Slide deck presenting objectives of Big Data Working group of Institute of Actuaries in Belgium.
The goal of the group is to 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.
Contact me at mat@motosmarty.com
5. What is Big Data?Big Data
Eric Schmidt,
CEO of Google, 2011
“There
was
5
exabytes
of
informa4on
created
between
the
dawn
of
civiliza4on
through
2003,
but
that
much
informa4on
is
now
created
every
2
days,
and
the
pace
is
increasing.”
But
not
only
the
size
ma0ers
!!!
6. Big Data WG
Why?
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.
7. Big Data WG
How?
• Big Data information paper ;
• Regular meetings with guest lecturers presenting different
aspects of Big Data, at least bi-monthly;
• Seminars;
• CPD courses – Big Data/Data science program – from 2016;
• Further technical notes on the topic.
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. 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
18. 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
theG
• 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. Why Change?
- Expensive customer acquisition
- Little contact with customer
- Low brand loyalty and retention
- Regulatory pressure …
22. Insurance
Canitbesexy?
Oscar, US - employs technology, design & data to humanize health care
Habit@t, IT - 1st Connected Home Insurance by Cardiff
Insure the Box, UK – successful UBI with pre-paid model
Intesa SanPaulo Assicura, IT – UBI with viable risk-based pricing model
Friendsurance (DE), Guevara (UK) – P2P insurances
Climate Corp – farmers crop insurance based on high precision weather data