programming on the side, I don't think I've ever heard anyone at Erisco say they couldn't do something."

Benefits Beyond Day-to-Day

Mr. Backe has been an active member of Erisco's User Board and also chaired the System Enhancement Committee. Both groups were established to help Erisco meet the evolving needs of its clients. "I think one of Erisco's strengths is the User Board and its annual conference of 135 companies," he observed.

As for the future, Mr. Backe's people are installing a new subsystem to ClaimFacts. He thinks they'll be able to handle most of the work in-house. After seven years of working on the system, they've become pretty independent. Still, when Benefits Trust does need the support of Erisco, they know help is just a phone call away. And that's just the way Dave Backe likes it.