A presentation about data disruption in insurance by Florian Douetteau (co-founder at Dataiku) during our event "Barbares Attaquent" at TheFamily, where we zoom in one industry disrupted by the barbarians from Silicon Valley.
4. 6/6/13Dataiku 4
Why a data lab ?
Personalize for Survival
+ Sale Price
- Buy Price
- Discount
- Advertising Costs
- Indirect Advertising Costs
- Search Optimization Costs
- Cloud Marginal Costs
+ Recurrence
+ Loyalty ?
-----------
Predicted Deal Value
+ Sale Price
- Buy Price
~ SEO
-----------
Margin
Simple Funnel Model Multiple Contact Points Model
E-Commerce 2001 E-Commerce 2013
5. } New Team } New Tech
} New “M” Paradigm
◦ Let the machine decide,
not the meeting
6/6/13Dataiku 5
Data Lab
Business Guy Data Scientist
Tech Guy
6. Is your data lab ready ?
6/6/13Dataiku 6
Can you bring in …
What is your ability to integrate a new
smart guy and give him any
data he would need and any computing
power he would need to enhance
your product ?
?
8. Data Usage Evolution
6/6/13Dataiku 8
Linear
Generalized
Linear
Model
CART
MARS
Neural Networks
PricingBusiness
Scope
Model
Complexity
Data
Scope
Pricing
Underwriting
Retention
Pricing
Underwriting
Retention
Fraud
Recruitment
Internal
Internal
Demographics
Agency Data
Internal
Demographics
Agency Data
Open Data
Real-Time Flow
1990’s 2000’s Soon
9. How do you combine data ?
6/6/13Dataiku 9
DATA
Price Score
Retention Score
Affiliate Score
Risk Score
…
Combine at
the strategic
or individual
level ?
10. What is your practice w.r.t Churn ?
6/6/13Dataiku 10
Data
Profitability
Analytics
Key Drivers
Strategic Objectives
Marketing Plans
Enhance Scorer
Effect
Measurement
1 year ? 5 years ?
11. Acquire, Manage, Release
each customer individually,
throughout his life and key
events
} Gather all relevant data,
even partial or inaccurate
} Share methods and
algorithms between CRM
and Risk Analytics
} Run Global A/B Tests.
Don’t decide from
reports.
Churn: The Digital Way
6/6/13Dataiku 11
New House
New Girlfriend?
Phone+Mail
Campaign
Liked “Vodka”
On Facebook
New Car
Specific Risk
Detected
Birth
Death
Mobile Info
Travel To China?
New Girlfriend?
New Car
Change Bank
Discount
Offering
Specific
Risk
Detected
13. 6/6/13Dataiku 13
Online Advertising Revolution
October 23, 2000
Large Amount of User Data Product Ability
New Business Model Data Processing And Predictive Capabilities
15. 6/6/13Dataiku 15
Insurance Telematics
New Services New Product Delivery
New Business Model Data Processing and Predictive Capabilities
Performance Monitoring
+ Theft recovery
+ Performance
+ Oil Savings
Progressive (2011):
2 billions miles of data
16. Progressive (Snapshot) - State Farm
- AllState (DriveWise) - Nationwide
(SmartRide) - Hartford (TrueLane) -
Esurance (DriveSense) - State Farm
(Ford Sync) - CSE (Save) - Elephant
(DriveIQ) - Dtric (Akamai) - Metro
Mile - Insure The Box - ….
Car Insurance Telematics:
From 1997 to 2013 and beyond …
6/6/13Dataiku 16
Source: ABI Research, “Insurance Telematics”, Q1 2012
20. 6/6/13Dataiku 20
User Based Insurance
Next : Health ?
Kyruus
Find the most efficient
doctor for each patient
Validic
Connect mobile
health apps
Practice Fusion
Free, Web-Based
Electronic Web Records
Today: Data Generation
Health Digitalization Startups
Tomorrow
Personalized Insurance ?
Patient driven
platform to share online
information with physician
Linked-in for physicians
24. 6/6/13Dataiku 24
Online Advertising Revolution
October 23, 2000
Large Amount of User Data Product Ability
New Business Model Data Processing And Predictive Capabilities
26. 6/6/13Dataiku 26
In 10 years:
Assurance as a platform ?
Collect Customer Data Pricing and Product Conception
Underwriting and
Distribution
Risk Analytics As A Service
27. 6/6/13Dataiku 27
User Based Insurance in 10 years:
Who will…
Driive
Collect Customer Data Pricing and Product Conception
Underwriting and
Distribution
Risk Analytics As A Service