THE STATE OF ANALYTICS IN INSURANCE SURVEY RESULTS

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1 THE STATE OF ANALYTICS IN INSURANCE SURVEY RESULTS Who we spoke to In June 2014 FC Business Intelligence conducted a survey of European insures and reinsurers There were 165 respondents in total This is how much of their time they spent on analytics: NOT MUCH AT ALL 1% A SMALL AMOUNT A MODERATE AMOUNT 33% 43% THE MAJORITY OF MY TIME ALL OF MY TIME 16% 7%

2 Key Findings from the Survey 72% of insurers agreed that Analytics is the biggest game-changer for the insurance industry in of insurers said that they have seen good to transformative results from the use of analytics 52% have seen small rewards from analytic initiatives 63% of insurers are planning to increase their spending on analytics in the next 12 months 44% of insurers said there s still work to do when it comes to using analytics to target customer more effectively and improve the customer journey?

3 Q - Where are insurers using analytics? 92%of insurers are using analytics in some part of their business of insurers are using it across their whole business When asked where they are using analytics, the most common functions were: 51% 47% PRICING UNDERWRITING x Only 1% of insurers are using analytics for social media data Q - Which areas have the most to gain from analytics? 50% Underwriting! 45% Pricing = 36% Claims 21% Customer Insights 27% Fraud 34% Marketing

4 Q - Which of these roles are spearheading analytics in the organisation? Chief Underwriting Officer Chief Financial Officer Chief Actuary 27% Chief Executive Officer 17% Chief Operations Officer Chief Marketing Officer 12% 13% Chief Risk Officer Chief Claims Officer Chief Data Officer/ Chief Science Officer Chief Information Officer/ Chief Technology Officer 9% 9% 8% 8% Q - Which of these sources do you use for external data? Voice/speech data 2% Geo-location (mobile & sensor) data 6% Social media insights 6% Data from industry bodies 23% Do not currently capture and/ or utilise external data 7% Purchase behaviour 8% Credit score 14% Demographic data 18% Data from other insurance providers 16%

5 Q - What are your key challenges in analytics? Overcoming the silos and getting your data in the right place at the right time 53% Using analytics to drive efficiency and collaboration across the business Finding the right people for the job Using analytics to determine risk Creating an enterprise-wide analytics strategy Using other external data sources/ unstructured data Understanding your customers Injecting customer insights back into the business 34% 33% 32% 30% Using analytics to detect fraud Getting support from the board for analytics initiatives Working around regulations and customer privacy concerns 15% 15% 18% Using social media data 3% No part of this document may be distributed, resold, copied or adapted without FC Business Intelligence prior written permission.