Learn how external insurance data and analytics is changing everything, from pricing risk to interacting with customers. Read more: https://www.accenture.com/us-en/insight-harnessing-external-data-stream
This presentation provides a brief insight into the need to undertake an analytics project, particularly as it pertains to claims management and fraud. To this end the presentation will touch on the general challenges confronting the property and casualty insurance industry, as well as the challenges and lessons learnt from early adopters of business intelligence. In the face of these challenges analytics holds the potential to generate substantial value as evidenced by several short case study examples. The presentation concludes with a look at the issue of fraud as it pertains to the industry and some of the metrics that are influenced by it.
The presentation draws extensively, and focuses on, the work and viewpoints from industry participants including; Accenture, IBM, Ernst & Young, Strategy Meets Action, Ordnance Survey, Gartner, Insurance Institute of America, American Institute for Chartered Property Casualty Underwriters, International Risk Management Institute and John Standish Consulting. References are included on each slide as well as on the “References” slides at the end of the presentation.
Please find here our first Insurance Review on Digital Disruption of the Insurance sector. We've put together the best, most shared and liked articles on this topic. All articles have been published before on our Financial Services blog
Unbundling the Insurance Value Chain - Disruption in the Insurance Sector - The 7th. International Istanbul Insurance Confrence - Prof. Dr. Selim YAZICI (2016)
This presentation provides a brief insight into the need to undertake an analytics project, particularly as it pertains to claims management and fraud. To this end the presentation will touch on the general challenges confronting the property and casualty insurance industry, as well as the challenges and lessons learnt from early adopters of business intelligence. In the face of these challenges analytics holds the potential to generate substantial value as evidenced by several short case study examples. The presentation concludes with a look at the issue of fraud as it pertains to the industry and some of the metrics that are influenced by it.
The presentation draws extensively, and focuses on, the work and viewpoints from industry participants including; Accenture, IBM, Ernst & Young, Strategy Meets Action, Ordnance Survey, Gartner, Insurance Institute of America, American Institute for Chartered Property Casualty Underwriters, International Risk Management Institute and John Standish Consulting. References are included on each slide as well as on the “References” slides at the end of the presentation.
Please find here our first Insurance Review on Digital Disruption of the Insurance sector. We've put together the best, most shared and liked articles on this topic. All articles have been published before on our Financial Services blog
Unbundling the Insurance Value Chain - Disruption in the Insurance Sector - The 7th. International Istanbul Insurance Confrence - Prof. Dr. Selim YAZICI (2016)
Transforming Insurance Risk Assessment with Big Data: Choosing the Best PathCapgemini
Insurers are realizing that big data has the potential to create competitive advantage. There is a gold mine of information residing across the large volumes of data available in multiple sources and disparate formats, if only it can be efficiently mined to support key operational decisions and improve the customer experience. Commercial risk assessment is data intensive and ripe for the incorporation of real-time external data. In this paper, we explore the ways commercial insurers can gain accurate and comprehensive risk assessments when underwriting policies by using big data.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
Modernizing the Insurance Value Chain: Top Three Digital ImperativesCognizant
As nontraditional companies enter the insurance scene and insurtechs launch novel products, incumbents need to accelerate innovation and differentiate the customer journey to remain in the game. Here are three strategies to achieve these goals, with a brief look at a few companies well on their way.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
Fraud detection is a popular application of Machine Learning. But is not that obvious and not that common as it seems. I'll tell how QuantUp implemented it for WARTA insurance company (a subsidiary of Talanx International AG).
The models developed gave between 10% and 30% of reduction of losses. The project was not a simple one because of the complex process of handling claims and using really rich dataset. The tools applied were R (modeling) and DataWalk (data peparation). You will learn what is important in development of such solutions in general, what was difficult in this particular project, and how to overcome possible difficulties in similar projects.
Listen to an experienced, global panel of insurance professionals present, discuss and answer your questions on the theme of “Data & Analytics from a Life & Health perspective”.
Brought to you by The Digital Insurer and sponsored by KPMG.
Using Accenture Research methodologies - Economic Value Modelling (EVM) and survey – this thought leadership paper quantifies the digital opportunity for South Africa’s short-term insurance industry to 2020. By leveraging digital technology, Accenture estimates that short-term insurance providers in South Africa can increase their gross written premiums (GWP) by R115.2 billion by 2020.
Employing Analytics to Automate and Optimize Insurance DistributionCognizant
Today's insurers have the opportunity to employ advanced analytics to automate and optimize distribution, analyze and track customer patterns, enhance marketing campaigns, better manage agents and deliver more value to the business and its customers.
AI Underwriting Case Study for Life Insurance company Artivatic.ai
AUSIS (AI Underwriting Platform) helped a Life Insurance Giant in India to improve their complex underwriting journey to be simple, automated & in real- time.
Life Insurance companies are regulated by IRDA in India and also life insurance companies uses old age legacy processes, systems, risk assessment models and rule based outcome.
To know more, write to contact@artivatic.ai or visit www.artivatic.ai
A deep dive look at the connected insurance technology sector, providing an insurance startup map, trends/insights, and relevant company profile examples.
Analytics is a two-sided coin. While on one side, it uses
descriptive and predictive models to gain valuable knowledge from data, i.e. data analysis, on the other side, it provides insight to recommend action or guide decision making, i.e. communication
Transforming Insurance Risk Assessment with Big Data: Choosing the Best PathCapgemini
Insurers are realizing that big data has the potential to create competitive advantage. There is a gold mine of information residing across the large volumes of data available in multiple sources and disparate formats, if only it can be efficiently mined to support key operational decisions and improve the customer experience. Commercial risk assessment is data intensive and ripe for the incorporation of real-time external data. In this paper, we explore the ways commercial insurers can gain accurate and comprehensive risk assessments when underwriting policies by using big data.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
Modernizing the Insurance Value Chain: Top Three Digital ImperativesCognizant
As nontraditional companies enter the insurance scene and insurtechs launch novel products, incumbents need to accelerate innovation and differentiate the customer journey to remain in the game. Here are three strategies to achieve these goals, with a brief look at a few companies well on their way.
Future-Proofing Insurance: Deepening Insights, Reinventing Processes and Resh...Cognizant
Insurance carriers face an imminent sea change in how their mission-critical processes remain efficient, agile and innovative. Ensuring relevance in the future requires redefined business models fueled by heightened productivity across fibusiness as usualfl activities.
Fraud detection is a popular application of Machine Learning. But is not that obvious and not that common as it seems. I'll tell how QuantUp implemented it for WARTA insurance company (a subsidiary of Talanx International AG).
The models developed gave between 10% and 30% of reduction of losses. The project was not a simple one because of the complex process of handling claims and using really rich dataset. The tools applied were R (modeling) and DataWalk (data peparation). You will learn what is important in development of such solutions in general, what was difficult in this particular project, and how to overcome possible difficulties in similar projects.
Listen to an experienced, global panel of insurance professionals present, discuss and answer your questions on the theme of “Data & Analytics from a Life & Health perspective”.
Brought to you by The Digital Insurer and sponsored by KPMG.
Using Accenture Research methodologies - Economic Value Modelling (EVM) and survey – this thought leadership paper quantifies the digital opportunity for South Africa’s short-term insurance industry to 2020. By leveraging digital technology, Accenture estimates that short-term insurance providers in South Africa can increase their gross written premiums (GWP) by R115.2 billion by 2020.
Employing Analytics to Automate and Optimize Insurance DistributionCognizant
Today's insurers have the opportunity to employ advanced analytics to automate and optimize distribution, analyze and track customer patterns, enhance marketing campaigns, better manage agents and deliver more value to the business and its customers.
AI Underwriting Case Study for Life Insurance company Artivatic.ai
AUSIS (AI Underwriting Platform) helped a Life Insurance Giant in India to improve their complex underwriting journey to be simple, automated & in real- time.
Life Insurance companies are regulated by IRDA in India and also life insurance companies uses old age legacy processes, systems, risk assessment models and rule based outcome.
To know more, write to contact@artivatic.ai or visit www.artivatic.ai
A deep dive look at the connected insurance technology sector, providing an insurance startup map, trends/insights, and relevant company profile examples.
Analytics is a two-sided coin. While on one side, it uses
descriptive and predictive models to gain valuable knowledge from data, i.e. data analysis, on the other side, it provides insight to recommend action or guide decision making, i.e. communication
Building a Code Halo Economy for InsuranceCognizant
By finding meaning in the digital data that accumulates around people, processes, organizations and things, insurers can simultaneously reinvent how they operate and reshape their customers' experience.
Catching the Consumer Data Wave: A New Opportunity in the Insurance EcosystemCognizant
With the profusion of insurance consumer data coming online, the role of data intermediaries is emerging as a key player in the insurance ecosystem. Insurance distributors are especially well-suited to take the lead in analyzing leveraging user data and sharing insights to drive innovative product offerings and growth.
To meet customers’ needs and deliver profitable growth, insurers must embrace the potential of digital underwriting. Ninety percent are investing in the function, but are they making the right investments? This report proposes a practical plan to set underwriters on the path to digital transformation. It includes the attributes they need, how they can make better use of analytics, and new technologies worth considering.
How Life & Annuity Companies Can Embrace Modern Platforms to Boost Direct-to-...Cognizant
Life and annuity (L&A) insurers seeking to enhance their direct-to-consumer reach should first simplify operations using modern, hosted, rules-based platforms, and deploy the panoply of digital tools and services and work with insurtechs when suitable.
7 Ways Insurance Brokers Should Approach InsurTechSiren Group
“InsurTech” is a term used quite often these days – a spin-off of the even more popular word “FinTech.” It refers to technologies and platforms. These platforms can help optimize any of the principles for success or requirements of insurance.
InsurTech encompasses companies that provide insurance, but engage technology in a user-centric way.
Here are 7 ways of making InsurTech the heart of your business:
The insurance industry – from product development to underwriting to claims – is being fundamentally transformed by AI technologies. Although some companies are investing aggressively in AI to slash costs while also enhancing the customer experience, most insurers will need to accelerate their efforts or risk discovering that it has become too late to catch up.
Fixing the Insurance Industry: How Big Data can Transform Customer SatisfactionCapgemini
Insurers are facing a moment of truth. Customer satisfaction levels have hit worryingly low levels. According to a survey conducted by Capgemini in 2014, less than a third of customers globally are satisfied with the services of their insurance providers. Traditional insurers also face competition from new entrants who are determined to meet customer expectations. Non-traditional competitors, such as ecommerce majors and technology startups, are leveraging their data-rich customer interactions to create and sell insurance products.
Surprisingly, insurers seem to have overlooked the impact of Big Data on improving customer experience as they often focus their Big Data efforts on detecting fraudulent claims and improving underwriting profitability. In fact, only 12% of insurers consider the enhancement of customer experience as a top Big Data priority. This is startling given the poor levels of customer satisfaction in the insurance industry. In this research, we examine how insurers can effectively leverage customer data to improve customer satisfaction.
Digital technology has changed how people shop, bank, travel, and live. Real-time location services, free global communications, and information on demand have become the norm, raising consumer expectations for more personalized customer experiences, when and where they want them. The insurance industry is no exception, as heightened consumer expectations are driving innovation and creating opportunities for new entrants to challenge industry bellwethers. As a result, consumer-facing industries have had to adapt or perish.
Many insurers are struggling to enhance their customer experience while facing stiff competition from digital savvy, data-intensive, agile insurtech companies. The digital disruption is radically altering how insurance is bought, distributed, serviced, commercialized, and ultimately, perceived by the general public. The result is the emergence of insurtech companies engaging customers in ways traditional insurance companies have never offered before.
The traditional model of insuring customers for specific events (or circumstances) is being supplanted by a new model based on a lifecycle of customer needs. Equally important is the capability to go from responsive to predictive practices more accurate than conventional actuarial techniques.
The enabler of these new capabilities is effectively leveraging the expanding quantities, sources, and distributions of data. Doing so requires innovative data-driven technologies designed to discover and integrate this data with semantically enriched data fabrics that strengthen the insurance industry’s fundamental use cases—making new ones possible.
Etude PwC "Insurance 2020" : dommage et digital (2014)PwC France
http://bit.ly/AssuranceEnLigne
Pour les compagnies d’assurance, multiplier les échanges numériques avec les clients est un élément essentiel pour les fidéliser et se différencier des concurrents. C’est ce que révèle le rapport de PwC "Insurance 2020: The digital prize – Taking customer connection to a new level". Le cabinet d’audit et de conseil a interrogé plus de 9 000 consommateurs dans le monde, dont 500 français.
Open Insurance - Unlocking Ecosystem Opportunities For Tomorrow’s Insurance I...Accenture Insurance
For early adopters, open insurance offers new revenue streams, increased customer engagement and continued market relevance.
Learn more: https://www.accenture.com/us-en/insights/insurance/open-insurance
Open Insurance - Unlocking Ecosystem Opportunities For Tomorrow’s Insurance I...Accenture Insurance
For early adopters, open insurance offers new revenue streams, increased customer engagement and continued market relevance.
Learn more: https://www.accenture.com/us-en/insights/insurance/open-insurance
The future of insurance distribution: New models for a digital customerAccenture Insurance
This report argues that incumbents need to embrace digital disruption, form partnerships and adopt innovative technologies to improve customer engagement and create new opportunities for growth. It introduces five new distribution models that insurers should consider, as well as six ‘lenses’ through which they can be evaluated.
Your insurance clients know that far-sighted players are already confronting the future of insurance distribution. Use this report to help them assess their options.
As well synthesized by Meg Whitman (CEO at Hewlett-Packard) “we’re now living in an Idea Economy, where the ability to turn an idea into a new product or service has never been easier”. This impact is pervasive on all industries, any company has to achieve enough agility to respond to market opportunities and threats and quickly turn ideas into reality.
For some years now, the “digital”-driven projects have become a priority for all the Insurance Groups. Let me add that here the term “digital” refers to several important aspects starting with a digitalized customer experience, which is completed by digital/technological processes aimed at improving the relationship with the clients and with the mid-term objective of maximizing the single client’s profitability.
Insurers are beginning - and those who are not doing so should start – to give serious thought to how they can build their strategy to incorporate the IoT into the insurance value chain.
The Internet of Things (IoT) is “the interconnection via the Internet of computing devices embedded in everyday objects, enabling them to send and receive data.” The most important factor in the IoT “equation” is the data – which is the main element providing value to the insurance company if harvested and analyzed in an adequate manner. In product development there should be a data collection & analysis approach embedded in the business model itself, otherwise the strategy will lack in bringing the desired added value. Having a “data mindset” in all the stages of the business will ensure that the implemented model will have the capacity to gather and analyze the high quantity of data provided by the interconnected devices and environments.
As Matteo Carbone who is an expert in the field says in his article, ultimately telematics is the integrated use of informatics and telecommunications; it is about registering, storing and analyzing data via telecommunication devices.
“Telematics could be one of the most relevant digital innovations in the insurance industry directly impacting the technical results. Due to the pervasive diffusion of the Internet of Everything, this approach could be extended from motor insurance to other insurance businesses.”
Similar to Harnessing the data exhaust stream: Changing the way the insurance game is played (20)
Accenture's report explains how natural language processing and machine learning makes extracting valuable insights from unstructured data fast. Read more. https://www.accenture.com/us-en/insights/digital/unlocking-value-unstructured-data
Accenture's report explains how creating effortless experiences are so simple and easy with our data-driven strategy framework to drive growth. Read more.
Whole-brain leadership prepares C-suites for the digital challenges ahead, ensuring seamless growth and high-value problem solving capabilities. Read more.
Wise Pivot is a strategy fit for the digital age that can help companies pursue new growth opportunities. Read more on how to choose your pivot wisely.
Wise Pivot is a strategy fit for the digital age that can help companies pursue new growth opportunities. Read more on how to choose your pivot wisely.
Accenture's Applied Customer Engagement (ACE) is a proven approach to re-thinking and revitalizing contact center operations for the digital era. Read more.
ALIP customers Get More…more product launches, more out-of-the-box functionality and efficiency, more personalized digital capabilities, more delivery “know how”. Read more.
Way Beyond Marketing - The Rise of the Hyper-Relevant CMOAccenture Insurance
Accenture's CMO Survey unveils some important insights on the role of the new CMO and how the role is changing in the digital age. Read more: https://www.accenture.com/us-en/insights/consulting/cmo
Business disruption is a growing challenge for all industries. See how your industry could be affected by disruption with Accenture's disruptability index.
The Next Step For Aritificial Intelligence in Financial ServicesAccenture Insurance
As financial services firms strive to transform their businesses for a digital world, realize efficiencies, improve the customer experience and revitalize their growth, they increasingly see artificial intelligence-based (AI) technologies as key. For firms, the next wave of AI innovation are artificial neural networks.
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Attending a job Interview for B1 and B2 Englsih learnersErika906060
It is a sample of an interview for a business english class for pre-intermediate and intermediate english students with emphasis on the speking ability.
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Enterprise Excellence is Inclusive Excellence.pdfKaiNexus
Enterprise excellence and inclusive excellence are closely linked, and real-world challenges have shown that both are essential to the success of any organization. To achieve enterprise excellence, organizations must focus on improving their operations and processes while creating an inclusive environment that engages everyone. In this interactive session, the facilitator will highlight commonly established business practices and how they limit our ability to engage everyone every day. More importantly, though, participants will likely gain increased awareness of what we can do differently to maximize enterprise excellence through deliberate inclusion.
What is Enterprise Excellence?
Enterprise Excellence is a holistic approach that's aimed at achieving world-class performance across all aspects of the organization.
What might I learn?
A way to engage all in creating Inclusive Excellence. Lessons from the US military and their parallels to the story of Harry Potter. How belt systems and CI teams can destroy inclusive practices. How leadership language invites people to the party. There are three things leaders can do to engage everyone every day: maximizing psychological safety to create environments where folks learn, contribute, and challenge the status quo.
Who might benefit? Anyone and everyone leading folks from the shop floor to top floor.
Dr. William Harvey is a seasoned Operations Leader with extensive experience in chemical processing, manufacturing, and operations management. At Michelman, he currently oversees multiple sites, leading teams in strategic planning and coaching/practicing continuous improvement. William is set to start his eighth year of teaching at the University of Cincinnati where he teaches marketing, finance, and management. William holds various certifications in change management, quality, leadership, operational excellence, team building, and DiSC, among others.
India Orthopedic Devices Market: Unlocking Growth Secrets, Trends and Develop...Kumar Satyam
According to TechSci Research report, “India Orthopedic Devices Market -Industry Size, Share, Trends, Competition Forecast & Opportunities, 2030”, the India Orthopedic Devices Market stood at USD 1,280.54 Million in 2024 and is anticipated to grow with a CAGR of 7.84% in the forecast period, 2026-2030F. The India Orthopedic Devices Market is being driven by several factors. The most prominent ones include an increase in the elderly population, who are more prone to orthopedic conditions such as osteoporosis and arthritis. Moreover, the rise in sports injuries and road accidents are also contributing to the demand for orthopedic devices. Advances in technology and the introduction of innovative implants and prosthetics have further propelled the market growth. Additionally, government initiatives aimed at improving healthcare infrastructure and the increasing prevalence of lifestyle diseases have led to an upward trend in orthopedic surgeries, thereby fueling the market demand for these devices.
Taurus Zodiac Sign_ Personality Traits and Sign Dates.pptxmy Pandit
Explore the world of the Taurus zodiac sign. Learn about their stability, determination, and appreciation for beauty. Discover how Taureans' grounded nature and hardworking mindset define their unique personality.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Unveiling the Secrets How Does Generative AI Work.pdfSam H
At its core, generative artificial intelligence relies on the concept of generative models, which serve as engines that churn out entirely new data resembling their training data. It is like a sculptor who has studied so many forms found in nature and then uses this knowledge to create sculptures from his imagination that have never been seen before anywhere else. If taken to cyberspace, gans work almost the same way.
2. Insurers have been pioneers in utilizing
data and analytics to make underwriting
decisions, price risks, predict losses
and manage claims payouts
2
Traditionally, carriers have relied on their own data, and upon
structured information from various bureaus and agencies to make
decisions. The game has recently changed, however, and the pace of
change is rapid. Insurers are finding that they must creatively explore,
mine and harness external data to remain competitive, to convert new
opportunities for growth and to achieve improvements in the loss ratio.
The flood of external data is transforming not only the way insurers
evaluate and price risk, but the way they interact with customers,
transact business, and design products and services. New data is
coming from sources such as:
• Government and third-party databases that have been digitized
and made available to the public;
• Comments, product reviews and discussions on social media;
• The Internet of Things, in the form of telematics information from
automobiles, input from connected homes and visual information
from new devices such as drones; and
• Contact information from call centers and company websites.
These vast new data streams create opportunities for insurers
to identify and act upon the insights hidden within this sea of
information, but they also open the door for new business models
and competitors.
3. There are some parallels between what is
happening in the insurance industry and trends
evident in the advertising industry. Traditional
advertising, as recently as five years ago, was
based on loosely targeted television, radio and
print advertisements, developed using limited
factors such as target audience demographics,
dayparts and product attributes. With the
emergence of rich digital media (those that offer
consumers a variety of interactive features),
advertisers are now defining micro-segments
and generating highly relevant, personalized
advertising messages, delivered across many new
platforms to individual consumers. The result is
a higher, more measurable return on each media
dollar invested. Many advertising messages are
now purchased online and in real time via an
auction system, after the advertiser has identified
key customer attributes.
Like advertisers, insurers can expect to undergo
similarly dramatic changes in the ways they
market, price, and deliver products. As seen in
Figure 1 below, we estimate that astute insurers
can increase profitability by between 16 and 21
combined ratio points by using analytics to more
precisely measure risk in underwriting, anticipate
and prevent losses with real-time monitoring,
and increase sales via more targeted distribution
strategies. Insurers that cannot or are unwilling
to act, however, will be unable to identify and
pursue the best risks because they simply will not
know where to look.
Figure 1: Analytics Value Proposition
Anti-fraud
Portfolio management
Operational efficiency
Based on our experience, an increase of 16-21 percentage points in
insurance profit can be captured by analytics leaders
Marketing
• Marketing effectiveness
• Increased customer retention
• Increased cross- and up-selling
• Fraud analytics
• Fraud identification and mitigation
• Improved internal audit mechanisms
• Better risk monitoring
• Improved UW and pricing
• Process optimization
• Channel optimization
16%-21%
9-11%
2-3%
2-3%
3-4%
3
4. The insurance industry has experienced an influx of new
competitors. Recently, for example, insurance aggregators have
focused on simplifying the purchase of insurance products with
modern, fast, mobile-first design and providing a frictionless
customer experience. Many insurers have had to adapt their
systems to integrate with aggregators, both to generate high
volumes of quotes on a near-real-time basis and to slash prices to
be included in the top tier of cheapest quotes.¹
The entry of non-traditional competitors onto the insurance
playing field does not necessarily signal the demise of traditional
insurance companies. In fact, insurers have many significant
advantages when it comes to competing against companies
from outside the industry. They have, for example, developed
vast quantities of proprietary data, and have used this data to
successfully price risks.
In addition, most insurers have created a proven methodology for
pricing risks and processing claims, along with acquiring a deep
understanding of the specific industries or business segments
they serve. This proprietary data, technical expertise and industry
knowledge can be combined with new sources of external data
to create deeper insight into risk factors and substantially
improve loss ratios.
Insurers should focus on three core sources of value: First,
continue to develop proprietary insights into risk selection and
pricing. This will remain critically important, as the loss ratio will
continue to drive the lion’s share of economic value for insurers.
Second, use internal and external data to improve the ability to
segment the available market and improve the purchasing and
servicing experience for both existing and potential customers.
Third, increase efficiency and reduce overall costs by using data to
digitize and/or automate existing processes.
The data horizon extends even further for insurers. Data-driven
insights make it possible to create new products and new
revenue streams, typically in partnership with players from
outside the industry.
Insurers can reduce
overall costs by
using data to
digitize and/or
automate existing
processes.
4
5. Some insurers are already harnessing external data to achieve
these objectives.
For example:
• Google’s Nest business has teamed with Liberty Mutual and
American Family Insurance to help customers offset the cost of a
Nest Protect smoke detector and provide a monthly discount on
homeowner insurance. Liberty Mutual offers additional discounts
for customers who choose to electronically share information
demonstrating that their smart home devices are functioning
properly. The program has expanded to ten states in the U.S.²
• Policyholders of U.S. insurer John Hancock can earn discounts of
up to 15 percent on their life insurance policy if they agree to share
data from Internet-connected Fitbit devices. The fitness tracking
service is part of John Hancock’s partnership with Vitality, a service
provider integrating wellness benefits with life insurance.³
• Global insurer AIG has made a strategic investment in Human
Condition Safety, a maker of wearable devices designed to monitor
the movements of employees in factories, construction sites and
other hazardous workplaces to reduce on-the-job accidents.
Human Condition Safety is creating tools incorporating artificial
intelligence, building information and cloud computing that help
workers, their managers, and worksite owners prevent injuries.⁴
5
6. The increased availability of data has helped companies create
what has been termed a “self-service” analytics environment. This is
a decentralized, business-led setting in which analysts can rapidly
access a wide range of unstructured data sets and new technologies,
and then build their own models and analytics. Analysts now have a
wealth of data at their fingertips that they can slice and dice to
drive new insights; they can quickly iterate through data sets and
test ideas to reach the right answer in a matter of hours. Rather
than controlling what analysts can access, leading insurers are
pushing for access to useful external data and the technologies to
get insights right away.
There is also an increased requirement for robust data quality
management, with rapid, near-real-time feedback mechanisms if
issues or inaccuracies emerge within external data sources. This will
become all the more important as the business becomes increasingly
dependent on external data and the associated analytical models
and processes. As Peter Harmer, Chief Executive Officer of IAG noted,
“Our emerging view is that data is ubiquitous and there’s limited
value in the data itself. The value resides in the insights that you can
draw from the data.”
This environment also calls for new approaches to dealing with
the workforce. Analytics can no longer be the exclusive territory
of data scientists; instead, larger segments of the workforce need
to be trained to use analytics to add value to marketing and core
insurance functions. They also need to be encouraged to demand the
right support from the right skilled colleagues, based on their unique
insight into front line challenges and opportunities. Jordi Pages,
CEO in AIDE (assistance company in Zurich Spain) noted, “Skills
sought for managers during the last few years have been much more
focused on how you manage your team, how you understand the
dynamics of your job, or how you make the right decisions based on
your experience, not on how you use data. This is a game-changing
event for managers.” As described in Accenture’s Technology Vision
for Insurance 2016, the goal should be a “liquid workforce” that
incorporates internal and external resources and readily adapts to
new skills and tasks.
Using external data and
analytics to create value
6
7. Insurers are working with external data in many areas already, from
marketing to underwriting to claims management to pricing. For
example, Enigma, a New York based tech startup and a graduate of
Accenture’s FinTech Innovation Lab, provides property and casualty
insurers with real-time notifications about changes in the status of
commercial buildings, including the addition of kitchens, boilers and
other features that change the building’s risk profile. Insurers using
the Enigma product gain a competitive edge over those relying upon
often-erroneous self-reported data to underwrite and price policies.
Signals, another Enigma product, gives insurers a snapshot and score
of the health of a business based on its access to and evaluation
of public data sources. A startup called Drive Spotter is developing
a video analytics platform to reduce driving accidents by providing
driving forensics and alerts to insurance companies and vehicle
fleets. It plans to integrate big data from telemetry, weather, and
road condition sources and create dashboards for training, actuaries,
operations, and other user personas. The technology will also be used
to ensure drivers can assume control of automated vehicles.⁵
Similarly, insurers have been using social media for some time to
interact with customers and keep them informed about the status
and progress of their claims. Now, however, more and more of
insurers’ special investigation units are using social media data to
flag potential fraud in workers’ compensation and disability claims.
And Lenddo, also a graduate of the FinTech Innovation Lab, uses
individuals’ social network patterns to establish creditworthiness and
help make real-time underwriting decisions.
Overall, insurers are investing hundreds of millions of dollars in
financial technology or “fintech” startups aimed at rebuilding the
industry’s technology base. CB Insights estimates, in fact, that
insurance-related technology startups attracted almost four times
more investment in 2015 than they did in the previous year.⁶
Changing the landscape
for insurers
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8. Changing the landscape
for Insurers
Armed with analytics and insights drawing upon
new data sources, insurers can explore entirely
new types of business that have been created by
digital disrupters in a number of areas. They can
build partnerships with these disrupters, both
to gain early access to the data they generate
and to offer products tailored to their customers’
needs (often the millennials and early adopters
that insurance companies struggle most to
engage, according to Gallup.⁷)
For example:
• Homeowners renting out their homes on a
short-term basis via Airbnb or similar services
often want and need additional home
insurance, as their standard homeowners’
policies typically do not cover such rentals.
Centraal Beheer, a Dutch insurance carrier and
part of the Achmea group, has since July 2015
included insurance for sharing one’s home
through platforms like Airbnb in its standard
home insurance package, without customers
having to pay extra.
• Berkshire Hathaway Travel Insurance’s AirCare
product can help travelers rebook a missed
flight or find lost luggage, using Federal
Aviation Agency (FAA) and other databases.
AirCare also pays bonuses to make insured
travelers’ flight delays more comfortable.
• Cuvva, a Scotland-based broker, launched a
product in October 2015 that offers temporary
insurance to those who have borrowed
someone else’s car for a short period (for a
weekend away, an errand, or an airport drop-
off). Customers select for how long they require
cover, and the app then generates a one-off
price. Coverage starts immediately and can be
extended using the app.
• Passengers (and drivers) of ride-sharing services
might wish to buy more coverage, even on a
spot or one-time basis. BlaBlaCar, a ridesharing
platform, has teamed with AXA to provide free
additional insurance specially designed for
long-distance ridesharing. It is offered as an
addition to drivers’ existing insurance policies
for journeys across France organized through
BlaBlaCar’s online booking system. USAA,
MetLife, Erie, Progressive and GEICO have also
launched, or are planning to launch, offerings in
the ridesharing market.
• Dutch insurer Aegon N.V.’s Kroodle insurance
is sold exclusively through Facebook
(presumably providing Aegon with extensive
new sources of data on customers using this
channel). Kroodle currently offers Boodle
Kroodle (household insurance), Casa Kroodle
(home insurance), and Trouble Kroodle (liability
insurance). The initial success of the product
has prompted Aegon to add College Kroodle for
students and Travel Kroodle.
Opening new horizons
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9. • Insurers are using mobile apps with location
awareness to create a simple, frictionless sales
channel to offer short-term insurance policies
designed to protect customers when they
engage in infrequent activities. Tokio Marine
& Nichido Fire Insurance’s partnership with
telecom service provider NTT Docomo in Japan,
for example, offers “hole in one” insurance
when it detects that users are on a golf
course, as the cost of drinks and other social
obligations to a Japanese golfer who scores
a hole in one can be exorbitant. AppSichern,
offered by SituatiVe in Germany, sells short
term policies in four categories – Mobility (for
car sharing or insurance for additional drivers),
Sports and Events (for bike trips, water sports
and other activities), Travel, and Family & Kids
(for school trips, daycare centers and
other situations).
• In the contractor or “gig” economy, more
people are leaving traditional employment and
working as free agents. This can offer workers
significant benefits in terms of flexibility of
work hours, location and schedule. However,
it leaves workers without some of the intrinsic
economic benefits that employees take for
granted, such as retirement benefits, sick pay,
maternity leave, overtime, health insurance,
liability coverage, or workers’ compensation
coverage. A tech startup called Slice Labs
has raised seed funding to offer insurance for
on-demand workers and employers, with the
insurance made available on a transactional basis.
• Metromile entered the auto insurance market
as a newcomer with no proprietary data, but
quickly gained customers (and created data) by
developing a new insurance distribution model
(selling car insurance by the mile) that was very
attractive to a certain subset of the market.
Eventually, Metromile will have compiled
enough of its own data to start competing for
other motor insurance segments.
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10. Making the next move
One of the best things about the data revolution
is that relatively modest investments can generate
significant returns. Programs can be designed to
be almost entirely self-funding. We have identified
a number of steps that insurers can take to
establish momentum and build economic value by
harnessing external data streams.
These include:
1. Gathering internal data first
Companies need to link up and tap into
all internal data sources, which typically
exist in separate domains for claims, policy
administration, finance, billing and other
functions. This is a critical first step, which
should be undertaken before new external
sources of data are explored. Accenture recently
published a study in partnership with Stevens
Institute of Technology⁸ that highlighted
how internal data could be combined with
new analytical techniques such as spatial risk
diffusion, to rethink pricing approaches.
2. Identifying new data sources
Insurers can start small by exploring new
external data sources that can be used to
supplement existing underwriting and/or loss
provision processes. One prerequisite: Doing
so requires the ability to quickly ingest the
data into a sandbox environment to facilitate
experimentation, testing and learning. In
addition, insurers need to be careful that they
do not violate any terms of service for data
usage, and that they hold their customers’
privacy in the highest regard by only using
aggregated data and taking similar measures.
3. Establishing the right environment
The most hospitable environment for dealing
with new external data sources is a big data
environment in which data scientists and data
engineers can rapidly iterate through large
data sets and look for trends and signals. For
example, Accenture offers a turnkey big data
environment, the Accenture Insights Platform
(AIP), which is entirely provisioned and
managed by Accenture and invoiced on a “pay
per use” basis. This platform combines market-
leading tools, and external data sources
such as Enigma, that allow clients quickly
and efficiently to harness business critical
information to make smart, strategic decisions.
4. Harnessing new devices
In 2015, ten insurers received permission
from the Federal Aviation Authority (FAA) to
experiment with drones. Drone technology
may not be applicable for every insurer, but
there is significant data to be harvested from
other technologies, ranging from telematics in
automobiles, to sensors in connected homes,
to wearables, to GPS devices.
5. Making visual sense of data
Data visualization tools such as Tableau, d3
and Qlik help insurers see, make sense of, and
gain insights from large amounts of data.
6. Building an ecosystem
Insurers need to work with external suppliers
of data, but they can also partner with players
in other industries to create new services that
can deliver value to customers while helping all
involved build a lasting competitive advantage.
7. Decentralizing analytics resources
It is essential to embed analytics talent
deeply into the lines of business so that team
members can develop an understanding of
both business needs and of the types of data,
data models and analytics use cases that can
help meet those needs.
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11. The playing field for insurers is changing rapidly and may be almost
unrecognizable in a few years. It is becoming increasingly clear
that external data – combined with industry knowledge, process
expertise and sophisticated analytics – will be the basis for success
for insurers going forward. Harnessing external data is a complex
undertaking, but insurers can start by developing a comprehensive
plan and then undertaking specific, high-return initiatives that
build momentum and help transform the enterprise into a winning
competitor in the new digital arena.
Building a winning strategy
on external data
As these initiatives indicate, we believe that successful insurers will
need to adapt to a rapidly changing landscape by becoming not just
more data-driven but more flexible and responsive. The old industry
model – with data and technology operating in their own controlled,
isolated environment – will no longer work. Instead, teams working
throughout the enterprise should be able to obtain new, unstructured
data sets and the technologies required to obtain
valuable insights.
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