7. Why Big Data
Working Group?
Discuss:
• Impact of Big Data on insurance sector and the actuarial
profession;
• Present challenges and good practices when working with Big
Data;
• Educate actuarial profession about Big Data through CPD
courses
9. Combine different sources and apply analytics to
create comprehensive customer view and:
• Maximize profitability of the current portfolio
• Detect cross-sell and up-sell opportunities;
• Increase customer satisfaction and loyalty;
• Acquire new profitable customers and reduce marketing costs.
Underwriting
11. • Insurance prevention program with discounts and rewards for good
driving
• ‘Phased’ approach:
• Phase 1: combine data from different sources i.e. traditional channels, online channels,
external service providers, Tesco group warehouses;
• Phase 2: Identify the right customers within Tesco network;
• Phase 3: Provide initial offer and reward drivers with initial rewards from Tesco group;
• Phase 4: Iterate and provide personalized insurance offers.
Underwriting
makinginsurancesexy
17. Pricing
Usage-BasedInsurance(UBI)
Full
UBI
–
niche
market
segments
Motor
insurance
telema7cs
–
mass
market
Works
well
with
niche
segments:
• Young
drivers
• People
living
in
risky
regions
• Low-‐mileage
drivers
Insure
the
Box,
UK
New
disrup=ve
model
for
low-‐mileage
drivers
with
prepaid
miles
(similar
to
prepaid
mobile.
No
punishment
for
bad
driving.
Self-‐selec=on
+
individualized
premiums.
Progressive,
US
“Prince
of
pricing”
with
MyRate
(pricing
variable
innova=on)
&
Snapshot
(1st
telema=cs-‐based
insurance)
offers
Self
selec=on
&
individualized
insurance
premiums
Intesa
SanPaulo
Assicura,
IT
Telema=cs
play
key
posi=on
–
car,
bike
home
Created
viable
risk-‐based
pricing
model
with
phased
approach
for
Viaggia
con
me:
Phase
1
(tradi=onal
variables),
Phase
2
(Banking
parameters),
Phase
3
(Purchase
and
use
variables),
Phase
4
(Behaviour
variables)
18. Insurance value chain:
undewriting
Covers different
Claims management &
Fraud detection
Insurers loose 5% of the annual revenue due to fraud
Coalition Against Insurance Fraud (US) in the 2014 report has
stresses that technology & Big Data plays a growing role in
fighting fraud
19. Claims management
Examples-UBI
From high to low loss ratios
UnipolSai
-‐
IT CoverBox
&
Carrot
-‐
UK
Telema=cs
champion
(2.2M
ac=ve
boxes)
Best
prac=ce
claims
management
incl.:
• FNOL
-‐
quick
accident
response
• Vehicle
loca=on
in
case
of
of
theW
• Accident
reconstruc=on
Further improvement of the operational
efficiency including:
• Crash data combined with video footage to fight
fraud
• Better prediction methods to reduce claims duration
and cost i.e. no need for expert, efficient accident
reconstruction
• Prove innocence
21. Insurance
Canitbesexy?
Health insurance, US
Oscar is a health insurance company that employs technology, design,
and data to humanize health care.
Technology as differentiator (telemedicine) - system connects doctors and
patients with help of mobile app, website, bills, free fitness-tracking devices – easy
to use and understand.
22. Insurance
Canitbesexy?
Home Insurance, IT
Habit@t is the first Connected Home Insurance by Cardiff;
Well targeted customers – young, tech-savvy, from big towns;
IoT based - combining home telematics with home insurance;
Superior customer relationship - user-friendly & seamless usage via
smartphone app, multichannel with strong support;
Proactive alerts and risk managements.