Tackling Insurance Analytics Technology

This Week in Analytics: News

Insurance Analytics Technology, Analytics for Underwriting, Insurers Lag in Technology Adoption, Pat Ryan on Recruiting, Insurance Jobs Affected by Talent Gap, Telematics in Commercial and Homeowners Insurance


INN: Insurers Tackle Data Quality With Robust Management

“Allstate and XL Group are among the growing number of insurers with executive teams devoted to cleaning and organizing data to facilitate enterprise analytics initiatives.

On its surface, the data-rich insurance industry seems like a perfect match for today’s sophisticated business intelligence and analytics technologies. But many carriers are learning a harsh rule of data: Garbage in, garbage out.

For insurers, data quality can be a tough nut to crack – and the value of the output from any analytics technology is directly related to its inputs. And data constantly flows into carriers from different sources and gets processed through different systems. In a dynamic and fragmented computing environment, it’s not surprising that insurers have trouble identifying that a customer who just purchased a new homeowner’s policy is the same customer whose 20-year-old term life policy is about to expire.” Read the full article now…


INN: Underwriting: Where Insurance Data Really Pays Off

“Swiss Re and Allianz Life are giving their underwriting staff robust analytics tools that drive costs down and improve the customer experience.

Insurance companies can use data to boost customer retention and acquisition, detect fraud, create a more satisfying customer experience, transform the contact center, find operational efficiencies, create competitive advantage and improve claims operations. It’s the underwriting function, however, that stands to gain the most from increased agility with data. Successfully leveraging big data can make an enormous difference in the underwriting process. Underwriters can use big data to gain insights, inform decisions, drive innovation and improvements, and better understand and assign risk, all leading to greater insurer profitability.

But before they can take advantage of all the opportunities and advantages big data can provide, underwriters first must deal with a host of data-related challenges, especially as data burgeons, growing exponentially, relentlessly and almost unfathomably fast.” Read the full article now…



Reuters: Reports Show Insurers Lag Behind in Adopting Technology

“At a time when the financial sector is racing to embrace digital technology to boost sales and drive profits, the traditionally staid insurance industry is in danger of falling behind.

Some insurers are using developments such as telematics, or social media sources, to increase the amount of information they have about customers to reduce claims and theoretically make insurance cheaper for all.

Telematics uses aircraft-style ‘black boxes’ that have been in Formula One racing cars for years to collect data about how policyholders drive their cars, so they can be rewarded with lower insurance premiums if they adopt a cautious style.

But an industry that has long relied on personal contacts – the Lloyd’s of London insurance market started in a coffee house in the 17th century – hasn’t been quick to embrace new technology or mine vast new data sets, or ‘Big Data.’” Read the full article now…


Business Insurance: Pat Ryan ‘Bullish’ on Insurance Sector

“CHICAGO — As the insurance sector continues to change and fragment, young people entering the industry have great prospects if they are prepared to specialize and work hard, said Patrick G. Ryan, chairman and CEO of Ryan Specialty Group L.L.C.

Unlike investment banking and commercial banking, which are subject to cyclical trends, insurance offers the prospect of full employment for an entire career, he said.

But to ensure that talented young people enter the industry, the leaders of brokers and underwriters have to make it a personal mission to recruit them, Mr. Ryan said.” Read the full article now…


IBA: 6 Insurance Jobs Most Likely to Be Affected by a Talent Gap

“Economic promise has never shined so brightly on the insurance industry—the Bureau of Labor Statistics anticipates a growth of 200,000 new jobs by 2022 and unemployment within the sector was less than half that of the national average.

Companies within the industry are having a hard time meeting that new demand, however. The average insurance professional is 45-years-old, and just 5% of students in the millennial generation describe themselves as ‘very interested’ in working in the insurance industry, according to a 2012 study from the Griffith Insurance Education Foundation. The push for new technology has made hiring young millennials even more vital.

In a new study, College for America took a closer look at these trends and identified six positions most likely to be affected by the advent of new technology and the anticipated skills gap.” Read the full article now…


IBA: Are “Telematics” Coming to Commercial and Homeowners Insurance?

“As the use of big data continues to influence pricing models for auto insurance, one actuary with Towers Watson foresees a not-too-distant future in which the principles of telematics are brought into the small commercial and homeowners space.

‘With the use of big data and usage-based insurance, actuaries are looking more at causal relationships rather than just corollaries,’ Towers Watson’s Ron Kozlowski told Insurance Business. ‘Now, you’re not getting this rate because you’re married or because you’re 28, it’s based on the way you drive—and there’s been talk about whether or not it could be applied towards small commercial risks or towards homeowners products.’” Read the full article now...

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