Analytics, the right hemisphere of insurance - FIARfiar.ro/downloads/2018/digital/Generali.pdf · cross sell models through advanced analytics • In Bancassurance business identify

Analytics, the right hemisphere of insurance

Yasmine NouriIoana Gherman

Bucharest, May 14 2018

• Digital transformation, the Generali way

• The Analytics Solutions Centre overview

• Video describing the Analytics Solutions Centre

• Diving into the projects:

• AI applied for customer and distributor innovation

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What we would like to share with you:


Digital Transformation (and not just in Insurance)

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Digital Transformation is about…

ACQUIRE STORE ANALYSE USE

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Analytics is nothing new for insurance companies


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The context is tough


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We need to expand the analytics boundaries


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Analytics Solutions Centre in a nutshell


Embed Analytics into the insurance DNA

WHY

WHERE

HOW

New Products

development

Sales &

Marketing

Claims

ManagementDigitalization &

Process automation

To support Generali Business Units digital transformation through the development of

data analytics, to address business challenges and to identify potential for growth

Business Opportunity Identification

Data CollectionInsights

GenerationBusiness

Outcomes

Pricing &

UnderwritingOperation

Optimization

WHAT

The Analytical Platform

WHOA team of 16 people working with Generali Companies through 4 different engagement

models to embed analytics into the Company value chain

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Analytics Solutions Centre global footprint 2 years later



COSMOS

GENERALI ITALIA

Generali France

BGVita

Generali Hungary

ASIA REGIONAL HUB

GENERALI SERBIA

GENERTEL

Europe Assistance Italy

GEBGENERALI Germany

CENTRAL

GENERALI INVESTEMENTSGenerali Group

BAWAG PSK Versicherung

Generali Austria

GENERALI INDONESIA

GENERALI SPAIN

GENERALI BRASIL

GENERALI ARGENTINA

GENERALI TURKEY

FUTURE GENERALI INDIA

Analytics Solutions Centre Global footprint 2 years later

42Projects

14Countries

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Analytics Solutions Centre supports the delivery of Generali’s strategy



Rationalize the operating machine

Logistics:• Document categorisation and

dispatching through Text Analytics

Field Care:• Improving operations

communications between Distributors and Back Office through rule based systems

Chatbot: • Backoffice automation

through Artificial Intelligence for repairers and staff

Medical Tickets:• Automating the classification

and processing of Health Claims thanks to image processing algorithms and Machine Learning

File Review, Recoveries:• Predictive models to

maximise efficiency in qualitycheck

Enhance core insurance

capabilities

Fraud identification: • Combine a rule based

approach with a predictive model to boost potential fraudulent claims spotting

Underwriting fraud: • Apply Customer Link

Analytics to identify fraudsters communities

New products 65+:• Support the definition of a

new product for Elderly segment through the analysis of open data

Pricing• Point Of Interest to refine

pricingForecasting:• Apply analytics to forecast

P&LImage Analytics• Analyse claim images to

prevent fraud and predict the claim cost

RebalancePortfoliostructure

Community: • Build a community to share

best practices and insights on Unit Linked Customers, select targets, run campaigns and steer commercial approach

Customer and distributor innovation

Cross Sell:• Increase the number of

policies per Customer through the definition of cross sell models through advanced analytics

• In Bancassurance business identify bank Customers to promote specific P&C products

Churn prevention:• Define churn predictive

models to address specific campaigns for motor and non motor policies

• Define survival models for identifying Customer lapse for Casco policies

NPS:• Business linkageText Analytics:• NPS Verbatim• Dossier analysis

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Analytics Solutions Centre overview



Diving into Customer Insights:

• CRM analytics: focus on Cross-selling

• Location Analytics

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Cross-sell modeling

• Increase the success rate

of our Distributors

• ~4x

• Increase the contact rate

~30%

• Cross Sell models:

• ~+30p.p. vs

previous models

BenefitsBusiness Need

Build or revise existing cross selling models to improve portfolio profitability and

support our distributors

• Identify for a specific

set of products which

are the best Customers

to contact

• Identify best products

to sell to increase

Customer value and

loyalty

Solution

Data

Analytics

Distributor’s

front end

AgentCustomer


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How does a cross selling model work D.A.T.A: Distribution Acceleration Through Analytics

TRAIN SCORE BENEFITS


Most used models

1. Decision Tree

Is a set of rules used to

classify data into categories.

The algorithm finds the

property that best separates

the data and iterates the

procedure on the new set of

data, until when the

homogeneity inside each “leaf”

of the tree is maximized.

2. Logistic Regression

Regression model where the dependent variable is categorical. Estimates how the presence of a risk

factor increases the odds of a given outcome by a specific factor.

3. Random Forrest -> XGBoost

Generate random samples of data and build different decision trees in parallel. In case of XGBoost the

samples are chosen in a recursive way: subsequent samples depend on records in the previous sample

which were not predicted correctly. The final prediction is a weighted average of all the predictions given

by the trees.Bucharest, May 14 2018

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Visualisation is essential for interpretability

Enter :

Contract,

Policy number or

Stammnr

Probability for customer «12467» to

buy products 3PR, RIX and PflegeBucharest, May 14 2018

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Location Analytics to help Home Insurance Pricing

• Better fitting the Home

Insurance Price

• Attract new clients with

good risk

• Make pay the good price

for the clients already in

our portfolio

BenefitsBusiness Need Solution

Is it possible to add new information coming from location analytics field in order

to create new feature and improve the pricing for Home Insurance ?

Use new data: first idea

provide the distance to

some relevant POI

Not enough information

to personalize the pricing

- Construction year

- Number of rooms

- Surface area

- Region

- …


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Location Analytics : Google vs OpenStreetMap

Main Remarks

❑ OpenStreetMap is an open data

project

- Access to raw data

- Limited in offering compared to

Google but Services not

rendered be openstreetmap are

developed by third party (For

example OSRM, Overpass API)

OpenStreetMap is open in ways

Google will never be. With access to

the raw data the developer ecosystem

can start to offer services matching

those of Google (or more).


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“How you gather, manage and use

information will determine whether you

win or lose.”

Bill Gates

Documents

Analytics, the right hemisphere of insurance - FIARfiar.ro/downloads/2018/digital/Generali.pdf · cross sell models through advanced analytics • In Bancassurance business identify