1 / 20

Business Intelligence Solutions for the Insurance Industry

This article explores the benefits of implementing business intelligence (BI) solutions in the insurance industry, including improved data quality, better business understanding, timely decision-making, and the ability to exploit new market opportunities. It also discusses the different BI functionalities and applications in insurance, such as fraud detection, retention analysis, policy analysis, and engagement overview. The article emphasizes the importance of selecting the right BI supplier and highlights critical success factors for implementing BI projects in the insurance industry.

gerow
Download Presentation

Business Intelligence Solutions for the Insurance Industry

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Business Intelligence Solutions for the Insurance IndustryDAT – 13 Data WarehousingRasool Ahmed

  2. Business Intelligence Questions: • BI - What is it? What would I do with it? Why do I need another system to do it? • BI supplier selection evaluation criteria.

  3. Executive Analysis • Query • Reporting • Data Mining • Claim • Sales & Marketing • Financial • Underwriting • Third Party Data • Other Int. Systems • Multi-Company • Multi-Line • Multi-Source • Multi-Dept/Function • Transaction Level Business Intelligence Access Data Warehouse Judy Ann Brown Female July 20, 1945 Financial Consultant Good Credit History Income > 100,000 One Claim Filed Closed Without Payment Two Tickets 1999 One DUI Load Transform Extract Operational Data Sources Policy J Brown Female July 20, 1945 Financial Consultant Claim Judy Brown One Claim Filed CWP MVR Brown, Judy Ann Two Tickets 1999 One DUI External Judy Jackson Good Credit History Income > 100,000

  4. BI - What would I do with it? • Interactive • Intuitive • Mgt Review • Loss Triangles • Risk Assessment • New Business • Exposure Evaluation • Pattern Recognition • Predictive Modeling • Risk Scoring • “Fraud with 85% accuracy” Data Modeling “…predict with 82% accuracy those customers that Will cancel their policies.” “… The special Investigation Unit can now prioritize and catch 66% more fraudulent claims per referral.” Detailed Analyses Exec / Mgt Profiling

  5. What can do with it? • Executive Browser

  6. Why do I need another system to do it? • Data organized for OLTP, not analysis • Inability to slice and dice – geared for management reports • Unintelligible coding structures; no meta data • Not a complete picture (multiple systems); can’t merge • Inability to augment data • 87% of all insurance master files are non-relational • Inability to profile trends

  7. Insight knowledge & insight gathered by insurer • Executive Analysis • Query • Reporting • Data Mining • Corporate Detail • Corporate Summary • Line of Business • Policy • Claim • Rating • Claim • Sales & Marketing • Financial • Underwriting • Third Party Data • Other Int. Systems Business Intelligence Access Insure Marts™ Aggregate solutions provided by Thazar Insurance Warehouse™ • Reinsurance • And more Load Transform Extract Data Sources Information source data provided by insurer

  8. Business Intelligence How Much? 199X2000 $$ $3+ M 1/4% NWP Time > 3yrs 3 – 5 months Function Reports Profiling/Predictions

  9. Business Intelligence For Example…….: Fraud Detection Losses are 70% of NWP; 10-20% of Losses are Bad Faith Identifying <4% of Bad Faith claims pays back cost of DWH Retention Poor Average Good 25% 35% 45% (after 4yrs) |----------------------------------- (2%) Loss Ratio |----------------- (1 ½%) Loss Ratio Increasing Retention by 1 ½% pays back cost of DWH (reduced losses only) New Business Costs of Sales can vary from 5% to 20% of NWP Moving 5% of business to channel that is 5% more efficient pays back cost

  10. Why Companies are DoingBusiness Intelligence Better Quality of Data 35% Better Understanding of the Business 20% More Timely Decisions 30% Exploit New Market Opportunities 15% Over 400% ROI in less than 3 years! Meta Group Survey of 300 Companies Implementing Warehouses

  11. Why Companies are DoingBusiness Intelligence Revenue Growth / Expense Control • Questions You Need Answered Now • Questions You Have Not Thought About • Acquisitions

  12. Personal Auto – Retention Analysis • Policy Holder Characteristics • Loss Attributes • Policy Attributes • Distribution Analysis • Dimensions

  13. Homeowners – New Business Analysis • Policy Level Analysis • Risk Characteristics Analysis • Home Feature Analysis • Time Views

  14. Engagement Overview • wk 1-2 Plan / Organize • wk 3-4 Data Analysis Workshop • wk 5-7 ETL Development • wk 8-9 Test & Balance • wk 10-11 Load Warehouse & Marts • wk 12 Go Live

  15. BI Solutions Provider Project Manager Business Analyst* Data Analyst* Technical Analyst * Insurance knowledge & experience is critical Client Project Manager Business Analyst Data Analyst Implementation Roles / Responsibilities

  16. Critical Success Factors... SupplierBothYou Executive Sponsorship & Vision Functional Executive commitment Information Systems Team involvement BI Insurance Experience & Methodology Pre-defined Models, Templates, Marts & Executive / End User Browser

  17. Critical Success Factors... Supplier BothYou Scope & definition study - phased Implementation Expectations & Results understood Business & I/S experts to implement Training and skills transfer Easily Supported & Maintained Add additional departments, enhancements & applications

  18. Lessons Learned Don’t: • build “boil the whole ocean” • oversell to end-users • build something that can’t be maintained and extended Do: • start small “phased” - prioritization by LOB • ensure data has integrity and is balanced • define measurable objectives Keep At It !!! • deliver “baseline” results early & continue to build

  19. Rasool AhmedThazar Solutions Corporationrmahmed@thazar.com816-760-5119

More Related