Is analytics the game changer and golden ticket for insurance

organizations?

Presented by: Margaret Resce MilkintManaging Partner

“Analytics is a game-changer for insurers looking to increase competitive advantage.”

-Innovation Insurer

State of the Industry

Unemployment-to-Job Ratio

Source: Statistics Canada

0%

2%

4%

6%

8%

Insurance & Related Overall

Ratio of Unemployed Individuals to Open Job Positions

5.5% Overall

1.0% Insurance

Recruiting Difficulty

Source: The Jacobson Group and Ward Group, Semi-Annual Insurance Labor Outlook Study, January 2015

Technology, actuarial,

executives, analytics and

underwriting are the top five most

difficult functions to recruit for in the U.S.

0 2 4 6 8 10

Operations

Accounting

Claims

Compliance

Sales/Marketing

Product Management

Underwriting

Underwriting-Reinsurers

Analytics

Executives

Technology

Actuarial

January 2015

U.S. Staffing Plans

Source: The Jacobson Group and Ward Group, Semi-Annual Insurance Labor Outlook Study, January 2015

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

Jan-15 Jan-14 Jan-13

Most in Demand

Most Likely

Least Likely

Least in Demand

Growth of Analytics

Source: Marsh, EY

U.S. vs. Canadian Analytics Trends

Despite a slight lag in the initial introduction of analytics trends in the Canadian insurance industry, the changes currently being seen in

the U.S. are being mirrored in Canada.

These trends include:• Digital as a key driver

of market-share growth• Need for out-of-

industry talent• Improvement of data

analytics capabilities

Source: Gartner; RCR Wireless News

Big data and analytics jobs are forecasted to increase 92% by 2017.

New roles include:

• Chief Analytics Officer

• Digital Analytics Analyst• Marketing Analytics

Officer

• Analytics Scientist

• Director of Analytics• Data Engineer/

Data Scientist

Source: Kaizen Analytics

Where will analytics “sit” within an organization?

Options include:

• Information Technology

• Finance

• Actuarial

• Marketing Best Practice: Central Analytics Team

• Supports• Educates• Evangelizes

Source: IBM

Global big data and analytics spending is expected to more than double by 2016.

$27 Billion

$55 Billion

Source: Strategy Meets Action

25% of insurers are now investing inbig data and analytics.

Source: Canadian Underwriter

Within the Canadian insurance industry, carriers who use data effectively are seeing

gains. Analytics is now an operationaland competitive necessity.

Analytics Demand

Analytics Talent

By the end of this year, the U.S. could see a

shortfall of more than 260,000 analytics

professionals.

Source: Accenture

Talent Supply

Talent Demand

{-260,000}

Attracting Analytics Talent

Create a compelling story. Highlight what the industry has done using analytics and the exciting changes on the horizon.

Showcase how analytics is innovating insurance. Focus on big data and analytics as the driver of this innovation.

Reconsider the actuary as a resource and talent source.

Attracting Talent

Brand your organization with participation in technology and analytics communities.

Provide executive sponsorship to highlight your commitment to big data and analytics.

Attracting Talent

Tap into nontraditional spaces and look beyond the standard tech school graduates when recruiting for tech talent.

Out-of-Industry Talent

Focus on skills versus experience.

• Information technology

• Quantitative analysis

• Problem-solving

• Data gathering

Out-of-Industry Talent

“This is the age of analytics. In the end, the winners will be those that master data and analytics.”

-Mark Breading, Partner and Chief Research Officer, Strategy Meets Action

Questions?

Thank You!

Margaret Resce MilkintManaging PartnerThe Jacobson Group+1 (312) 884-0410mmilkint@jacobsononline.comjacobsononline.com