InetSoft Webinar: The Concept of Enterprise Analytics

Below is the continuation of the transcript of a Webinar hosted by InetSoft on the topic of Data Analytics in the Insurance Industry. The presenter is Christopher Wren, principal at TFI Consulting.

We've spoken a little about the whole concept of the analytical enterprise. This slide tries to reflect that. Analytics in the insurance organization is interconnected. Of course, we can start anywhere on this wheel, but let's start just for the sake of a particular point in the area of risk appetite. The topic of risk tends to underpin the strategy of an insurance company.

Risk starts driving issues like underwriting and pricing, and of course, then that's not influencing the whole topic of marketing and distribution because if the insurance company identifies what they want to underwrite and want the price competitively, then that informs the marketing and go to market strategy generally.

Once you've identified what they are selling and who they are selling to, there is a whole issue of the servicing topic including claims management. Claims we recognize as being the moment of truth in the insurance value chain.

The claim service invaluably involves the use of the supply chain system. Claim settlement is based on supply chain management, and analytics can be a key tool in terms of how we actually deliver that.

If supply chain management is poorly done, then that gives rise to operational risk which takes you all the way round again in terms of risk appetite and solvency. It's a complex and interactive model.

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Converged Insight Becomes Critical

At the end of the day converged insight becomes critical, and by converged insight we mean the convergence of data which you are currently holding perhaps with the addition of weather data, location data, data in context, external data, open data, multiple sources of relevant data all pulled together via an analytical fata mashup solution like InetSoft's to help transform enterprise wide decision making.

Another interesting comment recently was that that 50% of business leaders think that their existing business model will be out of date within five years, and I wondered about the other 50%. Maybe in five years if they don't change perhaps they won't be in business.

Let's look a little further into the future. With all these changes what will your future world look like? We think in terms of changed business models driven by analytical insight rather than the traditional way of doing things. With these models which have adopted that innovating to zero approach, they have become friction free. Friction has been taken out all the non-added value functions. Five years ago who would have thought that whole telematics agenda for the vehicle would have been quite dominant, and in five years the connected home and the connected person may be equally compelling.

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New Analytic Skills in Roles and Professions

In the future world what will this mean for the new analytic skills in roles and professions? How are the professional institutes likely to respond to that? Does the attorney of the future still need to depend on traditional case law for example, when perhaps an analytical solution might help with that? Really what will the future look like, and what are you' doing today to help change yourself for the future.

Different organizational structures may emerge. No, actually almost certainly they will emerge simply because information is by its nature democratic. It will change the way organizations work, and hierarchies will inevitably change. I think we'll end up with new styles of leadership, and I say that because the only model of leadership, the guy standing at the front waving the flag shouting follow me is beginning to change.

These guys and women of course will have no experience of working in this data and analytical world going forward. Perhaps someone arguing that leadership will no longer be a person but rather a closer shifting from team to team. It's a really interesting world going forward. Who ever said that the insurance industry was a boring topic?

To conclude my particular section, I'd like to identify what I described as being the four key building blocks of change. The first one inevitably is the issue of technology. I came into the technology sector 10 years ago because I recognized that the technology was the key enabler for change in the insurance sector, and that technology will be in terms of cloud, or fintech, or analytics, or mobile.

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Challenge of Analytic Talent Management

Technology in its own right won't be the single solution. The second part is the challenge of talent management. People will invariably need to change, change the way they work, change the way they develop simply because of the impact of the technology. That takes us into areas of training and enablement.

The third building block for change is the issue of leadership. How will the leaders develop? How will they give a vision for the future? How will they create the call to action to help individuals and organization to follow?

The fourth key building block is the issue of implementation. Over the past decade or so many of the insurers I've spoken to invariably ask me the question, I understand but how do I do it? Where do I start? How can I show the benefit? How do I calculate the return on investment? With that I'll hand over to Natalie and say thank you for the moment, and I will join you later for the Q&A.

Natalie: Thanks, Christopher, that's great. I would just like to remind everybody that if you have any questions about what Christopher was talking about there, you can enter your questions on the right hand side of the screen. We will be answering questions at the end of the presentation.

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