Actionable Analytics at the Point of Decision Conference 2013...Actionable Analytics . at the Point of Decision. John Belizaire . Founder & CEO . Use this slide to introduce that you

© 2006-2013 Confidential to FirstBest Systems

Actionable Analytics at the Point of Decision

John Belizaire Founder & CEO


Example: Insurance Underwriting

Actionable Analytics at the Point of Decision

John Belizaire Founder & CEO

Presenter

Presentation Notes

Use this slide to introduce that you will be speaking about underwriting as an example of the use of analytics in insurance. P&C underwriting is actually similar to other types of insurance underwriting and more broadly, to any decision-making process – and data is central to each.

© 2006-2013 Confidential to FirstBest Systems © 2006-2013 Confidential to FirstBest Systems


33%of what we eat

depends on bees



Bee Collapse U.S. Economic Impact

$15 BILLION



100% of insurance

depends on data

Presenter

Presentation Notes

Insurance types: Row 1: Auto, commercial vehicle, homeowner, commercial property (x2) Row 2: Healthcare (x2), Life insurance (x2), commercial specialty Row 3: Workers comp, professional liability (x2), BOP, GL (last 2 are not exact)

© 2006-2013 Confidential to FirstBest Systems © 2006-2013 Confidential to FirstBest Systems

Insurance Without

Data

Bad Decisions

Fraudulent Data

Poor Pricing Slow Turnaround

Bad Products Unhappy Customers

Heavy Losses

BANKRUPTCY Bankruptcy

Presenter

Presentation Notes

Insurance types: Row 1: Auto, commercial vehicle, homeowner, commercial property (x2) Row 2: Healthcare (x2), Life insurance (x2), commercial specialty Row 3: Workers comp, professional liability (x2), BOP, GL (last 2 are not exact)



Corporate Data is Growing…

2015 2012 2020

2,749 908 12,808 exabytes

1 exabyte = 1 billion gigaybtes Derived from IDC Digital Universe Study Dec 2012


…But Analytics Lag

IDC Digital Universe Study Dec 2012

Analyzed today

1%

99%

Useful if Analyzed

23%

77%


The Challenge: Missing Data Lower Underwriting Profit, Higher Risk

Presenter

Presentation Notes

Most companies are plagued by a lack of data or ability to make sense of the data they have. This missing data leads to lower underwriting profit and much higher risk.


Data Problems Today

Unavailable data

?

Time-consuming data entry

Lack of integration

Incomplete data

Information silos Manual, inconsistent processes

Time-consuming to bring data into the

process

Presenter

Presentation Notes

We are virtually awash in data but that data is not always accessible. If it’s not accessible, it won’t get used. Why not: Agents may not take the time to give you everything you need to know about a particular risk – may not know the answer, the insured may not be honest, agent may not want to take the time Time-consuming for agents to submit applications Data may not exist Data not integrated into systems Information silos – no single view of the underwriting process Manual and inconsistent processes – some underwriters use data, others do not Time consuming to bring data into the underwriting decision


Data & Analytics in Underwriting

Modeling Tools Catastrophe Models

& Predictive Modeling

Flood/Location Reports

Exposure Concentration

Reports

Financial Reports

MVRs & Telematics

Presenter

Presentation Notes

Risk data – provided by insured and agent Predictive modeling Cat models Property, auto, driver data Geo-location data Big data etc


A Strategy for Insurance Excellence

1 BUSINESS STRATEGY

Where does your company want to go? Innovator/Leader/Follower/Laggard

2 DATA SCIENCE Develop strategies to organize, ingest, manage and get the most out of data

3 PLATFORM & HUB

Insight Platform: Assemble and analyze data to understand the business Data Hub: Make better decisions based on insight

4 DATA-POWERED UNDERWRITING

Use data-aware decision platforms and desktop software that leverage platform/hub to ensure decisions based on rich data

Presenter

Presentation Notes

Data Science - Bring variety of data together Insight - Find the bright spots, the data that really matters Decision Platform - put into action “the last mile in analytics…” - Pull all of the information together into a common platform that includes: Rules and triggers Automated workflow Pre-filled data for agents and underwriters Integrated data, reports, etc


Insurance Data Hub

Underwriting

Re-insurance

3rd-Party data

Billing

Policy

Industry

Carrier Models

Data Hub

Underwriting Workstation

Presenter

Presentation Notes

Integrated Web services and analytics models with risk selection and pricing Integrate with your models, new models, any model. Allow underwriters to use Modeling to Drive better Risk Selection and Pricing.


Insight Platform Actionable Insight at the Point of Decision

External data feeds (examples)

Catastrophe modeling Predictive analytics

Property reports

Predictive modeling Motor vehicle reports

Auto loss history Geocoding

Reporting

Analytics

Dashboard

Rules

Data-driven workflow


A Better Way: Complete Picture of the Risk

Maximum Underwriting Profit

Presenter

Presentation Notes

The goal is to provide data and models to the fingertips of the people making the decisions – giving a complete picture of the risk so intelligent decisions get made. Applying big data to the underwriting process ensures accurate and complete risk assessment. Allowing for faster and much better decisions to be made.



Efficiency and scale Carrier of choice Lower loss ratio

Evaluate risk and

price

Quote

Close business

Submit

FirstBest Front Office Suite

Modular & configurable

• Underwriting workstation

• Mobile underwriting

• Agent portal

• Agent upload


Thank You!

The leading provider of

underwriting & front office solutions for American and international insurance carriers

www.firstbest.com Twitter: @FirstBest

Documents

Actionable Analytics at the Point of Decision Conference 2013...Actionable Analytics . at the Point of Decision. John Belizaire . Founder & CEO . Use this slide to introduce that you