Duck Creek DMS – Phase 1 Comprehensive Notes

Session Logistics & Housekeeping

  • Team members present:
    • Puneet (trainer/presenter)
    • On-site US Pacific: Rajnish, Sandeep (joined later), plus new members Priti, Danish, Ishan
    • Established Phase-1/2 trainees who can help: Anubhav, Ravi Kumar, Ranjan, Sikander, Pradeep, Rahul
  • Meeting window chosen 9\text{:}00\,\text{–}\,12\text{:}00 EST to span IST ↔ PST
  • Daily recordings shared automatically by e-mail; watch if absent
  • 5-day boot-camp; pace can be increased on request
  • Tools / access
    • Duck Creek University self-study curriculum will be assigned (videos + PDFs)
    • Internal SharePoint (under construction); interim Google Drive / GitLab for decks
    • Training environments: legacy + latest DMS URLs with credentials
  • Deliverables for trainees (“Alpha Team”)
    • Internal user-guide/how-to docs (agent onboarding, license verification, etc.)
    • Demo-style assessments (e.g., “Show me how to generate a contract for LOB X”)
    • Official Duck Creek certification: 1-day 8\,\text{h} proctored assessment

Learning Outcomes (Phase 1)

  • Explain Distribution Management Solution (DMS) at high & detailed levels
  • Execute key workflows:
    • Agent/agency onboarding
    • License & appointment verification
    • Agency termination & M&A scenarios
  • Navigate full DMS UI + self-service portal
  • Understand “Phase 1 vs Phase 2” language (internal to DMS, not project phases):
    • Phase 1 = onboarding & compliance
    • Phase 2 = compensation (commission, incentives, profit-sharing)

Why Carriers Buy DMS (Strategic Value)

  • Centralised tool for carriers (insurers) to manage external distribution forces (agents/agencies)
  • Gains
    • Efficiency: automated workflows, real-time background & license checks
    • Compliance: ensures DOI/NIPR rules, E&O, cyber liability, W-9, etc.
    • Strategic compensation: business users can create/alter plans instantly (no code → game-changer)
    • Self-service: agents update addresses, upload docs, request state expansions
    • Data: feeds Duck Creek Insights (now branded Clarity) for analytics / ML

System Landscape & Data Flow

          +----------------+                 +--------------+
 Agent →  | Agency Portal  |  REST/SOAP  →   |  Policy PAS  |
          +----------------+                 +--------------+
                                           ↙︎   ↑        ↘︎
                         Product rules ↘︎  ↗︎    |          ↘︎ Billing / Claims
                                +------+     +-------+
                                | DMS  |<--> |Clarity|
                                +------+     +-------+
                                        ↘︎ NIPR Gateway (Lic/Appt)
  • Agency Portal / “Producer” – thin UI, stateless; relies on PAS & DMS APIs
  • Policy Admin System (PAS) – source of truth for quotes/policies; no business rule clutter
  • DMS controls:
    • Product eligibility (LOB × Product × UWC × State × EffDate)
    • Roles/privileges, agency codes, commissions
  • Insights / Clarity – enterprise data warehouse

Core Insurance Terminology (must-know)

  • LOB (Line of Business): personal auto, commercial property, workers’ comp, etc.
  • Product: granular item under LOB (vehicle, trailer, antique car …)
  • UWC (Underwriting Company): legal entity filing rates (may differ per LOB)
  • State: every rule ultimately state-specific; examples
    • AZ → no mandatory appointment
    • NY / MA → appointment compulsory & must be reported
  • DOI (Department of Insurance): regulator → issues rules
  • NIPR (National Insurance Producer Registry): DOI’s portal/API hub for
    • Licensing (new + renewal)
    • Appointments & terminations
    • Producer Database (PDB) & Regulatory Info Retrieval System (RIRS)
  • E&O (Errors & Omissions) & Cyber Liability: mandatory agent coverages
  • Agency Code: identifier passed on every PAS transaction for commission tagging

DMS Suite – Four Major Modules

  1. Producer Compliance Management
    (Onboarding & Compliance)

    • Configurable workflow steps (invite → data entry → background check → e-signature → review → agency setup)
    • Online Accord forms; DocuSign (OOB) or Adobe Sign (config) for e\text{-}Sign
    • Real-time background checks via Accurate (partner)
    • Documents captured: W9, E&O, cyber‐liability, bank info, etc.
    • License verification & (optional) appointment, incl. “Just-In-Time” (JIT) path
    • Contract generation (dynamic XSLT↔PDF) – heavy one-time conversion effort
    • Agency Setup checklist → activates portal access + welcome letter
    • Termination & Mergers/Acquisitions features cascade through NIPR

  2. Compensation Management (Phase 2)

    • Schedules/plans for commissions, incentives, profit-sharing
    • Rate matrix initially supports {State,\ UWC,\ LOB,\ Product}; real projects add extra keys (e.g., SDIP score)
    • Agency-specific overrides; mass schedule attachment (pre-GoLive only)
    • Calculation engine marries PAS transactions to schedules → Commission = Premium \times Rate
    • Adjustments (positive/negative), annual rate updates
    • Outputs: Statements, CSV/flat files to A/P, ACH or check payments

  3. Agency & Agent Self-Service Portal

    • Same SSO credentials as Agency Portal but separate URL (legacy reason)
    • Functions
      • Update demographics & banking
      • Upload/renew E&O, licenses, W-9, certificates
      • Request new states / LOB access
      • View commission statements & bulletins

  4. PPRM – Producer Performance & Relationship Management

    • CRM-lite: goal setting, call reports, document repository
    • Often left OOTB because many carriers already use Salesforce, etc.

NIPR Interactions & Costs

  • Licensing/renewal, appointment, termination, PDB “alerts” all triggered via DMS web-services
  • Typical transaction fee \approx 2\,\text{USD} (e.g., 1.5 NIPR + 0.5 DMS reseller)
  • Regulatory updates: Duck Creek ops team patches state rule tables every 2\text{wk} (currently manual)
  • Just-In-Time (JIT) Appointment
    • Saves paying 2 upfront for every onboarded producer
    • Trigger chain:
    1. Agent submits quote → PAS sees no appointment
    2. PAS calls DMS API (flag JIT)
    3. DMS performs real-time appointment via NIPR; records cost
    4. PAS proceeds → quote bound
    • Analogy used: Uber driver paying interstate fee only at border vs. buying quarterly permit

Hierarchy Management & M&A

  • Hierarchy tree = corporate → agencies → sub-locations → producers
  • Functions: move, merge, split, acquire; cascades eligibility, schedules & codes
  • M&A wizard ensures audit trail & optional retro-effective compensation rollover

Reporting

  • In-module BI (legacy) + Clarity warehouse
  • Key canned outputs
    • Producer Database (PDB) report (licensing, appointments, RIRS)
    • Compliance aging (E&O, cyber, W-9 expiries, 90/60/30 day notices)
    • Compensation statements & adjustment audit

Technical Footprint

  • Java web-services; SQL Server DB
  • XML/JSON data exchange; headless agency portal relies on APIs only
  • Stand-alone module deployment supported (pick any subset to lower license fee)
  • SaaS only (on-prem retired)

Practical & Ethical Considerations

  • Accuracy of regulatory data → avoid illegal writings & class-action exposure
  • Automation reduces manual paperwork but shifts liability to system configs
  • High conversion cost of contract docs (XSLT) must be weighed versus ROI
  • Mass updates (rates, hierarchy) powerful yet dangerous – require governance

Connections to Broader Insurance Ecosystem

  • PAS/Billing/Claims remain carrier “core”; DMS augments, never replaces
  • JIT appointments parallel to ACORD e-Submit initiative & other industry APIs
  • Competitors now bundling license-issuance + auto regulatory updates → watch market

Numerical / SLA References

  • Training sprint length: 3\,\text{wk} typical sprint
  • Certification exam: 8\,\text{h}
  • NIPR fees: 2\,\text{USD} (average per transaction)
  • Reminder cadence: 90 \rightarrow 60 \rightarrow 30\,\text{days} pre-expiry

Next-Step Assignments for Trainees

  • Obtain environment access & run through onboarding flow end-to-end
  • Draft first user-guide chapter: “How to Verify a License & Perform JIT Appointment”
  • Prepare questions on LOB/UWC/state matrix for tomorrow’s deep-dive
  • Coordinate with prior cohort (Ravi, Sikander, etc.) for peer-learning