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Allstate Engineering

To protect people from life's uncertainties through innovative technology platforms that deliver personalized protection solutions

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To protect people from life's uncertainties through innovative technology platforms that deliver personalized protection solutions

Strengths

  • BRAND: Strong trusted brand with 91-year history in insurance
  • SCALE: Serves 16M+ households across auto, home, and life
  • INFRASTRUCTURE: Robust cloud-based technology infrastructure
  • DATA: Massive proprietary customer and risk assessment data
  • DISTRIBUTION: Omnichannel distribution with 11,000+ agents

Weaknesses

  • LEGACY: Technical debt from legacy systems slowing innovation
  • INTEGRATION: Siloed technology stacks across product lines
  • TALENT: Gaps in specialized AI and data science expertise
  • ADOPTION: Slow digital adoption among traditional customers
  • AGILITY: Complex governance limiting engineering velocity

Opportunities

  • TELEMATICS: Expand usage-based insurance with IoT/telematics
  • PERSONALIZATION: Hyper-personalize products using ML/AI
  • ECOSYSTEM: Build integrated protection ecosystem beyond insurance
  • AUTOMATION: Increase claims automation with computer vision
  • EMBEDDED: Develop APIs for embedded insurance partnerships

Threats

  • COMPETITION: InsurTech startups disrupting with digital-first UX
  • TECH-GIANTS: Entry of Amazon, Google into insurance markets
  • REGULATIONS: Evolving data privacy regulations limiting use cases
  • SECURITY: Increasing sophistication of cyber threats and attacks
  • RETENTION: Customer churn to digitally native competitors

Key Priorities

  • MODERNIZE: Accelerate legacy system modernization initiative
  • DATA-PLATFORM: Build unified customer data platform across lines
  • DIGITAL-EXPERIENCE: Enhance mobile/web platforms for seamless UX
  • AUTOMATION: Scale AI-powered automated claims processing
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To protect people from life's uncertainties through innovative technology platforms that deliver personalized protection solutions

MODERNIZE CORE

Transform legacy systems into flexible cloud platforms

  • MIGRATION: Complete migration of 70% of core applications to cloud by Q3
  • ARCHITECTURE: Implement API-first architecture with 95% coverage of core services
  • DECOMMISSION: Retire 40 legacy systems reducing tech debt by $22M annually
  • PERFORMANCE: Reduce transaction processing times by 65% across all platforms
UNIFY DATA

Create single source of truth for all customer data

  • PLATFORM: Launch unified customer data platform connecting all product lines by Q2
  • QUALITY: Achieve 95%+ data quality score for critical customer attributes
  • GOVERNANCE: Implement automated data governance and compliance monitoring
  • ANALYTICS: Enable self-service analytics for 2000+ business users with training
ELEVATE DIGITAL

Deliver industry-leading digital customer experiences

  • MOBILE: Rebuild mobile app with 99% feature parity and 35% improved performance
  • PERSONALIZATION: Implement ML-driven personalization across 80% of digital touchpoints
  • ONBOARDING: Reduce digital policy purchase journey from 35 to 12 minutes
  • ENGAGEMENT: Increase digital engagement by 40% measured by MAU/DAU metrics
SCALE AI

Transform core operations with AI-powered automation

  • CLAIMS: Expand AI-powered claims processing to handle 60% of eligible claims
  • COMPUTER-VISION: Deploy property damage assessment CV system with 92%+ accuracy
  • CHATBOTS: Launch GenAI customer service bots with 85% successful resolution rate
  • UNDERWRITING: Implement AI risk models reducing manual underwriting by 50%
METRICS
  • Digital customer engagement rate: 80%
  • Cloud migration: 70% of applications
  • AI-processed claims: 60% of eligible volume
VALUES
  • Integrity
  • Inclusive Diversity
  • Customer-Focused Innovation
  • Operational Excellence
  • Data-Driven Decision Making
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Align the learnings

Allstate Engineering Retrospective

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To protect people from life's uncertainties through innovative technology platforms that deliver personalized protection solutions

What Went Well

  • GROWTH: Property-liability premium growth increased 11.3% YoY to $13B+
  • DIGITAL: Digital quote submissions increased 23% across all channels
  • CLAIMS: Allstate Protection Plans grew 19% with improved loss ratios
  • RETENTION: Auto insurance policy renewal ratio improved to 89% vs 87%
  • INFRASTRUCTURE: Successful migration of 35% of apps to cloud platform

Not So Well

  • PROFITABILITY: Combined ratio at 95.6%, above target range of 92-94%
  • COSTS: Technology operating costs increased 7.2%, exceeding budget
  • ADOPTION: Mobile app active users grew only 9% against 15% target
  • INTEGRATION: National General integration faced technology challenges
  • INNOVATION: New digital product launches delayed by technical issues

Learnings

  • ALIGNMENT: Need stronger tech-business alignment for faster delivery
  • ARCHITECTURE: Microservices approach proving effective for new builds
  • DATA: Customer data platform shows 3x ROI on marketing spend when used
  • AGILE: Teams using agile methodologies ship 2.5x faster than others
  • TESTING: Automated testing reduces defect rate by 43% in production

Action Items

  • PLATFORM: Accelerate migration from legacy to cloud-native platform
  • UNIFICATION: Consolidate customer data across product lines by EOY
  • AUTOMATION: Scale AI claims processing to handle 60% of eligible claims
  • TALENT: Launch engineering excellence program to upskill 2000+ devs
  • API: Build robust API gateway for third-party integration capabilities
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To protect people from life's uncertainties through innovative technology platforms that deliver personalized protection solutions

Strengths

  • FOUNDATION: Early investments in data science foundations
  • PREDICTION: Strong risk modeling and predictive analytics
  • AUTOMATION: Successful pilots in claims automation using AI
  • PARTNERSHIPS: Strategic partnerships with AI technology vendors
  • INFRASTRUCTURE: Scalable cloud infrastructure to support AI

Weaknesses

  • FRAGMENTATION: Siloed AI initiatives across business units
  • TALENT: Shortage of AI/ML engineering specialists
  • GOVERNANCE: Immature AI governance and ethics framework
  • DATA-QUALITY: Inconsistent data quality limiting AI potential
  • ADOPTION: Slow organization-wide AI adoption and literacy

Opportunities

  • GENERATIVE: Leverage GenAI for customer service and claims
  • COMPUTER-VISION: Scale damage assessment automation with CV
  • PERSONALIZATION: Implement AI-driven personalized pricing
  • PREVENTION: Develop predictive risk models for loss prevention
  • LLM: Deploy internal LLMs for knowledge management and support

Threats

  • COMPETITION: InsurTechs deploying advanced AI capabilities faster
  • BIAS: Regulatory scrutiny on AI fairness and bias
  • SECURITY: AI-powered cyber threats targeting insurance data
  • EXPLAINABILITY: Growing demands for AI transparency
  • COMPLIANCE: Evolving AI regulations requiring system changes

Key Priorities

  • PLATFORM: Build unified AI/ML platform for cross-company use
  • TALENT: Accelerate AI engineering talent acquisition strategy
  • GOVERNANCE: Establish robust AI ethics and governance framework
  • CLAIMS-AI: Scale computer vision for automated claims processing