The Analytical Insurer - Sas Institute · THE DIGITAL INSURER Much has been written on this topic...
Transcript of The Analytical Insurer - Sas Institute · THE DIGITAL INSURER Much has been written on this topic...
Copyr i g ht © 2012, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
THE ANALYTICAL INSURER
SAS AZERBAIJAN ANALYTICS SUMMIT, FEBRUARY 3RD
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AGENDA
Analytical Insurance
Understanding Customer Life Time Value
Managing Call Centres Interactions
The Digital Insurer
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AGENDA
Analytical Insurance
Understanding Customer Life Time Value
Managing Call Centres Interactions
The Digital Insurer
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“FCCI Insurance Group anticipates a 1%
to 1.5% percentage point improvement in
their combined ratio by using business
analytics.”
For FCCI this would equate to between $4.6m and $6.9m per annum
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THE ANALYTICAL INSURER
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AGENDA
Analytical Insurance
Understanding Customer Life Time Value
Managing Call Centres Interactions
The Digital Insurer
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UNDERSTAND YOUR CUSTOMERS BETTER THAN ANYONE ELSE
Navigating large data volumes by
specific data attribute(s) in order
to gain insights and market most
effectively to the customer.
1
2
Apply predictive and descriptive
modeling techniques in order to
understand customer behavior
more deeply.
3
Improving retention, cross-sell &up-
sell by identifying social communities
based on relationships between
clients; measure, segment & target
clients based on social influence.
4Provide an integrated
environment to manage big data as a
valued asset for operational processes
& strategic decision making.
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low
high
Custo
me
r V
alu
e
Probability of cancelation
0
No services
No discounts
Cancel activelyDo nothing
Expensive
to keep these
customers
Limited services
Low discounts
Do nothing
Medium services
Medium discounts
Approach actively
Focus customers
High services
High discounts
hig
h
TYPICAL SEGMENTATION
low
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Focus on delivering superior service and not
competing on price
• Discovered that 22% of customers contribute 80% of profit.
• Concentrating on this group saw a 25 to 50% uplift in cross sell response rates.
Segment customers and provide actions to
agents
• The portion of A and B customers could be increased by 20% in 20 months while the percentage of D and E customers could be reduced by 20%
CASE STUDIES
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CASE STUDIES AVIVA GETS THE FULL PICTURE WHEN DISESTAR STRIKES
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AGENDA
Analytical Insurance
Understanding Customer Life Time Value
Managing Call Centres Interactions
The Digital Insurer
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Renewal
Mid-Term
Adjustment (MTA)
Mid-Term
Cancelation (MTC)
New Business Claim - FNOL
Claim - Updates
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EXAMPLE – DETECTING POSSIBLE FRAUD AT FNOL
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AGENDA
Analytical Insurance
Understanding Customer Life Time Value
Managing Call Centres Interactions
The Digital Insurer
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THE DIGITAL
INSURERTHE INTERNET OF THINGS
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THE DIGITAL INSURER
Much has been written on this topic
• Still evolving
• Insurers are starting on this journey
BNP Paribas Cardif in Italy offer Habit@t
– insurance package that uses
technology to secure customers homes
– sensors for fire, smoke , water etc.
US healthcare insurer Humana have
partnered with Apple to share health data
about the customer – which can lead to
lower premiums for Humana’s customers
Direct Line in the UK is one of many
insurers promoting the 2nd wave of
telematics
Copyr i g ht © 2012, SAS Ins t i tu t e Inc . A l l r ights reser ve d .
THE DIGITAL INSURER
Much has been written on this topic
• Still evolving
• Insurers are starting on this journey
“For me, the insurer that is digital
is the insurer that is very capable
at smartly using data”
Nicolas Aubert
AIG COO for EMEA
Google has obtained license to sell
insurance in 48 US states.
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RESULTS IN
NUMBERS?
Traditional Data – claims, policy systems
Third Party Data
Telematic Data
Web Data
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GLOBAL COMMERCIAL LINES INSURER DATA - VARIETY
BUSINESS GOALS
• Streamline time to market when developing, testing and
deploying predictive models
• Create a replicable, accurate analytical process
• Gain and expand cultural adoption of analytics over more
traditional methods within the insurance operations and
lines of business
RESULTS
• Enhanced accuracy in pricing, service and claims
reserving
• Improved risk analysis and exposure
• Drive opportunities in new lines of business
“With SAS we intend to delve into more data in ways that were once unimaginable, to glean unique insights we can use to drive profitable growth .”
SVP, Strategic Analytics
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TIER 2 EUROPEAN INSURER DATA - VERACITY
BUSINESS GOALS
• Resolve data-quality issues to support customer needs
and improve marketing efforts
RESULTS
• Gained a set of data-quality rules for concepts like
entities, products and addresses
• Solution was flexible enough to allow users to be self-
sufficient in creating and changing business rules
• Clean, accurate, updated data easier for customers to
understand
• Immediate intervention at sources of poor data quality
“We achieved our goal of having customer data that is more accurate, complete and reliable with a tool that is easier to use.”
Business Solutions Manager
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DATA - VELOCITY
BUSINESS GOALS
• Needed to analyze telematics data to gain critical insight
into the large number of variables that contribute to how
customers drive
RESULTS
• Enhances pricing and marketing accuracy
• Better understanding customer profile and driving
behavior
“Our telematics box collects up to 25 times more data than traditional telematics devices, and this is why we needed the powerful analytics solution we found in SAS.”
CEO
UK TELEMATICS INSURER
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OCTO TELEMATICS
TELEMATICS & ANALYTICS FOR MONETIZATION
DATA - VELOCITY
To date, Octo’s success has been built on the
capability to understand the needs of insurance
companies and consumers
SAS provides Octo with the analytical platform to analyze driver behavior and provide insurance
companies offering innovative value-added services to customers, helping them to enrich
pricing
CEO - Fabio Sbianchi
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DATA - VOLUME
BUSINESS GOALS
• Integrating at least 5 disparate data systems into a single
user-friendly platform
• Faster, more accurate data to empower employees and
improve decision making
RESULTS
• Nearly four times as many people now supported with
analytics and reporting
• Teams empowered with self-service reporting and
analysis
• Increased speed and efficiency due to reliable data
“SAS is instrumental in helping us achieve a more accurate view of our data – allowing us to move faster and be more competitive.”
Group Head of Pricing and Management Information
TIER 1 UK INSURER
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EXPANDING
ANALYTICS USEACTIONS TO TAKE…
Sow the seeds of innovation
Federate your structured and unstructured data
Keep an eye open for new data sources
Involve your business teams such as Underwriting andClaim Units into your analytical projects
Focus on short-term successes for a BIG WIN
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THANK YOU