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


AGENDA

Analytical Insurance

Understanding Customer Life Time Value

Managing Call Centres Interactions

The Digital Insurer


“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


THE ANALYTICAL INSURER


AGENDA




The Digital Insurer


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.


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


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


CASE STUDIES AVIVA GETS THE FULL PICTURE WHEN DISESTAR STRIKES


AGENDA




The Digital Insurer


Renewal

Mid-Term

Adjustment (MTA)

Mid-Term

Cancelation (MTC)

New Business Claim - FNOL

Claim - Updates


EXAMPLE – DETECTING POSSIBLE FRAUD AT FNOL


AGENDA




The Digital Insurer


THE DIGITAL

INSURERTHE INTERNET OF THINGS


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

https://www.youtube.com/watch?v=w4YU0Zkhju8

https://www.youtube.com/watch?v=w4YU0Zkhju8


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.


RESULTS IN

NUMBERS?

Traditional Data – claims, policy systems

Third Party Data

Telematic Data

Web Data


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


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


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


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


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


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


THANK YOU

The Analytical Insurer - Sas Institute · THE DIGITAL INSURER Much has been written on this topic...

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