Commercial Pricing & Portfolio Analytics
Transcript of Commercial Pricing & Portfolio Analytics
Commercial Pricing & Portfolio AnalyticsThree impossible things before lunch, with apologies to Lewis Carroll
David Ovenden
September 2019
Commercial Pricing & Portfolio Analytics
September 2019 2
Agenda
Challenges
Ambition Statements
Data Assets & Data Strategy
The Answer v Decision Support
Technology
A Vision for the Future
“Three Impossible Things before Lunch”
September 2019 3
The Challenge
A Strategy for data
Unpicking the technology
Changing the culture
Ambition Statements“Every adventure requires a first step”The Cheshire Cat, Alice in Wonderland
28 August 2019
“Every adventure requires a first step”
September 2019 5
Ambition Statements
Technical
Pricing
Underwriting
Decision
Support
Active
Portfolio
Management
Process
Efficiency
Technology
Culture and Leadership
Data Assets & Data Strategy“Curiouser & Curiouser”Alice, Alice in Wonderland
27 August 2019
“I do not have enough data to build a predictive model”
September 2019 7
Data Actions
• Align the past
• Fix the future
• Cross function data alignment
• Global consolidation
• External enrichment
• Unstructured data
Case Study
Tone from the top
Intolerance of anecdote
Correction of data issues
Breaking the cycle of poor data
September 2019 8
Data Strategy
Identify
Capture
Conte
nt
Store/
Protect
ProvisionE
nvironm
ent
People
Process
Culture
The Answer v Decision Support“It would be nice if something made sense for a change”Alice, Alice in Wonderland
27 August 2019
Size is a poor proxy for complexity
September 2019 10
Automated Trade Footprints
Often SME or eTraded risks are defined
by some simple one dimensional metric:
• Risks less than £10k
• Risks with less than 10 employees
• Risks that have less than a £1m in
turnover
Plotting this against trade provides a
circular automated footprint
Construction
Financial
Services
Manufacturing
Charities and
Social
OrganisationsLogistics and
Transportation
Property
Owners
and Real
Estate
Automotive
and
Aviation
Retail
Size is a poor proxy for complexity
September 2019 11
Automated Trade Footprints
Often SME or eTraded risks are defined
by some simple one dimensional metric:
• Risks less than £10k
• Risks with less than 10 employees
• Risks that have less than a £1m in
turnover
Plotting this against trade provides a
circular automated footprint, adding a
trade based layer makes things more
granular and interesting + Features - Features
Significant homogeneity
(no touch – autorated)
Case UW required
Identifiable risk drivers
(low touch)
Model
breakdown
point
Sector / Segment / perils
Average
Intervention area
Siz
e / C
om
ple
xity
Size is a poor proxy for complexity
September 2019 12
Automated Trade Footprints
Often SME or eTraded risks are defined
by some simple one dimensional metric:
• Risks less than £10k
• Risks with less than 10 employees
• Risks that have less than a £1m in
turnover
Plotting this against trade provides a
circular automated footprint, adding a
trade based layer makes things more
granular and interesting
Construction
Financial
Services
Manufacturing
Charities and
Social
OrganisationsLogistics and
Transportation
Property
Owners
and Real
Estate
Automotive
and
Aviation
Retail
Expanded Appetite Restricted Appetite
Using scored layers to create granular segments
September 2019 13
Enhanced Automated Footprint
Using an increasingly wide range of internal and external
data assets, it’s possible to develop, test and deploy a range
of models across the workflow process:
Pricing
Risk selection
Structured interventions
Routing
Prioritisation
Evaluation
These can be used to automate all or part of the business
process or support human intervention with decision support
Providing support requires a process
September 2019 14
The Underwriting Process
Understand the
risk and context
Initial acceptance
decisionTerms and
Conditions
Present the deal
optionsNegotiate
Price the risk
Develop deal
options
Research &
Pipeline
Case Underwriting decisions in context
September 2019 15
Decision Support
Example: operational models and decision support
September 2019 16
The Underwriting Process
Understand the
risk and context
Initial acceptance
decisionTerms and
Conditions
Present the deal
optionsNegotiate
Price the risk
Develop deal
options
Research &
Pipeline
Workflow Orchestration
Internal & External Data Assets
Example: operational models and decision support
September 2019 17
Risk Selection Support
Understand the
risk and context
Initial acceptance
decisionTerms and
Conditions
Present the deal
optionsNegotiate
Price the risk
Develop deal
options
Research &
Pipeline
Workflow Orchestration
Internal & External Data Assets
Outlier Identification
Sophisticated Automated Footprint
Example: operational models and decision support
September 2019 18
Renewal Optimisation
Understand the
risk and context
Initial acceptance
decisionTerms and
Conditions
Present the deal
optionsNegotiate
Price the risk
Develop deal
options
Research &
Pipeline
Workflow Orchestration
Internal & External Data Assets
Renewal Strategy
Broker connectivity Broker
automated
Trading
Rules
Negotiation at portfolio level
Example: operational models and decision support
September 2019 19
Renewal Optimisation
Example: operational models and decision support
September 2019 20
Renewal Optimisation
Unpicking the Technology“It’s not done by everyone minding their own business”Alice, Alice in Wonderland
27 August 2019
September 2019
22
Connected Specialisms
Policy Admin System /
Systems of Record
Impact Analysis, Scenario
Modelling & Street Pricing
Predictive
Modelling
Decis
ion
En
gin
e
New business triage
Broker dashboards
Renewal segmentation
Automated footprint
Industrialised planning and
reporting
Active portfolio
management
Op
era
tiona
l Data
Sto
rage
Credit and other TP data
Data
Ingestion
Broker API
interfaces and
Portals
eTrading /
Software house
deployment
Insurtech
Scoring
Interface and integration layer
Insurtech
DistributionUW Workbench
Core system of record
Market Facing & Decision
components
Pricing and Analytics Hub
enabled solutions
Data and Systems Integration
Data Extraction and Storage
A Vision for the Future“That is impossible……only if you believe it is”Alice and The Mad Hatter, Alice in Wonderland
27 August 2019
“That is impossible….only if you believe it is”
24
The Future
Execution Screen Insight Screen
“That is impossible….only if you believe it is”
25
The Future
Execution Screen Insight Screen
Real-time Connected Context
Questions“…which way ought I go from here?”Alice, Alice in Wonderland
27 August 2019