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Analytics for Insurance

Book Description

The business guide to Big Data in insurance, with practical application insight

Big Data and Analytics for Insurers is the industry-specific guide to creating operational effectiveness, managing risk, improving financials, and retaining customers. Written from a non-IT perspective, this book focusses less on the architecture and technical details, instead providing practical guidance on translating analytics into target delivery. The discussion examines implementation, interpretation, and application to show you what Big Data can do for your business, with insights and examples targeted specifically to the insurance industry. From fraud analytics in claims management, to customer analytics, to risk analytics in Solvency 2, comprehensive coverage presented in accessible language makes this guide an invaluable resource for any insurance professional.

The insurance industry is heavily dependent on data, and the advent of Big Data and analytics represents a major advance with tremendous potential – yet clear, practical advice on the business side of analytics is lacking. This book fills the void with concrete information on using Big Data in the context of day-to-day insurance operations and strategy.

  • Understand what Big Data is and what it can do
  • Delve into Big Data's specific impact on the insurance industry
  • Learn how advanced analytics can revolutionise the industry
  • Bring Big Data out of IT and into strategy, management, marketing, and more

Big Data and analytics is changing business – but how? The majority of Big Data guides discuss data collection, database administration, advanced analytics, and the power of Big Data – but what do you actually do with it?  Big Data and Analytics for Insurers answers your questions in real, everyday business terms, tailored specifically to the insurance industry's unique needs, challenges, and targets.

Table of Contents

  1. Cover
  2. Series Page
  3. Title Page
  4. Copyright
  5. Preface
  6. Acknowledgements
  7. About the Author
  8. Chapter 1: Introduction – The New ‘Real Business’
    1. 1.1 On the Point of Transformation
    2. 1.2 Big Data and Analytics for All Insurers
    3. 1.3 How Do Analytics Actually Work?
    4. Notes
  9. Chapter 2: Analytics and the Office of Finance
    1. 2.1 The Challenges of Finance
    2. 2.2 Performance Management and Integrated Decision-Making
    3. 2.3 Finance and Insurance
    4. 2.4 Reporting and Regulatory Disclosure
    5. 2.5 GAAP and IFRS
    6. 2.6 Mergers, Acquisitions and Divestments
    7. 2.7 Transparency, Misrepresentation, The Securities Act and ‘SOX’
    8. 2.8 Social Media and Financial Analytics
    9. 2.9 Sales Management and Distribution Channels
    10. Notes
  10. Chapter 3: Managing Financial Risk Across the Insurance Enterprise
    1. 3.1 Solvency II
    2. 3.2 Solvency II, Cloud Computing and Shared Services
    3. 3.3 ‘Sweating the Assets’
    4. 3.4 Solvency II and IFRS
    5. 3.5 The Changing Role of the CRO
    6. 3.6 CRO as Customer Advocate
    7. 3.7 Analytics and the Challenge of Unpredictability
    8. 3.8 The Importance of Reinsurance
    9. 3.9 Risk Adjusted Decision-Making
    10. Notes
  11. Chapter 4: Underwriting
    1. 4.1 Underwriting and Big Data
    2. 4.2 Underwriting for Specialist lines
    3. 4.3 Telematics and User-Based Insurance as an Underwriting Tool
    4. 4.4 Underwriting for Fraud Avoidance
    5. 4.5 Analytics and Building Information Management (BIM)
    6. Notes
  12. Chapter 5: Claims and the ‘Moment of Truth’
    1. 5.1 ‘Indemnity’ and the Contractual Entitlement
    2. 5.2 Claims Fraud
    3. 5.3 Property Repairs and Supply Chain Management
    4. 5.4 Auto Repairs
    5. 5.5 Transforming the Handling of Complex Domestic Claims
    6. 5.6 Levels of Inspection
    7. 5.7 Motor Assessing and Loss Adjusting
    8. Notes
  13. Chapter 6: Analytics and Marketing
    1. 6.1 Customer Acquisition and Retention
    2. 6.2 Social Media Analytics
    3. 6.3 Demography and How Population Matters
    4. 6.4 Segmentation
    5. 6.5 Promotion Strategy
    6. 6.6 Branding and Pricing
    7. 6.7 Pricing Optimization
    8. 6.8 The Impact of Service Delivery on Marketing Success
    9. 6.9 Agile Development of New Products
    10. 6.10 The Challenge of ‘Agility’
    11. 6.11 Agile Vs Greater Risk?
    12. 6.12 The Digital Customer, Multi- and Omni-Channel
    13. 6.13 The Importance of the Claims Service in Marketing
    14. Notes
  14. Chapter 7: Property Insurance
    1. 7.1 Flood
    2. 7.2 Fire
    3. 7.3 Subsidence
    4. 7.4 Hail
    5. 7.5 Hurricane
    6. 7.6 Terrorism
    7. 7.7 Claims Process and the ‘Digital Customer’
    8. Notes
  15. Chapter 8: Liability Insurance and Analytics
    1. 8.1 Employers' Liability and Workers' Compensation
    2. 8.2 Public Liability
    3. 8.3 Product Liability
    4. 8.4 Directors and Officers Liability
    5. Notes
  16. Chapter 9: Life and Pensions
    1. 9.1 How Life Insurance Differs from General Insurance
    2. 9.2 Basis of Life Insurance
    3. 9.3 Issues of Mortality
    4. 9.4 The Role of Big Data in Mortality Rates
    5. 9.5 Purchasing Life Insurance in a Volatile Economy
    6. 9.6 How Life Insurers Can Engage with the Young
    7. 9.7 Life and Pensions for the Older Demographic
    8. 9.8 Life and Pension Benefits in the Digital Era
    9. 9.9 Life Insurance and Bancassurers
    10. Notes
  17. Chapter 10: The Importance of Location
    1. 10.1 Location Analytics
    2. 10.2 Telematics and User-Based Insurance (‘UBI’)
    3. Notes
  18. Chapter 11: Analytics and Insurance People
    1. 11.1 Talent Management
    2. 11.2 Talent, Employment and the Future of Insurance
    3. 11.3 Learning and Knowledge Transfer
    4. 11.4 Leadership and Insurance Analytics
    5. Notes
  19. Chapter 12: Implementation
    1. 12.1 Culture and Organization
    2. 12.2 Creating a Strategy
    3. 12.3 Managing the Data
    4. 12.4 Tooling and Skillsets
    5. Notes
  20. Chapter 13: Visions of the Future?
    1. 13.1 Auto 2025
    2. 13.2 The Digital Home in 2025 – ‘Property Telematics’
    3. 13.3 Commercial Insurance – Analytically Transformed
    4. 13.4 Specialist Risks and Deeper Insight
    5. 13.5 2025: Transformation of the Life and Pensions Industry
    6. 13.6 Outsourcing and the Move Away from Non-Core Activities
    7. 13.7 The Rise of the Super Supplier
    8. Notes
  21. Chapter 14: Conclusions and Reflections
    1. 14.1 The Breadth of the Challenge
    2. 14.2 Final Thoughts
    3. Notes
  22. Appendix A: Recommended Reading
  23. Appendix B: Data Summary of Expectancy of Reaching 100
  24. Appendix C: Implementation Flowcharts
  25. Appendix D: Suggested Insurance Websites
  26. Appendix E: Professional Insurance Organizations
  27. Index
  28. End User License Agreement