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Driving business value with insurance analytics Slide 1 Driving business value with insurance analytics Slide 2 Driving business value with insurance analytics Slide 3 Driving business value with insurance analytics Slide 4 Driving business value with insurance analytics Slide 5 Driving business value with insurance analytics Slide 6 Driving business value with insurance analytics Slide 7 Driving business value with insurance analytics Slide 8 Driving business value with insurance analytics Slide 9 Driving business value with insurance analytics Slide 10 Driving business value with insurance analytics Slide 11 Driving business value with insurance analytics Slide 12 Driving business value with insurance analytics Slide 13 Driving business value with insurance analytics Slide 14 Driving business value with insurance analytics Slide 15
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Driving business value with insurance analytics

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Leading practices in applying insurance analytics for more business value from data, technologies, tools and people
Includes additional recommend resources including book on Applied Insurance Analytics, SAP BI Strategy e-book and analytics thought leadership blogs.

Driving business value with insurance analytics

  1. 1. Patricia L. Saporito, CPCU, FIDM. Twitter: patsaporito Author: “Applied Insurance Analytics, A Framework for Driving More Value from Data Assets, Technologies and Tools.” Driving Business Value through Insurance Analytics Copyright 2014. Patricia L. Saporito. All Rights Reserved.
  2. 2. Agenda Analytics is a competitive differentiator Insurance is a mature industry with products that have largely become commoditized. New opportunities and competitive differentiation will come through the applied use of analytics.  Industry Value Drivers  Analytics Challenges  Leading Practices  Analytic Evolution  Additional Resources Copyright 2014. Patricia L. Saporito. All Rights Reserved. 2
  3. 3. Insurance Industry Value Drivers Analytics Use Is Siloed Today Increased Revenue Decreased Expenses Reduced Risk Analytics is most highly leveraged in the evaluation of risk, especially in actuarial and in underwriting. They are used less extensively for customer oriented areas such as marketing and distribution. Source: Strategy Meets Action, “Data & Analytics in Insurance”, 2014 Copyright 2014. Patricia L. Saporito. All Rights Reserved. 3
  4. 4. Analytics Driven Insurer Analytics Investment ROI Values and manages data as a strategic asset Applies analytics in both strategic planning and operational processes Makes analytics part of the corporate DNA “ ” Organizations earn an average or $10.66 for every dollar spent on deployment of Analytics Source: Nucleus Research December 2011. Copyright 2014. Patricia L. Saporito. All Rights Reserved. 4
  5. 5. Key Analytics Challenges Apply Analytics to Decisioning Lack of an analytic culture Lack of business alignment Lack of analytics and data governance “ ” The stone age was marked by man's clever use of crude tools; the information age, to date, has been marked by man's crude use of clever tools. Anon Copyright 2014. Patricia L. Saporito. All Rights Reserved. 5
  6. 6. Partial Value: Siloed analytics Finance Marketing Claims Under- writing Sales Product. Develop. Most insurers look at data and analytics by individual business process, instead of leveraging across business processes. Disparate Data and Analytics Copyright 2014. Patricia L. Saporito. All Rights Reserved. 6
  7. 7. Optimize Value: Integrated analytics Integrate and apply across all business processes. Information Business rules, data and KPIs should be leveraged across business Example: The business rules used in claim detection fraud can also be applied upfront during the underwriting process. Copyright 2014. Patricia L. Saporito. All Rights Reserved. 7
  8. 8. Best Practice: Create an Analytics Culture 4 Key Tools to Creating an Analytics Culture Find an Executive Business Sponsor, a C-Level executive Champion analytics at the senior management level; lead by example from the top down Share success stories for visibility and ongoing funding  Skills  Incentives  Communication  Organization Copyright 2014. Patricia L. Saporito. All Rights Reserved. 8
  9. 9. Analysts Executives Culture enables people; supports analytic maturity development Developers Plan Explore Enrich Explain Monitor Design Validate DATA TOOLS The average person today processes more data in a single day than a person in the 1500’s did in a entire lifetime. The Human Face of Big Data ” “ Democratize Analytics with Data and Tools Govern Enable Enablers: Training, Support, Communities of Practice Copyright 2014. Patricia L. Saporito. All Rights Reserved. 9
  10. 10. Best Practice: Develop a Business Driven BI Strategy Technical Success, but a Business Failure? Capture Business Requirements through a Business Discovery Use BI Governance Steering Committees to prioritize and align needs Secure committed business analysts and data stewards for ongoing engagement Many a BI or data warehouse initiative has failed to meet business needs. Initiatives must show business value from the start. Copyright 2014. Patricia L. Saporito. All Rights Reserved. 10
  11. 11. BI Strategy: 5 Core Areas Publish a BI Strategy Document Provide regular updates to steering committees; create a BI Dashboard to track metrics Create a BI Portal and Communities of Interest for all stakeholders Communication is Critical to BI Success Objectives & Scope Business Needs Value Measurement & Management Information Structure & Technologies Organization & Governance BI Strategy Copyright 2014. Patricia L. Saporito. All Rights Reserved. 11
  12. 12. Best Practice: A BI Competency Center Align Business and IT; Address People and Processes Operationalizes the BI Strategy Responsible for BI and Data Governance Defines initial business case justification; conducts post implementation value assessment BICCs are not new; they’ve been around for 10+ years. Many began and remain IT program management offices. Today’s BICCs are the glue between IT and the business. Copyright 2014. Patricia L. Saporito. All Rights Reserved. 13
  13. 13. Industry Analytics Leaders Selection Criteria Analytics Leadership Continuous investment in analytics Recognized excellence in applying analytics in their businesses Copyright 2014. Patricia L. Saporito. All Rights Reserved. 14
  14. 14. Take Your Analytics to the Next Level Keys to Analytic Maturity • What else can your existing data tell you? • What additional insights could you gain if you added new data sources to your existing data? • How can you apply analytics into operational processes and daily decisions? Analytics Leadership Expanding from analytic silos to enterprise analytics Incenting and rewarding analytic skills development and application Copyright 2014. Patricia L. Saporito. All Rights Reserved. 15
  15. 15. Additional Resources Pat Saporito Twitter: patsaporito psaporito1@yahoo.com My day job is in SAP’s Global Center of Excellence for Analytics. (Opinions expressed here are my own.) Prior to SAP, I led the insurance and healthcare industry consulting area at Teradata. I headed up META Group’s Insurance Industry Research Service. I write and speak regularly on the topic of analytics. In addition to various blogs, I have been a frequent contributor to Best ‘s Review. Read Applied Insurance Analytics (in print & electronic versions) on Amazon or FT Press. Download the SAP BI e-book (no product, just thought leadership!) Subscribe to The Decision Factor, an analytics thought- leadership blog or SAP Radio Game-Changers program. Copyright 2014. Patricia L. Saporito. All Rights Reserved. 16
  • MelissaWells27

    Nov. 29, 2021

Leading practices in applying insurance analytics for more business value from data, technologies, tools and people Includes additional recommend resources including book on Applied Insurance Analytics, SAP BI Strategy e-book and analytics thought leadership blogs.

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