3 Data Techniques to Push Competitive Boundaries
1. Underwriting and exposure modeling are hot topics for risk prediction and control: According to Celent, analytics and dashboards in support of underwriting accounted for 29 percent of all submissions for this year’s awards. The submissions were split into two main types: 1. Those that used data to inform and then help automate underwriting rules “targeted more at high volume product lines” 2. Those that used non-standard or external sources of data to inform underwriters at the point of decision “targeted more at non-standard and specialist risk” Additionally, exposure-modeling solutions featured more-sophisticated visualization tools.
Finalist: Bankers Insurance Group: Bankers Insurance simplified their home insurance shopping experience by requiring prospective customers to only input an address to deliver one-click, pre-underwritten quotes.
2. Fraud identification continues to provide real benefits: Beyond pure efficiency savings, Celent found that P&C insurers’ claims transformations continue to help deliver bottom-line savings. Fraud detection and live monitoring also provide the “icing on the cake,” as they increasingly extend to real-time detection through voice and communication pattern analysis.
Finalist: RSA Insurance Group Plc : In an effort to enhance its fraud detection performance across all lines of business, RSA implemented a detection program that identifies both opportunistic and organized fraud, from suspicious claim activity to questionable activity in social networks. By also implementing detection capability at the point of claim, RSA’s solution targets application fraud, policy fraud and quote analysis fraud.
3. Actuarial platforms — A clean sweep: Although small in submission volumes this year, Celent observed greater activity around consolidation of reporting tools and MI infrastructure as insurers looked to reduce costs and make more effective use of previously purchased solutions. As a result, Celent found that much of this activity had moved into the complex world of actuarial engines. Additionally, a growing global interest in capital modeling — driven by a combination of economic pressures and local regulator activity — has resulted in new initiatives focused on engine consolidation, global platforms and, for some, a fresh burst of cloud activity.
Finalist: Inter Hannover: Inter Hannover deployed a risk assessment and exposure management platform that centralizes all of its risk information, including policy accumulation and peril risk data for flood and subsidence. Additionally, the platform allows for a large distribution channel to assess risk across all channels at the point of service, and provides Inter Hannover with a full view of all risk on its books to manage its portfolio performance.
Up Next: Winners of the Model Insurer awards will be announced at Celent's 2014 Innovation & Insight Day in April. Over the next few weeks, INN and Celent will share lessons learned from Celent's Model Insurer award program. See: 3 Things We Now Know About Success in Digital and 3 Trends in Legacy Modernization.
Data derived from devices, new external data sources and new techniques for interpreting data are pushing the competitive boundaries for insurers at an accelerated rate. Click through to see the three finalists in the Data Mastery and Analytics category of Celent's Model Insurer awards program, as well as the hottest trends identified throughout the judging process.