2. 1
Table of Contents
Market Size ............................................................................................................... 3
Real Estate................................................................................................................. 3
Major Companies.................................................................................................... 3
Product/Services Offered........................................................................................ 3
Global Market Size ................................................................................................. 3
Health......................................................................................................................... 3
Major Companies.................................................................................................... 3
Product/Services Offered........................................................................................ 3
Global Market Size ................................................................................................. 3
Life ............................................................................................................................. 3
Major Companies.................................................................................................... 3
Product/Services Offered........................................................................................ 3
Global Market Size ................................................................................................. 3
Specialty..................................................................................................................... 3
Major Companies.................................................................................................... 3
Product/Services Offered........................................................................................ 3
Global Market Size ................................................................................................. 3
Automobile ................................................................................................................. 4
Major Companies.................................................................................................... 4
Product/Services Offered........................................................................................ 4
Global Market Size ................................................................................................. 4
Market Segments...................................................................................................... 4
USA............................................................................................................................ 4
Size......................................................................................................................... 4
Segments ............................................................................................................... 4
Major Companies.................................................................................................... 5
3. 2
Government Regulations........................................................................................ 5
UK .............................................................................................................................. 5
Size......................................................................................................................... 5
Segments ............................................................................................................... 5
Major Companies.................................................................................................... 6
Government Regulations........................................................................................ 6
Germany .................................................................................................................... 6
Size......................................................................................................................... 6
Segments ............................................................................................................... 6
Major Companies.................................................................................................... 6
Government Regulations........................................................................................ 7
Health Insurance Products that Use Analytics...................................................... 7
Analytics ................................................................................................................. 7
Provided to Insurance Companies So that They Can Offer Products:.................... 8
Directly Offered by a Company to a Consumer and Companies: ........................... 8
Benchmarks.............................................................................................................. 9
Absolute Requirement ............................................................................................ 9
Unique Selling Points.............................................................................................. 9
Change Management Plan....................................................................................... 9
What is the Change? .............................................................................................. 9
How Will Vader Be Positioned? ............................................................................ 10
How Can Vader Be Brought to Market?................................................................ 10
Who Needs to Get Involved?................................................................................ 11
4. 3
Market Size
Real Estate
Major Companies
American International Group Inc. (AIG); Liberty Mutual Group; Berkshire Hathaway
(includes GEICO); China Pacific Insurance Group; Allianz; Ping An.
Product/Services Offered
Construction and Product Related Liability; Environmental; Specialty Catastrophe
Unit; Green Building; Restoration; Design Professionals.
Global Market Size
Health
Major Companies
Aetna Incorporated(45 million members); Allianz; China Life Insurance; CIGNA; DKV
Deutsche Krankenversicherung; UnitedHealth Group; WellPoint Health Networks.
(Figure 1)
Product/Services Offered
Expat Health Insurance; Supplemental Coverage; Short-term Business Travel; Non-
government Organisations; Individual Private Health Insurance; Private Insurance;
Business Insurance; Asset Management; Global Lines of Business; Assistance
Services; Sustainable Solutions; etc.
Global Market Size
In 2008, the global private health insurance market is forecast to have a value of
$392.2 billion, an increase of 31.1% since 2003. The global private health insurance
market reached a value of $299.1 billion in 2003, having grown with a compound
annual growth rate (CAGR) of 7.1% in the 1999-2003 period. The largest market on
a global scale is the US market, accounting for 67.1% of the global market at the end
of 2003. The Asia-Pacific market is the fastest growing market, reaching a CAGR of
9.4% over the period 1999-2003 and forecasted to obtain a CAGR of 8.8% over the
next five years. The leading revenue source for the global private health insurance
market in 2003 was individual private health insurance, which accounted for 72.2%
of the market’s value. This sector was worth $215.96 billion in 2003 in terms of gross
premiums. During the next five years the market is expected to experience a slight
decline in growth rates as the major global markets mature. By 2008, the market is
forecast to reach a value of $392.23 billion, equating to a CAGR of 5.6% in the
period 2003-2008. Once again, Asia-Pacific is expected to the leading growth driver
for the global market in this period.("Global Health Insurance." Private Health
Insurance Industry Profile: Global (2004): 8. Business Source Complete. Web.)
(Figure 2)
5. 3
Life
Major Companies
AXA (life insurance, property and casualty insurance, and reinsurance products);
Japan Post Group (postal savings, and postal life insurance businesses); MetLife (90
million customers in over 45 countries); Prudential Financial, Inc. (Americas, Europe,
the Middle East, Africa, and Asia Pacific). (Figure 3)
Product/Services Offered
Universal Life Insurance; Indexed Universal Life Insurance; Variable Universal Life
Insurance; Whole Life Insurance; Permanent Life Insurance; Accidental Death &
Dismemberment; Term Life Insurance.
Global Market Size
Grew by 3% in 2012 to reach a value of $2,473.8 billion. In 2017, the global life
insurance market is forecast to have a value of $2,947.4 billion, an increase of
19.1% since 2012. Life insurance is the largest segment of the global life insurance
market, accounting for 65.7% of the market's total value. The global life insurance
continued to grow this year, after a period of moderate contraction in value.
However, despite this growth, the degree of rivalry remains strong. ("Life Insurance
Industry Profile: Global." Life Insurance Industry Profile: Global (2014): 2. Business
Source Complete. Web. ) (Figure 4)
Specialty
Major Companies
Lloyd; Catlin Group Ltd; Hiscox Ltd; HCC Insurance; RenaissanceRe Holdings Ltd;
OdysseyRe; Swiss Re; XL Group; Hanover; AGCS; Berkshire Hathaway Specialty
Insurance Endurance; RenaissanceRe; Hardy Underwriting Bermuda Ltd; Pacific
Specialty; Aspen Surety; One Beacon; Allied World; Westfield and Main Street
America Nationwide; Berkshire Hathaway Specialty Insurance Endurance. (Figure 5)
Product/Services Offered
High-hazard Insurance; Non-standard General Insurance; Niche Market Segments;
Bespoke Underwriting; Excess & Surplus Lines Insurance. ("Specialty Insurance
Market Key Trends, Size, Share, Growth, Opportunities and Forecast Insight Report:
MarketResearchReports.Biz." InsuranceNewsNet.)
Global Market Size
The global market size for specialty insurance, in terms of gross written premium,
was estimated to be in the range of US$140–180 billion in 2013. The US is the
largest specialty insurance market, contributing more than 50% of the overall gross
written premium in 2013. Specialty insurance is a high-risk, high-return market
characterized by underwriting profitability. The underwriting cycles for specialty
insurance products are currently in a difficult market phase, resulting in higher
underwriting profits for insurers. On average, specialty carriers across the world
generate strong underwriting profitability in comparison to property and casualty
insurers. However, their exposures to catastrophic risks led to record losses in 2011
as a result of the earthquake in Japan and the Thai floods. ("Timetric Insurance
6. 4
Reports." Insight Report: Specialty Insurance – Key Trends and Opportunities in the
Market. Web.)
Automobile
Major Companies
Berkshire Hathaway in the US (in millions $182,150.0 revenue); Allianz in Germany
(in millions $134,636.1 revenue); Munich Re Group in Germany (in millions
$83,844.8 revenue); Zurich Insurance Group in Switzerland (in millions $72,045.0
revenue).
Product/Services Offered
Auto Liability; Physical Damage; Medical Payments; Uninsured/Underinsured
Motorist; On-hook/In-tow; Cargo; Hired/Non-owned; Garage Liability;
Garagekeeper's Liability.
Global Market Size
When discussing property and casualty insurance it is imperative to differentiate
between mature and emerging markets. Growth in this growth market is correlated
with GDP growth. According to McKinsey & Company average annual global growth
has been 5% since 2009 compared to the 6% nominal annual GDP growth. Mature
markets are saturated and have been declining slowly over the past decade. The
reason is the safety technological advancements and thus, less or less severe
accidents. The situation is different in emerging markets. In mature markets auto
insurance premiums have declined from 43% in 2002 to 39% in 2012. Whereas in
emerging markets premiums increased from 48% to 56%. In 2013 the global auto
insurance industry grew by $33 billion 64% coming from emerging markets. 38% of
growth from the emerging markets came from Emerging Asia. (Figure 6) (McKinsey
& Company. “Global Insurance Industry Insights. An In-Depth Perspective”.)
Market Segments
USA
Size
The U.S. insurance industry’s net premiums written totalled $1 trillion in 2013
according to SNL Financial. P/C insurance consists primarily of auto, home and
commercial insurance. Net premiums written for the sector totalled $481.2 billion in
2013. The L/H insurance sector consists primarily of annuities and life insurance. Net
premiums written for the sector totalled $560.3 billion in 2013. Insurance premiums
paid each year equal about 7 percent of the U.S. gross domestic product. There
were 6,086 insurance companies in 2013 according to the National Association of
Insurance Commissioners. The U.S. insurance industry employed 2.4 million people
in 2013, according to the U.S. Department of Lab. (Insurance Information Institute,
“Industry Overview: Insurance Industry at a Glance”)
Segments
Life/health (L/H) insurance account for 54 percent in premium and consists primarily
of annuities and life insurance. Property/casualty (P/C) insurers account for 46
7. 5
percent. Casualty areas include auto liability, professional liability, workers’
compensation and general liability. (Insurance Information Institute, “Industry
Overview: Insurance Industry at a Glance”) (Figure 7)
Major Companies
Metlife (life and health insurance, auto insurance, home insurance, annuities);
Prudential Financial (with $1.17 trillion in assets under management in 2014 and
about $3.6 trillion of gross life insurance worldwide); Allstate Insurance Company
(auto, homeowners, renters, business insurance programs, personal liability, life);
Liberty Mutual (the third largest property and casualty insurer in the U.S.); American
International Group (AIG); Berkshire Hathaway (insurance and reinsurance of
property and casualty risks).
Government Regulations
In 2010, Congress passed the Dodd–Frank Wall Street Reform and Consumer
Protection Act. The Dodd-Frank Act has significant implications for the insurance
industry. It created the Federal Insurance Office (FIO) in the Department of the
Treasury. The FIO is authorized to modernize insurance regulation and monitor all
aspects of the insurance industry. The Dodd-Frank Act also established the Financial
Stability Oversight Council (FSOC), which is charged with monitoring the financial
services markets, including the insurance industry, to identify potential risks to the
financial stability of the United States.
Affordable Care Act (ACA). ACA is a complex healthcare reform law that went into
full effect in 2014. ACA requires all US citizens and certain US residents to maintain
health insurance that meets ACA standards, or pay a fee with their tax return if they
fail to qualify. (Legislative Analyst’s Office, “The Patient Protection and Affordable
Care Act”)
UK
Size
The UK insurance industry is the third largest in the world and the largest in Europe.
It is an essential part of the UK’s economic strength, managing investments
amounting to 26% of the UK’s total net worth and contributing £10.4 billion in taxes
to the Government. Employing some 290,000 people in the UK alone, the insurance
industry is also one of this country’s major exporters, with almost 30% of its net
premium income coming from overseas business. ("Insurance Industry Profile:
United Kingdom." Insurance Industry Profile: United Kingdom (2014): 7. Business
Source Complete. Web) (Figure 8)
Segments
The insurance market consists of the non-life insurance sector and the life insurance
sector. The life insurance sector consists of mortality protection and annuity. The
non-life insurance sector consists of accident and health, and property and casualty
insurance segments. ("Insurance Industry Profile: United Kingdom." Insurance
Industry Profile: United Kingdom (2014): 7. Business Source Complete. Web)
(Figure 9)
8. 6
Major Companies
Aegon N.V. (non-life and life insurance, pensions, limited banking activities and
asset management products and services); Aviva plc (long-term insurance and
savings, general and health insurance, and fund management products and
services); Lloyds Banking Group plc (retail, private and commercial banking,
investment services, pension management, treasury services, insurance, wholesale
banking, and international banking); Prudential plc (pre and post retirement market
and fund management products and services, insurances and retail financial
products). (Figure 10)
Government Regulations
Government regulation is stringent, with life (and non-life) insurance falling under the
supervision of the Financial Services Authority (FSA), although this split into the
Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) in
2013, which can limit market entries by imposing capital adequacy and other
requirements on players. Furthermore, the pending implementation of Solvency II, an
EU insurance regulatory directive due for implementation in 2014, may serve to
further put off new entrants, limiting the reliance life insurance companies are able to
have on banks. Tight regulation must be considered by any prospective new entrant
wishing to enter the market. (Insurance Industry Profile: United Kingdom. Business
Source Complete. MarketLine Industry Profile. "Insurance Industry Profile: UK.")
Germany
Size
Total number of insurance companies in 2013 – 560, life – 90, health – 48, P&C 210,
reinsurance – 29. In 2012 Germany’s insurance companies earned 231,778 million
in EUR gross premiums. Insurance industry had 244.7 billion Euros in 2012. IT
services had 99.0, chemical industry - 144.9, engineering - 223.6 and retail industry
498.4 respectively. Penetration rate in the industry in 2013 was 6.84%. Insurance
companies employed 547,600 people in 2013. Premium insurance tax revenue in
2012 was €11,553 million in, 19%. The insurance industry serves the German
economy by being a long-term oriented capital provider with an investment portfolio
worth €1,400 billion. It is also the leading market for reinsurers in the world with 30%
global reinsurance premiums. Foreign direct investment in German insurance
companies amounted to €16,539 million in 2012. The segments are life, health, P&C
and reinsurance. (Gesamtverband der Deutschen Versicherungswirtschaft e.V..
“Statistical Yearbook of German Insurance”.)
Segments
The insurance market consists of the non-life insurance sector and the life insurance
sector. The life insurance sector (53.80% in 2012) consists of mortality protection
and annuity. The non-life insurance sector (46.20% in 2012) consists of accident and
health, and property and casualty insurance segments. (Figure 11)
Major Companies
Allianz Group with its insurance operations directed in P&C, life and health for
corporate and private clients; AXA is providing the market with life, health, P&C and
reinsurance coverage; Generali Deatchland is engaged in life, health, P&C and legal
9. 7
expenses insurance segments; R+V Allgemeine Versicherungen offers a range of
life and non-life insurance coverage to private and corporate clients. (Insurance
Industry Profile: Germany. Business Source Complete. MarketLine Industry Profile.
"Insurance Industry Profile: Germany.")
Government Regulations
It is important to note that everyone in Germany is required to be insured. Many
people have simply have the basic coverage which would be determined analyzing
their income, imposed taxes, tax refunds and family composition. Others also
purchase private insurance coverage which may vary because of numerous reasons.
Germans claim that they tried to make the market as free and competitive as
possible. A recent a recent law states “that certain intermediaries do not require
authorisation or may apply for exemption from the authorization requirement”. They
also mention that such matters ought to be read and analyzed in German for better
implementation. (BaFin: Federal Financial Supervisory Authority. “Circular 9/2007
(VA) – Guidance notes regarding the application of sections 80 et seq. of the
German Insurance Supervision Act and section 34d of the German Industrial Code
(Insurance Mediation Law)”.)
Health Insurance Products that Use Analytics
Analytics
IBM defined analytics as the “systematic use of data and related business insights
developed through applied analytical disciplines (e.g. statistical, contextual,
quantitative, predictive, cognitive, other [including emerging] models) to drive fact-
based decision making for planning, management, measurement and learning.”
(Cortada, James W., Gordon, Dan, Lenihan, Bill) Analytics may be descriptive,
predictive or prescriptive. Descriptive analytics is the smallest unit of analytics. Its
purpose is to summarize what happened, for instance the number of fans of the
social network page, number of likes, posts and mentions, etc. Predictive analytics
uses various statistical and historical data, data mining and modelling to predict
possible future behaviour. As for prescriptive analytics, it is a type of predictive
analytics. The difference is that it also offers “actionable data and a feedback system
that tracks the outcome produced by the action taken”. (Bertolucci, Jeff. “Big Data
Analytics: Descriptive Vs. Predictive Vs. Prescriptive”) In other words, it prescribes
an action for the business decision maker.
It should not come as a surprise that insurance companies use Big Data to make
business decisions since it is a common practice in most industries. However, what
is surprising is that they have not capitalized on it yet. The reasons are various. For
instance, the vast amount of data makes it increasingly difficult to differentiate
between essential and irrelevant data. Also, having data requires understanding
what it represents. Additionally, it costs money to have employees go over that
wealth of data and make data inputs into a certain IT system an insurer may use. In
a nutshell, Big Data raises a couple of problems to insurers. Insurers need Big Data
but they need a tool that would gather and organize smart, that is essential data.
Furthermore, insurers need smart data to observe patterns in past behaviour and
predict possible future set of behaviours. Moreover, it is painful also for consumers
10. 8
since they constantly need to make decisions about giving away lots of personal
information. (Karsten, “Zero Digital”, 2014)
Provided to Insurance Companies So that They Can Offer Products:
As mentioned above, insurers need a tool, rather an IT system that would gather and
organize smart data for them to observe patterns in past behaviour and to predict
possible future set of behaviours. Such information is particularly essential to
insurers in mature markets where insurance companies mainly compete based on
price. To put predictive analytics into use insurers need descriptive, behavioural,
interactional and attitudinal data of their existing and potential customers. (Figure 12)
If Jason, a student, were to be insured by Allianz, it may want to predict whether he
will graduate. Allianz would want to know his gender, age, marital status, whether he
is an international student (descriptive data). It would also want to know what
courses he is taking, his grades, whether he attends his classes and tutorials
(behavioral data). Examples of interactional data would be email correspondence,
whether Jason asked the registrar’s office questions about deferring graduation,
whether he logged in to the university email account and if he is active in class
forums and activities. Finally, attitudinal data could be acquired through social media
and surveys. (Hill, Brad. “What is Predictive Analysis?”)
Insurers could gather customer, operational and threat and fraud analytics.
Customer analytics is used to acquire, grow and retain customers more efficiently.
Customer analytics helps determine a target market, whether the existing customers
would respond to the marketing campaigns, whether they would be at all interested
in a particular product or if some are thinking about switching to a different insurer all
together. Operational analytics is used to manage, plan and maximize physical or
virtual asset processes. It enables organizations to plan and manage physical
infrastructure and their capital equipment, ensures the allocation of human and
financial resources in the most efficient manner to maximize their capital. As for
threat and fraud analytics, such information is used to detect suspicious, that is
potentially fraudulent insurance claims. (Figure 13) (Hill, Brad. “What is Predictive
Analysis?”)
Having such wealth of information can help insurers offer better and more
personalized coverage packages. Moreover, they will not have to compete with
price. As for the tool that insurers could use to gather predictive and/or prescriptive
analytics, it will be discussed in the change management plan.
Directly Offered by a Company to a Consumer and Companies:
There is an incentive for insurers to use analytics to determine risk more accurately,
hence more accurate premiums and more personalized products. Is there an
incentive for consumers to take part in the data gathering process? The truth is, data
is being gathered whether we want it or not by governments agencies, marketing
and academic researchers and numerous companies. Why would consumers want
to give out more information? Let us compare bank loans and insurance premiums.
Banks neither want to give risky loans nor do business with undesirable customers.
The same is true for insurance companies. It is in the interest of insurers to charge
low premiums for longer periods. Similarly, the insured do not want to pay high
premiums. Insurance companies need credible and reliable information about their
11. 9
customers that would guarantee desirable premiums based on the previously
mentioned analytics. (Figure 14) Additionally, employers offer insurance coverage to
their employees. Insurers can cooperate with companies in implementing analytics
tools as well. The reason is the same as with direct customers. Employers want to
comply with government regulations, that is offer insurance coverage worth certain
amount to their employees, not having to splurge at the same time. With the help of
analytics the needs of insurers, companies and insured can be met and satisfaction
with products and services will increase. (Figure 15 &16) We will discuss what can
be done with analytics in the change management plan. (Karsten, “Zero Digital”,
2014).
Benchmarks
Absolute Requirement Unique Selling Points
Quality of Care- Improved patient
safety and reduced medical errors.
Prevention and Disease management:
Cash back for healthy activities.
Discounts and rewards (Free fitness
assessments, discount on gym
membership, shoe discounts in
sweatshops and etc.).
Health check.
Expert advice.
Change Management Plan
What is the Change?
According to Peter Karsten, the founder and COO of Zeroº360, “health insurance
companies are more profitable if people do not claim on their insurances”. Similarly,
people are happier when they are healthy. Hence, it is in both parties’ interest to
avoid insurance claims and keep premium rates low. Zeroº’s role is to collect
personal data from any open or user-enabled third-party system into its cloud
system, called Vader. Furthermore, it would analyze the collected data and make
business suggestions to insurers. Vader data will be an addition to the systems
insurers already have since such change takes time to be fully adopted in the
insurance industry. Vader will give more thorough data and deeper insight to
insurer’s actuaries and risk analysts.
Fun
Immediate
benefit
Cell
phone
Intuitive
Easy to
invite
followers
Quick
results
Tablet
12. 10
How Will Vader Be Positioned?
Zeroº360 is entering an existing market. Gathering data is not a new practice.
However, the insurance industry is slow in catching up and adopting change. There
are many financial services giants offering similar services such as Accenture, IBM,
SAS, Deloitte, Infosys and PwC. The compelling reason to use Zeroº360 services is
that prescriptive analytics provides companies with a brilliant opportunity to be
proactive and make the best possible business decisions. Moreover, in mature
markets good data will help insurers identify new markets, develop new products and
increase sales. In addition, Vader data will help insurers in mature markets compete
based on innovative and responsive products and services rather than on merely
price. The three benefits of using Vader are low cost, ability to support all
touchpoints and unlimited ability to collect and analyze data. Zeroº360 will charge
insurers an annual fee that is just 1% of what the giants do. Insurers will get as good
a quality service and data as with IBM and PwC but will be charged significantly less.
The low cost is due to outsourcing and acquiring talent from different low cost
markets not lower quality. Vader is built with the purpose of gathering data and
analysis from all touchpoints as opposed to one or several. This in-depth insight into
each and every customer from different angles is essential to actuaries and risk
analysts. Having prescriptive analytics increases the chances of getting that one
more piece of information that could have a big impact on risk and hence, price.
Additionally, Vader’s value is in its ability to collect and analyze unlimited data – its
“inclusive purely cloud delivery” (Karsten, “Zero Digital”, 2014).
How Can Vader Be Brought to Market?
Vader is ultimately a data provider for insurers. However, to be able to prove the
quality, reliability and validity of its services Vader can be brought to the market by
reaching direct consumers, the insured, first. Vader can be offered to direct
customers who can download the app and track their physical activities, diet, sleep
patterns and stress level. All they need to do is to download the app to one of their
devices (Fitbit, Jawbone, Nike, smartphone, smartwatch, etc.) and sign up with one
of their existing social network accounts. Once that is done, data will be saved and
collected. Customers can also sync their Vader data on all their electronic devices.
The incentive for customers to use the app is to prove insurers that they consistently
lead a healthy lifestyle. This would provide insurers with strong and indubitable data
thanks to which customers will be charged lower premiums. This can be done by
promoting the app on the company website, by contacting customers over the phone
or email, when contracts are renewed and when customer service representatives
are contacted for different enquiries. The initiative will show results when 1000
customers download the app. This would cost Zeroº360 €100 per person. Thus,
Zeroº360 will have to spend €100,000 initially, in order to show insurance companies
the value of Vader and build B2B rapport.
Additionally, Vader can be introduced to the market by offering working with insurers
and organizations that offer health insurance coverage to their employees. The
initiative is to organize company wide work out challenges and at the end donate
money to charity. Peter Karsten suggests that companies organize such challenges
as “Running around the Globe”. Employees would have to set work out goals. For
instance, the finance department would run around the globe within six months.
Likewise, the sales department would do it within five months. The results would
13. 11
depend on the goals every finance and sales department employee set. As they start
the contest, their jogging data will be tracked and shared for both the individual and
the teams through Vader in order to be updated on the progress. As soon as the
teams run around the globe the employer will donate €10,000 to charity. There are
two important incentives for employers to adopt Vader and such corporate work out
challenges as running around the globe. First, when employees achieve their work
out targets employers will donate to charity. Charity donations are tax deductible and
improve/strengthen the company’s CSR position. Second, when employees
participate and actively follow their work out routines they will be charged lower
premiums. Furthermore, such initiatives strengthen the corporate culture and make
the environment more fun and meaningful. The rationale for bringing Vader with
“Running around the Globe” is, again, to show Vader’s capacity in gathering and
analyzing data.
The two projects have the purpose to conduct seed marketing, such that would not
cost much but would have an impact. In time, as trust in Vader will advance and the
sales will increase it would make more sense for Zeroº360 to spend more money on
marketing. (Karsten, “Challenge Corporate”, 2014)
Who Needs to Get Involved?
Parties that should be involved in a new project implementation can be divided in
three groups based on the order of involvement:
1. Supportive and powerful individuals.
2. Individuals whose support isn’t feasible but have the veto power.
3. Individuals who are not a hindrance to the project.
The supporters (group one) should be involved the earliest, followed by the group
two, and the rest of the organization could be involved after the major decision has
been made. The reason for starting with someone who is likely to be supportive is to
verify that the map of important individuals is correct. We avoid the resistant
individuals at the beginning because they might influence powerful individuals to
exercise their veto power.
1. Supportive and powerful individuals.
Full involvement is needed. The project team should create the guiding coalition by
putting together a group with enthusiasm and enough power to lead the change. The
change adaptation of those senior level figures occurs at the early stages of
awareness or interest.
Chief Operations Officer:
As analytics is shifting the insurance industry, it has become a day-to-day business
process in many successful companies. COO should be the one integrating others
as a centre of a network.
Chief Information Officer:
Predictive analytics is about digital data mining, data processing and analysing. The
utilization of the information technology and computer systems is extremely vital to
the company’s value optimization.
14. 12
2. Individuals whose support is not feasible but have power over the project
implementation.
They should be involved to the extent required and prevented from exercising their
veto power on the project. When the project is getting started the change initiator
should be proactive and specific about where resistance might come from.
Communication with those individuals needs to be very careful. The goal is to keep
them informed and content with the progress of the project. These individuals adapt
the change on a later stage of trial.
Chief Financial Officer:
With a fixed marketing budget, most insurance companies struggle to decide how to
allocate resources to obtain the best return on investment.
Fraud Officer:
The process of defining the useful trend and pattern through predictive analytics to
detect potentially fraudulent claim can be very sophisticated and challenging.
Compliance Officer:
Insurance companies have enormous amount of data gathered at hand, thus they
carry relevant responsibility in front of their clients as well as in front of the
government.
3. Individuals who are not a hindrance to the project.
Middle managers and other employees can be involved after the decision to proceed
has been made.
25. 23
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