ON THE CUSP OF TRANSFORMATION

Save this PDF as:
 WORD  PNG  TXT  JPG

Size: px
Start display at page:

Download "ON THE CUSP OF TRANSFORMATION"

Transcription

1 ON THE CUSP OF TRANSFORMATION All this information is potentially of tremendous value to insurers as they seek to improve the accuracy of their actuarial analytics, deliver competitively differentiated value to their customers and contribute more proactively to the mitigation of risk. The Internet of Things (IoT) is poised to radically change how insurance companies manage risk and engage with customers. One of the most dramatic technological changes taking place in the world today is the so-called Internet of Things (IoT). No one may have noticed at the time, but the number of Internet-connected objects exceeded the number of Internetconnected people back in Gartner has projected that the total number of such devices will reach 26 billion by This global phenomenon has serious implications for the insurance industry. Massive volumes of data are being generated by sensors on everything from gas pipelines and building systems to the health bands that track people s activity and sleep patterns. All this information is potentially of tremendous value to insurers as they seek to improve the accuracy of their actuarial analytics, deliver competitively differentiated value to their customers and contribute more proactively to the mitigation of risk. Most insurance companies are having their initial encounter with IoT in the form of usage-based insurance (UBI), which leverages telematics from their customers cars. UBI is, as Donald Light, director of the Americas Property/Casualty Practice at technology analysis firm Celent, puts it, firstest with the mostest when it comes to leveraging IoT in the context of the insurance business. So the lessons the industry is learning with UBI are likely to have a ripple effect on other lines of business. UBI: FIRST STEPS The embrace of UBI is still in its early stages. According to a recent study by SourceMedia, only 21% of insurance companies are currently implementing UBI, while another 15% are in the pilot phase. And still don t have any plans for UBI at all. Not considering or planning Considering or planning Testing/piloting Implementing Implementation Stage 15% 21% 25% Stephen Busateri, Global Practice Manager for Verizon s insurance industry programs, notes that many insurers in this latter group are intimidated by the 1 Gartner Group, Forecast: The Internet of Things, Worldwide, Verizon Trend Report

2 whole prospect of gathering and utilizing auto telematics. They get hung up on the technology, rather than understanding the business model and value chains, he explains, adding that service providers are starting to offer solutions that insulate such companies from these technology challenges, giving them turnkey access to the data and analytics they need. Even companies already moving ahead with UBI, however, are probably still not making the most of the data being generated by their customers vehicles. According to the survey, insurance companies currently implement UBI primarily as a way of offering premium discounts (47%) and teen driving programs (37%). And, at first glance, this makes sense. Discounts incentivize customers to share personal information about their driving habits with their insurers and given the way teens tend to drive when unsupervised, it s very useful to give both parents and insurance companies the ability to monitor (and when necessary, hopefully correct) their behavior. But according to Jim Weiss, an actuary with Verisk Analytics Personal Automobile insurance Services Office, there is a significant disconnect between these top two responses and the fact that a much smaller percentage of respondents say they re setting premiums based on driving patterns (25%) or offering either behavior-based insurance (23%) or pay-how-you-drive programs (20%). It s clear that many companies are giving out discounts without understanding exactly UBI Application Implementation Policy discounts 16% 11% 7% 18% 47% Teen driving programs Automating claims processing Enhanced risk management Setting premiums based on customer driving patterns Behavioral-based insurance (BBI) Pay-how-you-drive insurance (based on driving styles) Senior driving programs Pay-as-you-drive insurance (based on distance) 35% 20% 7%2% 37% 11% 17% 11% 32% 24% 22% 12% 16% 26% 25% 15% 10% 25% 25% 36% 15% 9% 17% 23% 25% 22% 8% 25% 20% 48% 13% 8% 15% 18% 19% 4% 23% 15% Implementing Testing/piloting Planning within 12 months Planning in more than 12 months Not considering/planning Source: SourceMedia/Verizon survey: The Internet of Things. 2 Verizon Trend Report

3 As more sensors capture more data about people, places and things and as it becomes increasingly commonplace for those sensors to have wired or wireless network connections that allow them to transmit that data to private or shared repositories a whole host of new business opportunities will present themselves... who they re giving the discounts to or exactly why they should be giving them those discounts, Weiss explains. So there s obviously a need to develop better analytic models that provide a more factual basis for differentiated premiums. That s easier said than done. We ve only been collecting UBI data for about a year, and we ve already collected more data than Twitter [has generated tweets], says Curt Davies, Connected Car Team Lead for American Family Insurance. I think it s fair to say we ve got a long way to go before we fully understand how to make the most of this data to make positive gains for ourselves and our customers. Over time, though, the likelihood is that insurance companies and their analytic partners will get better at correlating driving data and risk improving alignment between policy premiums and driver behaviors. The logic of risk selection and risk pricing is that really good drivers get big discounts, pretty good drivers get smaller discounts and bad drivers pay the highest rates, declares Celent s Light. That s a profound change in the rating structure for the whole industry. BROADER IOT-ENABLED RISK MANAGEMENT OPPORTUNITIES UBI only represents the first, and currently broadest, intersection between insurance and IoT. As more sensors capture more data about people, places and things and as it becomes increasingly commonplace for those sensors to have wired or wireless network connections that allow them to transmit that data to private or shared repositories a whole host of new business opportunities will present themselves to insurance companies, especially as the analytics that insurance companies can apply to such data become increasingly sophisticated. Emerging IoT-enabled insurance industry opportunities include: Behavior-based health insurance. Health insurance providers already factor customer behaviors such as smoking into their premium pricing. With the advent of personal fitness monitors such as FitBit and Nike Fuelband, there will be further opportunities to offer behavior-based discounts similar to those being offered in auto insurance. These monitors could also potentially be applied to the workers comp market to both track compliance with prescribed therapy and help detect behaviors that might indicate fraud. Condition-aware Property/Casualty. Buildings can already transmit a variety of information about themselves via devices such as thermostats and security badge systems. Some insurance companies are experimenting with additional special-purpose sensors that can detect moisture, wind and other conditions. By leveraging this data, property and casualty underwriters can better manage risk and more accurately determine premiums. The economics for such an approach are likely to be particularly compelling for larger portfolios of commercial property. Digital crop insurance. Climate Corporation, which was founded by two former Google employees and acquired by Monsanto in 2011, tracks weather data and compensates farmers for weather events without requiring on-site verification of crop damage. This approach reduces the cost, delays and disputes associated with conventional approaches to multi-peril crop insurance. Above and beyond generating these specific opportunities, the IoT phenomenon is likely to affect the insurance business in other ways as well. For example, given the fact that monitoring systems can provide proactive alerts about incipient problems before they result in losses, Verizon s Busateri anticipates a time when 3 Verizon Trend Report

4 reinsurance companies may actually require certain types of sensors to be in place as a condition of coverage. In addition to providing a wealth of quantitative data, IoT will also generate large volumes of visual data. Red-light cameras are already proliferating. And companies like American Family Insurance are already using drones to capture building and property conditions. Celent s Light even suggests the possibility that the government may eventually mandate the use of driver-facing cameras in cars. As this visual data grows in volume and the tools for automatically analyzing visual data grow in sophistication insurers may discover useful ways to leverage it. WILL IOT TRANSFORM INSURANCE ITSELF? The example of digital crop insurance highlights one area where IoT may have a particularly powerful impact on the insurance industry in the future: claims processing. As the SourceMedia survey indicates, only 3% of respondents are reaping the benefit of reduced claims processing from UBI even though almost one-third of respondents were expecting to. Insurance companies may therefore want to focus more attention on how they can use IoT data to help reduce cost in the claims process as well as make it faster and more accurate. In fact, as IoT continues to expand and evolve, it is likely to do more than just create new market opportunities for insurance companies. It may also bring about some fundamental changes in the market as a whole. Such changes could include: Closer, more transparent engagement with customers. Those working in the insurance industry often fail to realize just how opaque the business appears to customers who can t be blamed for not quite understanding what their credit rating has to do with their auto insurance premium. IoT, on the other hand, offers insurance companies the ability to present customers with premium calculations that make much more intuitive sense, since they are based on more plainly relevant empirical data. Loss and/or shift of premium revenue. Donald Light s 2012 report was only halfjokingly entitled The End of Auto Insurance. The fact is that as collision avoidance technologies, automated traffic law enforcement and telematics all make driving much safer, premium revenue is likely to drop precipitously. This drop will force Reducing claims processing costs 3% 32% Reducing fraudulent claims 6% 16% Reducing claims volumes 8% Improving customer service Reducing accidents Eliminating manual processing 17% 17% 16% 19% Improving operational efficiency Tailoring marketing messages 19% 20% 22% 32% Managing risk pools 22% 36% Improving customer retention 25% Providing new or expanded value-added services 33% Targeting more profitable customers 33% Customer acquisition/retention 32% 36% Reducing risk 36% Offering customer discounts Competitive advantage Developing more accurate policy pricing UBI Benefits Expected and Achieved Expected Benefits Benefits 47% 47% % 56% 56% 60% 4 Verizon Trend Report

5 insurance companies to find creative ways to replace that revenue. Legal and regulatory issues around personal data. A super-abundance of data will present new governance and security issues for insurance companies. These issues will involve more than just ensuring that customers personal information is protected against theft. It may also involve compliance with regulatory mandates such as those now faced by the healthcare industry with HIPAA where even the internal use of certain types of data is restricted in order to protect individual privacy. The democratization of risk management. Because IoT data is not exclusively available to insurance companies, new market entrants with strong skills in Big Data analytics and a penchant for innovation may disrupt the industry establishment. Insurance companies may be hard-pressed to defend their territory unless they are able to similarly innovate around IoT, Big Data, analytics and new value propositions to the customer. The bottom line is that knowledge is most certainly power when it comes to insurance and that IoT data will provide every insurance company, as well as its competitors, with plenty of actionable knowledge. IoT impacts the entire insurance value chain, from a more accurate digital assessment of risk at the front end to the more efficient resolution of claims on the back end, declares Verizon s Busateri. In the end, it s about using this data wisely to help everyone insurance companies and their customers alike make consistently better decisions. PREPARING FOR IOT: KEY TAKEAWAYS Insurance companies looking to leverage the IoT phenomenon for competitive advantage should keep several principles in mind: 1) Target low-hanging fruit first, then work iteratively. Verizon s Busateri encourages clients to focus on minimum viable product first and to then grow from there. Celent s Light agrees: It s an iterative process where each model you try becomes another data set on which you can base discovery. 2) Focus on specific monetizable outcomes. IoT data and analytics can serve multiple purposes: better risk assessment, more accurate premium pricing and discounting, better risk mitigation, a streamlined claims process, etc. Zeroing in on these specific outcomes requires discipline, but it can prevent wasted time and effort. 3) Be rigorous about your ROI model. ROI projections may not produce precisely accurate predictions about how much revenue or margins a given IoT initiative will produce in X years, but they are very useful for determining where to prioritize investment. 4) Get started. ROI concerns and implementation costs are among the top reasons companies aren t moving ahead with UBI and other IoT initiatives. But there s also a cost to not doing anything, Weiss cautions. And that cost is quantifiable. 5) Get help. There s no sense in re-inventing the wheel. One of the main reasons American Family Insurance is already a year deep into UBI, for example, is that it engaged with Verizon. So there s clearly value in engaging with the right partner. SURVEY METHODOLOGY Data presented in this white paper are based on results of an online survey conducted by Insurance Networking News and SourceMedia Research in August 2014 among executives in the property and casualty insurance sector. Qualified respondents were randomly selected from among Insurance Networking News readers who have agreed to participate in surveys. SourceMedia surveyed 101 insurance executives from P&C (64%) and multi line (36%) insurance carriers and reinsurers. Because the sample is based on those who are self-selected for participation rather than a probability sample, no estimates of sampling error can be calculated.

Auto Insurance Telematics: Where the Data Meets the Road

Auto Insurance Telematics: Where the Data Meets the Road Casualty Actuarial Society Annual Meeting: Auto Insurance Telematics: Where the Data Meets the Road John Lucker, Principal, Global Advanced Analytics & Modeling Market Leader, Deloitte Consulting LLP Sam

More information

Usage-based Auto Insurance (UBI)

Usage-based Auto Insurance (UBI) Usage-based Auto Insurance (UBI) A revolution is underway. Is your company ready? A presentation to 2013 CIA Annual Meeting by Pierre G. Laurin June 21, 2013 2013 Towers Watson. All rights reserved. What

More information

What GPS Will Do for You in 2015: the Future of Fleet Tracking

What GPS Will Do for You in 2015: the Future of Fleet Tracking What GPS Will Do for You in 2015: the Future of Fleet Tracking GPS systems confer a competitive advantage on companies that use them for fleet vehicles. Fleet managers who use GPS systems to track drivers

More information

Digital Insurance Era: Stretch Your Boundaries

Digital Insurance Era: Stretch Your Boundaries Accenture Technology Vision for Insurance 2015 Digital Insurance Era: Stretch Your Boundaries EXECUTIVE SUMMARY INTRODUCTION A new We Economy is bringing change to the insurance industry whether carriers

More information

Leveraging Information to Drive Insurer Growth

Leveraging Information to Drive Insurer Growth KNOWLEDGENT INSIGHTS volume 2 no. 5 March 27, 2012 Leveraging Information to Drive Insurer Growth In the highly competitive insurance industry, leveraging information has become a key focal point for driving

More information

Fleet Optimization with IBM Maximo for Transportation

Fleet Optimization with IBM Maximo for Transportation Efficiencies, savings and new opportunities for fleet Fleet Optimization with IBM Maximo for Transportation Highlights Integrates IBM Maximo for Transportation with IBM Fleet Optimization solutions Offers

More information

2013 North American Automotive Usage Based Insurance Customer Value Enhancement Award

2013 North American Automotive Usage Based Insurance Customer Value Enhancement Award 2013 North American Automotive Usage Based Insurance Customer Value Enhancement Award 2013 Customer Value Enhancement Award Automotive Usage Based Insurance North America, 2013 Frost & Sullivan s Global

More information

The Internet of Things: Connected Home, Auto, and Life

The Internet of Things: Connected Home, Auto, and Life The Internet of Things: Connected Home, Auto, and Life An Author: Denise Garth, SMA Partner Published Date: November, 2014 SMA Summit A Connected Experience During the 2014 SMA Summit, and for a week and

More information

The digital future for insurance.

The digital future for insurance. Digital transformation can help you tame the perfect storm. The digital future for insurance. Following the 2008 financial crisis, the insurance sector has faced tighter regulation, which has made it harder

More information

Explosive Growth Is No Accident: Driving Digital Transformation in the Insurance Industry

Explosive Growth Is No Accident: Driving Digital Transformation in the Insurance Industry Explosive Growth Is No Accident: Driving Digital Transformation in the Insurance Industry By Mike Sarantopoulos, SVP, Insurance Practice, NTT DATA, Inc. and David Liliedahl, VP, Life & Annuity Portfolio,

More information

insurance services property PART OF THE INNOVATION INSURANCE SERVICES FAMILY OF BPO SOLUTIONS

insurance services property PART OF THE INNOVATION INSURANCE SERVICES FAMILY OF BPO SOLUTIONS insurance services property PART OF THE INNOVATION INSURANCE SERVICES FAMILY OF BPO SOLUTIONS PROPERTY AND CASUALTY INSURANCE... AN ERA OF DISRUPTION AND CHANgE property Dramatic change. Regulatory demands.

More information

FWD. What the Internet of Things will mean for business

FWD. What the Internet of Things will mean for business Article 6: September 2014 Internet of Things This year the focus of business has shifted to the Internet of Things (IoT), the connection and sharing of information between objects, machines, people and

More information

BIG DATA ANALYTICS. in Insurance. How Big Data is Transforming Property and Casualty Insurance

BIG DATA ANALYTICS. in Insurance. How Big Data is Transforming Property and Casualty Insurance BIG DATA ANALYTICS in Insurance How Big Data is Transforming Property and Casualty Insurance Contents Data: The Insurance Asset 1 Insurance in the Age of Big Data 1 Big Data Types in Property and Casualty

More information

Stand on the Sidelines, or Boost Competitiveness?

Stand on the Sidelines, or Boost Competitiveness? Stand on the Sidelines, or Boost Competitiveness? How to Make Bold Moves on the New Insurance Playing Field By Ravi Malhotra The insurance playing field will look dramatically different in a digitally

More information

Stempora Group, LLC SG

Stempora Group, LLC SG and Medium Sized Companies October 3, 2011 Stempora Group, LLC SG Moderator: Gary Wang, FCAS, MAAA Pinnacle Actuarial Resources, Inc. Panelist: Jeff Stempora, Founder and CEO Stempora Group, LLC Table

More information

Business Process Management for Insurance

Business Process Management for Insurance Insurance the way we see it Business Process Management for Insurance Maintain Market Share and Profitability With a Staged Approach to BPM Contents 1 Introduction 3 2 Business Process Management: Trends

More information

Don t be the last to know.

Don t be the last to know. White Paper Commercial Portfolio Risk Management Doesn t Stop with Underwriting Don t be the last to know. Carriers that proactively manage risk during the policy term can better anticipate and respond

More information

The Complete Guide to CUSTOM FIELD SERVICE APPLICATIONS

The Complete Guide to CUSTOM FIELD SERVICE APPLICATIONS The Complete Guide to CUSTOM FIELD SERVICE APPLICATIONS Copyright 2014 Published by Art & Logic All rights reserved. Except as permitted under U.S. Copyright Act of 1976, no part of this publication may

More information

Insurance Solutions. 17 October 2013. Risk Solutions

Insurance Solutions. 17 October 2013. Risk Solutions Insurance Solutions 17 October 2013 FORWARD LOOKING STATEMENTS This presentation contains forward looking statements within the meaning of Section 27A of the US Securities Act of 1933, as amended, and

More information

Electronic data interchange and proactive services for Centricity revenue cycle management customers

Electronic data interchange and proactive services for Centricity revenue cycle management customers GE Healthcare Electronic data interchange and proactive services for Centricity revenue cycle management customers Accelerate revenue perf Key features Tight alignment with payers ensures mandates, updates

More information

WHITE PAPER COMMERCIAL LINES UBI: Insurance Telematics Opens New Opportunities

WHITE PAPER COMMERCIAL LINES UBI: Insurance Telematics Opens New Opportunities WHITE PAPER COMMERCIAL LINES UBI: Insurance Telematics Opens New Opportunities COMMERCIAL LINES UBI: INSURANCE TELEMATICS OPENS NEW OPPORTUNITIES Executive Summary 1 1. Building a Case for UBI in Commercial

More information

Uncovering More Insurance Fraud with Predictive Analytics Strategies for Improving Results and Reducing Losses

Uncovering More Insurance Fraud with Predictive Analytics Strategies for Improving Results and Reducing Losses white paper Uncovering More Insurance Fraud with Predictive Analytics Strategies for Improving Results and Reducing Losses April 2012 Summary Predictive analytics are a powerful tool for detecting more

More information

Providing drivers with actionable intelligence can minimize accidents, reduce driver claims and increase your bottom line. Equip motorists with the

Providing drivers with actionable intelligence can minimize accidents, reduce driver claims and increase your bottom line. Equip motorists with the Providing drivers with actionable intelligence can minimize accidents, reduce driver claims and increase your bottom line. Equip motorists with the ability to make informed decisions based on reliable,

More information

INTERNET OF THINGS: SCIENCE FICTION OR BUSINESS FACT?

INTERNET OF THINGS: SCIENCE FICTION OR BUSINESS FACT? A HARVARD BUSINESS REVIEW ANALYTIC SERVICES REPORT INTERNET OF THINGS: SCIENCE FICTION OR BUSINESS FACT? Copyright 2014 Harvard Business School Publishing. sponsored by SPONSOR PERSPECTIVE Each year the

More information

BIG DATA STRATEGY. Rama Kattunga Chair at American institute of Big Data Professionals. Building Big Data Strategy For Your Organization

BIG DATA STRATEGY. Rama Kattunga Chair at American institute of Big Data Professionals. Building Big Data Strategy For Your Organization BIG DATA STRATEGY Rama Kattunga Chair at American institute of Big Data Professionals Building Big Data Strategy For Your Organization In this session What is Big Data? Prepare your organization Building

More information

Electronic data interchange and proactive services for customers using revenue cycle management solutions from the Centricity portfolio

Electronic data interchange and proactive services for customers using revenue cycle management solutions from the Centricity portfolio GE Healthcare Electronic data interchange and proactive services for customers using revenue cycle management solutions from the Centricity portfolio imagination at work Accelerate revenue cycle performance

More information

Commercial Fleet Insurance Uses of Telematics Data. Dick Mahany, Baldwin & Lyons Isaac Wash, ISO

Commercial Fleet Insurance Uses of Telematics Data. Dick Mahany, Baldwin & Lyons Isaac Wash, ISO Commercial Fleet Insurance Uses of Telematics Data Dick Mahany, Baldwin & Lyons Isaac Wash, ISO Mileage = Frequency = Severity Risk Environment vs. Risk Mitigation Environment Roadway design and maintenance

More information

Setting smar ter sales per formance management goals

Setting smar ter sales per formance management goals IBM Software Business Analytics Sales performance management Setting smar ter sales per formance management goals Use dedicated SPM solutions with analytics capabilities to improve sales performance 2

More information

Alberta Private Passenger Usage Based Insurance (UBI) Implementation Process Consultation The Co-operators January 30, 2015

Alberta Private Passenger Usage Based Insurance (UBI) Implementation Process Consultation The Co-operators January 30, 2015 Alberta Private Passenger Usage Based Insurance (UBI) Implementation Process Consultation The Co-operators January 30, 2015 Friday, January 30, 2015 Mr. Mark Prefontaine Superintendent of Insurance 402

More information

Brace Yourselves For Direct Sales To Small-Business Insurance Consumers!

Brace Yourselves For Direct Sales To Small-Business Insurance Consumers! Casualty Actuarial Society Annual Meeting Brace Yourselves For Direct Sales To Small-Business Insurance Consumers! Sam Friedman, Insurance Research Leader, Deloitte Center for Financial Services Donna

More information

A ZK Research Whitepaper. November 2014. e t. It s INTERNET OF THINGS

A ZK Research Whitepaper. November 2014. e t. It s INTERNET OF THINGS A ZK Research Whitepaper November 2014 It s inesses to em s u b r o bra f e ce tim t he INTERNET OF THINGS The Era of the Internet of Things Has Arrived The term perfect storm is used to describe a scenario

More information

BIG DATA: THE INTERNET OF THINGS OPPORTUNITIES IN INSURANCE

BIG DATA: THE INTERNET OF THINGS OPPORTUNITIES IN INSURANCE BIG DATA: THE INTERNET OF THINGS OPPORTUNITIES IN INSURANCE JUNE 2015 JOSHUA SIEGEL DIRECTOR, EMC PROFESSIONAL SERVICES 1 The World Is Changing All Around Us No longer dumb, our things are rapidly becoming

More information

Improve Rating Accuracy and Segmentation for Commercial Lines auto policies

Improve Rating Accuracy and Segmentation for Commercial Lines auto policies Noble Wilson Carver Improve Rating Accuracy and Segmentation for Commercial Lines auto policies Let s start with what we should know Does UBI improve the way we segment, rate & price? Segmentation: Automated

More information

Transforming Analytics for Cognitive Business

Transforming Analytics for Cognitive Business Transforming Analytics for Cognitive Business Alistair Rennie General Manager Solutions, IBM Analytics @alistair_rennie IBM Chief Data Officer Strategy Summit Data fuels innovative offerings 28% of car

More information

Sentrollers and The Internet of Things

Sentrollers and The Internet of Things White Paper May-2013 Sentrollers and The Internet of Things By: Cees Links, Founder and CEO GreenPeak Technologies www.greenpeak.com The new buzzword floating around the world is the Internet of Things,

More information

Social Business Analytics

Social Business Analytics IBM Software Business Analytics Social Analytics Social Business Analytics Gaining business value from social media 2 Social Business Analytics Contents 2 Overview 3 Analytics as a competitive advantage

More information

HOW TO. to Executives. You know that marketing automation is the greatest thing since sliced bread. After all, what else can help you...

HOW TO. to Executives. You know that marketing automation is the greatest thing since sliced bread. After all, what else can help you... HOW TO Sell Marketing to Executives Automation You know that marketing automation is the greatest thing since sliced bread. After all, what else can help you... 1 making inroads with the corner office

More information

Analyzing Big Data: The Path to Competitive Advantage

Analyzing Big Data: The Path to Competitive Advantage White Paper Analyzing Big Data: The Path to Competitive Advantage by Marcia Kaplan Contents Introduction....2 How Big is Big Data?................................................................................

More information

Regulation and compensation. Dodd-Frank white paper

Regulation and compensation. Dodd-Frank white paper Introduction into compensation management This section will introduce some of the key challenges for the sector, and hint at a possible solution using technology 1 Compensation management in focus This

More information

UBI can help carriers attract more customers.

UBI can help carriers attract more customers. White Paper 2014 Usage-Based Insurance (UBI) Research Results for Consumer and Small Fleet Markets UBI can help carriers attract more customers. LexisNexis found that 18 percent of consumers and 27 percent

More information

Ten Ways to Generate Higher Returns from Your Innovation Investments

Ten Ways to Generate Higher Returns from Your Innovation Investments Ten Ways to Generate Higher Returns from Your Innovation Investments Next Copyright Sopheon plc. All rights reserved worldwide. This work is licensed under the Creative Commons Attribution Non-Commercial

More information

top issues An annual report

top issues An annual report top issues An annual report Volume 5 2013 Strategy: Reshaping auto insurance The insurance industry in 2013 FPO Strategy: Reshaping auto insurance Several factors aimed at road and vehicle safety are increasingly

More information

Financial Services. Uneven road ahead: Telematics poised to reshape auto insurance

Financial Services. Uneven road ahead: Telematics poised to reshape auto insurance Financial Services Uneven road ahead: Telematics poised to reshape auto insurance The broad rollout of Progressive s usage-based auto insurance, SnapShot, will come to be seen as a watershed. Snapshot

More information

Demystifying Big Data Government Agencies & The Big Data Phenomenon

Demystifying Big Data Government Agencies & The Big Data Phenomenon Demystifying Big Data Government Agencies & The Big Data Phenomenon Today s Discussion If you only remember four things 1 Intensifying business challenges coupled with an explosion in data have pushed

More information

Auto Insurance in the Era of Autonomous Vehicles

Auto Insurance in the Era of Autonomous Vehicles Auto Insurance in the Era of Autonomous Vehicles 24 th Annual Insurance Issues Conference Automobile Insurance in the Era of Autonomous Vehicles KPMG U.S. recently published two documents on Automobile

More information

Next Internet Evolution: Getting Big Data insights from the Internet of Things

Next Internet Evolution: Getting Big Data insights from the Internet of Things Next Internet Evolution: Getting Big Data insights from the Internet of Things Internet of things are fast becoming broadly accepted in the world of computing and they should be. Advances in Cloud computing,

More information

Why it Matters: The Tyranny of the Average

Why it Matters: The Tyranny of the Average Why it Matters: The Tyranny of the Average Lesson Introduction Insurance premiums and many other things are based on estimates of the behavior of like groups of people or averages, according to Dr. Julie

More information

GE Healthcare. Electronic data interchange and proactive services for Centricity revenue cycle management customers

GE Healthcare. Electronic data interchange and proactive services for Centricity revenue cycle management customers GE Healthcare Electronic data interchange and proactive services for Centricity revenue cycle management customers Accelerate revenue perf Key features updates and other payer-specific adjustments are

More information

The Connected Home. New Opportunities for Property & Casualty Insurers

The Connected Home. New Opportunities for Property & Casualty Insurers The Connected Home New Opportunities for Property & Casualty Insurers The Internet of Things (IoT) the network of intelligent machines and devices which can sense and interact with each other over the

More information

Three Ways to Improve Claims Management with Business Analytics

Three Ways to Improve Claims Management with Business Analytics IBM Software Business Analytics Insurance Three Ways to Improve Claims Management with Business Analytics Three Ways to Improve Claims Management Overview Filing a claim is perhaps the single most important

More information

Five practical actions insurance companies can take to thrive kpmg.com

Five practical actions insurance companies can take to thrive kpmg.com Thriving in the coming insurance industry transformation Five practical actions insurance companies can take to thrive kpmg.com Recent Insurance Industry Forecasts REDUCED LOSSES AND PREMIUMS AUTO INSURANCE

More information

The Definitive Guide to Social CRM

The Definitive Guide to Social CRM The Definitive Guide to Social CRM Maximizing Customer Relationships with Social Media to Gain Market Insights, Customers, and Profit Barton J. Goldenberg Chapter 1 Understanding the Intersection of CRM,

More information

Driving Down Claim Costs With PREDICTIVE MODELING. December 2011. Sponsored by:

Driving Down Claim Costs With PREDICTIVE MODELING. December 2011. Sponsored by: Driving Down Claim Costs With PREDICTIVE MODELING December 2011 Sponsored by: Driving Down Claim Costs With PREDICTIVE MODELING Executive Summary Tools based on predictive modeling are transforming claims

More information

Mobility in Claims Management

Mobility in Claims Management January 2014 Mobility in Claims Management Aparna Krishnan, SENIOR BUSINESS ANALYST, BFSI-Insurance Practice 2 CONTENTS CLAIMS TRANSFORMATION IS THE WAY TO GO 3 BUSINESS DRIVERS FOR ADOPTING MOBILE SOLUTIONS

More information

Understanding Big Data with Business Intelligence Tools Analytics Help Leverage Your Massive Amounts of Information

Understanding Big Data with Business Intelligence Tools Analytics Help Leverage Your Massive Amounts of Information Understanding Big Data with Business Intelligence Tools Analytics Help Leverage Your Massive Amounts of Information Big data is a hot topic in a variety of industries these days. Major retailers know how

More information

Shift to a sample of one.

Shift to a sample of one. White Paper : Thinking Outside the Box Shift to a sample of one. Telematics data enables carriers to accurately determine an individual driver s level of risk within weeks of program inception. October

More information

Veramark White Paper: Reducing Telecom Costs Why Invoice Management is the Best Place to Start. WhitePaper. We innovate. You benefit.

Veramark White Paper: Reducing Telecom Costs Why Invoice Management is the Best Place to Start. WhitePaper. We innovate. You benefit. Veramark White Paper: Reducing Telecom Costs Why Invoice Management is the Best Place to Start WhitePaper We innovate. You benefit. Veramark White Paper: Reducing Telecom Costs Why Invoice Management is

More information

Capitalizing on The Internet of Things: A Primer

Capitalizing on The Internet of Things: A Primer Capitalizing on The Internet of Things: A Primer Executive Summary WHEN EVERY PRODUCT YOU SELL IS CONNECTED ANY TIME, ALL THE TIME, IT FUNDAMENTALLY CHANGES HOW YOU OPERATE, HOW YOU INTERACT WITH YOUR

More information

Capturing the insurance customer of tomorrow. Three key questions to guide success

Capturing the insurance customer of tomorrow. Three key questions to guide success Capturing the insurance customer of tomorrow Three key questions to guide success Most insurers can confirm: customers want more, and more of what they want is digital. To sustain relevance in this new

More information

WHITE PAPER. Data to Diamonds Delivering valuable business insights

WHITE PAPER. Data to Diamonds Delivering valuable business insights WHITE PAPER Data to Diamonds Delivering valuable business insights In a world of uncertainty and economic challenges, data and analytics have become critical to survive. The importance of monitoring and

More information

How does your Internet of Things (IoT) strategy stack up?

How does your Internet of Things (IoT) strategy stack up? The Content Experts WEBINAR HIGHLIGHTS How does your Internet of Things (IoT) strategy stack up? September 24, 2015 SPONSORED BY Held on October 20, 2015, this webinar on the Internet of Things was facilitated

More information

Leveraging the Internet of Things in Marketing

Leveraging the Internet of Things in Marketing Leveraging the Internet of Things in Marketing Index 3 3 4 4 5 5 6 6 Introduction The Internet of Things outlook IoT and marketing Wearables: Reaching customers anywhere Location-based marketing RFID tags

More information

The Evolving Role of Technology in Insurance KEY MANAGEMENT GROUP, INC

The Evolving Role of Technology in Insurance KEY MANAGEMENT GROUP, INC The Evolving Role of Technology in Insurance KEY MANAGEMENT GROUP, INC Key Trends Redefining the Agent s work in Insurance Market Insurance is slowly emerging from its traditional underwriting methods

More information

Levering Technology to Find the Right Answers for Action

Levering Technology to Find the Right Answers for Action Levering Technology to Find the Right Answers for Action Paul Peters Senior Product Manager IBM Incentive Compensation Management Agenda Technology Improve the compensation team's ability to Automate redundant

More information

Tech-Clarity Insight: Top 5 Misconceptions about Innovation Management Software

Tech-Clarity Insight: Top 5 Misconceptions about Innovation Management Software Tech-Clarity Insight: Top 5 Misconceptions about Innovation Management Software Busting Myths to Improve Innovation, Time to Market, and Profitability Tech-Clarity, Inc. 2013. Table of Contents Executive

More information

Challenge. Solutions. Early results. Personal Lines Case Study Celina Insurance Reduces Expenses & Improves Processes Across the Business.

Challenge. Solutions. Early results. Personal Lines Case Study Celina Insurance Reduces Expenses & Improves Processes Across the Business. Celina Insurance Reduces Expenses & Improves Processes Across the Business About Celina Insurance Group Founded in 1914, Celina Insurance Group is composed of four mutual property and casualty insurance

More information

Guidewire ClaimCenter. Adapt and succeed

Guidewire ClaimCenter. Adapt and succeed Guidewire ClaimCenter Adapt and succeed Today s Challenge It s a fact that claims handling accounts for your highest cost. It also presents your greatest opportunity for satisfying customers and securing

More information

Session 2 UBI - Telematics in Motor Insurance. David Dou, FCAS

Session 2 UBI - Telematics in Motor Insurance. David Dou, FCAS Session 2 UBI - Telematics in Motor Insurance David Dou, FCAS UBI - Telematics in Motor Insurance David Dou Co founder, Carbox November 16, 2016 UBI - Telematics in Motor Insurance Background of Telematics

More information

Service & Engagement: How to step up and stand out in this era of social and technical change

Service & Engagement: How to step up and stand out in this era of social and technical change Service & Engagement: How to step up and stand out in this era of social and technical change In the next few pages, we share our point of view on the drivers that are changing customer expectations and

More information

FORGE A PERSONAL CONNECTION

FORGE A PERSONAL CONNECTION ONLINE REPORT SPONSORED BY: SNAPSHOT: FORGE A PERSONAL CONNECTION EMPLOY CRM IN HIGHER EDUCATION TO STREAMLINE AND SOLIDIFY STUDENT RECRUITING AND RETENTION. INSIDE P2 DEPLOY AN INTEGRATED CRM SYSTEM P3

More information

Preparing for Big Data for SoC/IC Design By Dean Drako, IC Manage President & CEO DAC 2014 Multi-Site Design Panel Opening Remarks (edited transcript)

Preparing for Big Data for SoC/IC Design By Dean Drako, IC Manage President & CEO DAC 2014 Multi-Site Design Panel Opening Remarks (edited transcript) Preparing for Big Data for SoC/IC Design By Dean Drako, IC Manage President & CEO DAC 2014 Multi-Site Design Panel Opening Remarks (edited transcript) One of the things we are working on at IC manage is

More information

Accenture Insurance. Are you getting the most value from your policy administration investment?

Accenture Insurance. Are you getting the most value from your policy administration investment? Accenture Insurance Are you getting the most value from your policy administration investment? Most Property & Casualty (P&C) insurers now view replacing or modernizing their policy administration system

More information

GLOBAL PROPERTY. Commercial Property START

GLOBAL PROPERTY. Commercial Property START Commercial Property START A LEADER About Global Property AIG s Global Property division brings sophisticated and extensive capabilities to our clients risk management programs. AIG s unrivalled worldwide

More information

A new paradigm in P&C Industry Pricing

A new paradigm in P&C Industry Pricing The New Paradigm of Property & Casualty Insurance Pricing: Multivariate analysis and Predictive Modeling The ability to effectively price personal lines insurance policies to accurately match rate with

More information

Voice of the Customer: How to Move Beyond Listening to Action Merging Text Analytics with Data Mining and Predictive Analytics

Voice of the Customer: How to Move Beyond Listening to Action Merging Text Analytics with Data Mining and Predictive Analytics WHITEPAPER Voice of the Customer: How to Move Beyond Listening to Action Merging Text Analytics with Data Mining and Predictive Analytics Successful companies today both listen and understand what customers

More information

Process Intelligence: An Exciting New Frontier for Business Intelligence

Process Intelligence: An Exciting New Frontier for Business Intelligence February/2014 Process Intelligence: An Exciting New Frontier for Business Intelligence Claudia Imhoff, Ph.D. Sponsored by Altosoft, A Kofax Company Table of Contents Introduction... 1 Use Cases... 2 Business

More information

The ABCs of CRM. 1003 W. Ninth Avenue, 2nd Floor King of Prussia, PA 19406 T (610) 337-8400 F (610) 337-8490 www.sedonacorp.com

The ABCs of CRM. 1003 W. Ninth Avenue, 2nd Floor King of Prussia, PA 19406 T (610) 337-8400 F (610) 337-8490 www.sedonacorp.com The ABCs of CRM 1003 W. Ninth Avenue, 2nd Floor King of Prussia, PA 19406 T (610) 337-8400 F (610) 337-8490 www.sedonacorp.com The objective of Customer Relationship Management (CRM) boils down to one

More information

CAS Seminar on Ratemaking! "! ###!!

CAS Seminar on Ratemaking! ! ###!! CAS Seminar on Ratemaking $%! "! ###!! !"# $" CAS Seminar on Ratemaking $ %&'("(& + ) 3*# ) 3*# ) 3* ($ ) 4/#1 ) / &. ),/ &.,/ #1&.- ) 3*,5 /+,&. ),/ &..- ) 6/&/ '( +,&* * # +-* *%. (-/#$&01+, 2, Annual

More information

Bringing Sexy Back to Insurance

Bringing Sexy Back to Insurance Bringing Sexy Back to Insurance USING BIG DATA ANALYTICS TO DERIVE VALUE IN YOUR UBI PROGRAM Deriving Value From UBI Revenue Retention Recruitment VALUE Decide why you need a UBI program There s Gold in

More information

From the Editors Desk Mobile Payments 01. Realigning Mobile Payments: An Open System Solution 05 for an Evolving Industry

From the Editors Desk Mobile Payments 01. Realigning Mobile Payments: An Open System Solution 05 for an Evolving Industry Content Preface From the Editors Desk Mobile Payments 01. Realigning Mobile Payments: An Open System Solution 05 for an Evolving Industry 02. Mobile Money Transfers: Opportunities and Challenges 13 in

More information

IBM Business Analytics software for Insurance

IBM Business Analytics software for Insurance IBM Business Analytics software for Insurance Nischal Kapoor Global Insurance Leader - APAC 2 Non-Life Insurance in Thailand Rising vehicle sales and mandatory motor third-party insurance supported the

More information

Data makes all the difference.

Data makes all the difference. White Paper, Earlier: The Value of Incorporating and makes all the difference. LexisNexis research shows that carriers can reduce severity payments by up to 25 percent. June 2014 Risk Solutions Insurance

More information

A tailored approach to risk management ENERGY PRACTICE

A tailored approach to risk management ENERGY PRACTICE ENERGY PRACTICE A tailored approach to risk management Insurance Brokerage Benefits & Retirement Consulting Claims Administration & Advocacy Fiduciary Advisors Alternative Risk Program & Administration

More information

Automotive Engineering Change: The Key to Cost Reduction for Competitive Advantage

Automotive Engineering Change: The Key to Cost Reduction for Competitive Advantage Engineering Change: The Key to Cost Reduction for Competitive The automotive industry has seen significant change over the last couple of decades, but looking to the future, there will be even more significant

More information

Growing Customer Value, One Unique Customer at a Time

Growing Customer Value, One Unique Customer at a Time Increasing Customer Value for Insurers How Predictive Analytics Can Help Insurance Organizations Maximize Customer Growth Opportunities www.spss.com/perspectives Introduction Trends Influencing Insurers

More information

DRIVE PROFITABLE REVENUE AND KEEP CUSTOMERS COMING BACK. Usage-Based Insurance

DRIVE PROFITABLE REVENUE AND KEEP CUSTOMERS COMING BACK. Usage-Based Insurance DRIVE PROFITABLE REVENUE AND KEEP CUSTOMERS COMING BACK. Usage-Based Insurance ADVANCES IN MACHINE-TO-MACHINE (M2M) TECHNOLOGY HAVE GIVEN RISE TO MORE INTERACTIVE AND INSIGHTFUL METHODS FOR TRACKING DRIVER

More information

Realizing Hidden Value: Optimizing Utility Field Service Performance by Measuring the Right Things

Realizing Hidden Value: Optimizing Utility Field Service Performance by Measuring the Right Things Energy and Utility Insights Realizing Hidden Value: Optimizing Utility Field Service Performance by Measuring the Right Things Utilities Realizing Hidden Value About the Author Rob Milstead serves as the

More information

Choosing a Location-based Application for your Business

Choosing a Location-based Application for your Business Choosing a Location-based Application for your Business A Step-by-Step Guide Executive Summary The following guide provides some simple steps that will help you understand how a location-based application

More information

DRIVE SAFELY INTO THE FUTURE

DRIVE SAFELY INTO THE FUTURE DRIVE SAFELY INTO THE FUTURE Technology has changed the way vehicles are built and used. In tandem, the motor insurance sector too has new challenges and opportunities ahead on the road to success. www.wipro.com

More information

Systems of Discovery The Perfect Storm of Big Data, Cloud and Internet-of-Things

Systems of Discovery The Perfect Storm of Big Data, Cloud and Internet-of-Things Systems of Discovery The Perfect Storm of Big Data, Cloud and Internet-of-Things Mac Devine CTO, IBM Cloud Services Division IBM Distinguished Engineer wdevine@us.ibm.com twitter: mac_devine Forecast for

More information

Predicting From the Edge in an

Predicting From the Edge in an Predicting From the Edge in an IoT World IoT will produce 4,400 exabytes of data or 4,400 billion terabytes between 2013 and 2020. (IDC) Today, in the Internet of Things (IoT) era, the Internet touches

More information

USING IDENTITY MONITORING SERVICES TO BOOST BRAND AWARENESS AND CUSTOMER RETENTION

USING IDENTITY MONITORING SERVICES TO BOOST BRAND AWARENESS AND CUSTOMER RETENTION USING IDENTITY MONITORING SERVICES TO BOOST BRAND AWARENESS AND CUSTOMER RETENTION IDT911 1 CAREFULLY CHOOSE THE RIGHT PARTNER FOR IDENTITY MONITORING SERVICES TO AVOID MARGINALIZING YOUR FINANCIAL INSTITUTION

More information

Telematics. The New Auto Insurance

Telematics. The New Auto Insurance Telematics The New Auto Insurance By Alex Laurie Telematic technologies are approaching a tipping point as obstacles to their widespread application are overcome in rapid succession. How are these technologies

More information

BIG DATA, BIGGER OPPORTUNITIES

BIG DATA, BIGGER OPPORTUNITIES BIG DATA, BIGGER OPPORTUNITIES TECHNOLOGY WILL IGNITE POST-FINANCIAL CRISIS OPPORTUNITY AND GROWTH FOR THE INSURANCE INDUSTRY. By Chandan Sharma and Stephen Busateri THE GLOBAL FINANCIAL CRISIS OF 2008

More information

Insurance & Liability Breakout Session - TRB Symposium July 2015 Insuring Autonomous Vehicles Changes? Challenges? Opportunities?

Insurance & Liability Breakout Session - TRB Symposium July 2015 Insuring Autonomous Vehicles Changes? Challenges? Opportunities? Insurance & Liability Breakout Session - TRB Symposium July 2015 Insuring Autonomous Vehicles Changes? Challenges? Opportunities? 1 2 Earliest Form of Autonomous Transportation 3 More Recent Autonomous

More information

DATAMEER WHITE PAPER. Beyond BI. Big Data Analytic Use Cases

DATAMEER WHITE PAPER. Beyond BI. Big Data Analytic Use Cases DATAMEER WHITE PAPER Beyond BI Big Data Analytic Use Cases This white paper discusses the types and characteristics of big data analytics use cases, how they differ from traditional business intelligence

More information

ECONOMICS & COUNTRY RISK. Solution Overview for Manufacturing Companies

ECONOMICS & COUNTRY RISK. Solution Overview for Manufacturing Companies ECONOMICS & COUNTRY RISK Solution Overview for Manufacturing Companies Shifting economic power and emerging risks creates uncertainty across global markets. In order to maintain a competitive advantage

More information

Unlocking The Value of the Deep Web. Harvesting Big Data that Google Doesn t Reach

Unlocking The Value of the Deep Web. Harvesting Big Data that Google Doesn t Reach Unlocking The Value of the Deep Web Harvesting Big Data that Google Doesn t Reach Introduction Every day, untold millions search the web with Google, Bing and other search engines. The volumes truly are

More information

4.5% 2014 Digital Marketing Optimization Survey results > 4.5% Top lessons learned from the leaders

4.5% 2014 Digital Marketing Optimization Survey results > 4.5% Top lessons learned from the leaders 2014 Digital Marketing Optimization Survey results Top lessons learned from the leaders Table of contents 1: Introduction 2: Five lessons from the top 20% #1: They test to make decisions 3: #2: They put

More information