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Transforming Insurance Operations
through Data and Analytics
Roger Oldham

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A day in the life of ……..

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About Speaker: Roger Oldham
• Founder and Managing Director of London Market
Technology Exchange; London Market People.
• 28 years in the London Insurance Market. Industry
change and modernisation specialist.
• Ex-Head of Claims and Head of Market Practice
positions in Aon, HSBC Insurance Brokers and Marsh.
• Qualified Mediator of the Chartered Institute of
Arbitrators in London and Fellow of the Chartered
Insurance Institute.
• Non-Executive Advisor to Datalytyx
Roger Oldham
BA(Hons) FCII MCIArb FInstLM

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Objectives Today
1. Analytics in Insurance
State of market Readiness
Uses per sector of insurance
2. Compliance and Regulation
Challenges
3. Other challenges re data
“Accidental Architecture”
Data access challenges

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My sector definitions for InsurancePersonal/Retail
• High volume, low
value
• Life, Health, Home,
etc.
• Composite
providers
Corporate/Wholesale
• Low volume, high
value
• Marine, aviation,
property, casualty
• Insurance binders
Reinsurance
• Risk transfer and
arbitrage
• Treaty reinsurance
• Facultative
Reinsurance

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Insurance Market
State of Readiness for Big Data & Analytics

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86% of insurance
CEOs believe
technological advances
will transform their
businesses in the next
3 to 5 years – more
than any other factor.
Unleashing the Value of
Advanced Analytics in
Insurance – McKinsey
(2013)
“Innovations in analytics
modelling will also enable
carriers to underwrite
many other emerging
risks that are
underinsured including
cybersecurity and
industry-wide business
interruption stemming from
natural disasters.”
Lots of commentators……..
“Big data will
undoubtedly be the
thing that will
reshape our
industry.”
17th Annual Global CEO
Survey - Key Findings in
the Insurance Industry
PWC
February, 2014
Can Reinsurers Ignore
Big Data? – Bryan
Joseph, Partner and
Global Actuarial Leader,
PWC, March, 2014

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Global Data Analytics Survey (for Insurance), 2014, PWC
Infographic - Global Data & Analytics Survey 2014 (for Insurance)
PriceWaterhouseCoopers, September 2014
Executives
71% yes - have
changed the way they
approach decision
making as a result of
data analytics
23% no , but plan to

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Uses
Interesting
No mention of analytics
for compliance &
regulation

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In summary …….. its multi-speed!
ReinsuranceCorporate / WholesalePersonal/Retail

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Analytics distinctly different per insurance sector…..Personal/Retail
• Fraud analytics and
detection
• Behavioural analytics
• Geospatial analytics:
property, weather, etc.
• Affinity groups Corporate/Wholesale
• Geospatial analytics:
transit routes, flight
paths
• Political and territorial
risk predictive
analytics
• Binders Analytics: per
binder contract, per
peril, etc.
Reinsurance
• Complex analytics e.g.
probability distributions
• Catastrophe modelling
based on actuarial
analytics
• Distribution of outcome
and contract pricing
Compliance & Regulatory Analytics re: claims handling,
complaints handling, solvency, liquidity, treat customers fairly, etc.

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Consider the challenges of compliance and regulation
What are the specific challenges
around:
• Compliance
• Regulations
• Performance optimisation

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Regulation increasing………and it now has teeth!!!
Regulators: FCA / PRA
• Liquidity & Capital Adequacy
• Solvency II
• Transparency Framework
• Claims Handling
• Complaint Handling
• Treating customer fairly
• Changes in global risk profiles
Fines
• Swinton Group - £7.38m
• Besso - £315k
• Stonebridge International
Insurance - £8.4m
• Homeserve - £30m
• Debeka (Germany) - £1.3m
Challenges
• Constantly evolving
• Changing landscape
• New demands
• Existing infrastructure
doesn’t often support
• Added cost
• Cant deliver the
“evidence” without data
analytics (or a ton of
people)

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London markets ……
• Lloyds is another
regulator
• Evidence adherence to
business plan / policies
• Ensuring meeting
capital adequacy
• Time consuming without
data & analytics

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More than X number
of complaints upheld
against
an adviser
More than X% of
business with one
provider.
X% of files reviewed
revealed issues that require
significant remedial action.
Compliance
/ Regulation
Measures
Brokers
Commissions Binder Activity
Complaints
Volume/Values Monitoring
Underwriting
Loss ratios Transparency
Claims
Solvency Performance
Underwriting
Claims
Complaints
Financial
Domains

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So……
What are the practical
challenges to delivering
on Big Data & Analytics?

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Accidental Architecture … anatomy of an insurer
3rd Party Data Subscriptions
Unstructured documents, emails
Clickstream
Server logs
Sentiment, Web Data
Sensor. Telematics
Geolocation, Spatial
Existing Data Infrastructure New Data Sources

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Challenges …….
• You need to physically get access the data
• There are often ‘data guardians’
• You need a place to put it all
• Data quality will be an issue (declarations)

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But what advice
on solutions
can a non-techy
offer you?

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I like the “Data Lake” as a concept - C-suite does also

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Non-exec Advisor to Datalytyx
Cloud & Managed Services for
Big Data & Analytics
Data Quality & MDM
Enterprise Information Management
Data Swiss Army Knife for
Data Integration / Management
Data Quality
Big Data Integration

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Datalytyx Cloud – Big Data Analytics & Performance
Datalytyx Cloud for Analytics & Performance
Customer Data
Sources
PERFORMANCE / GOVERNANCE
GOVERNANCE
STRUCTURE AND
DATABASE
Scorecards
Measures and KPIs
Targets & Thresholds
▶ Sap
▶ Oracle
▶ Agresso
▶ Infor
▶ Concur
CORE BUSINESS DATA SOUCES
▶ Remedy, HP, CA
▶ Tivoli, Openview, BMC
▶ Project/Portfolio Management
▶ Capacity and Utilization Systems
▶ Backup/Monitoring Systems
▶ Financial Systems
▶ Cloud Systems
▶ Customer Satisfaction Systems
▶ 3rd Party System
▶ Web Logs & Click streams
▶ Machine generated
▶ Geolocation data
▶ Marketing automation systems
OTHER POTENTIAL DATA SOURCES
▶ (Spread Sheets)
▶ (CSV Export)
▶ (Text Delimited)
OTHER FLATFILE SOURCES
▶ Salesforce
▶ Netsuite
HIGH SPEED DATA ANALYTICS & DISCOVERY
DATA CLEANSING / MANAGEMENT
Custom Data
Cleansing & Data
Processing Rules
Various
Extracts
Various
Extracts
Various
Extracts
Clean Data
Data Lake of
High Quality
Data
Action, Issue, Risk, Milestone,
Service Improvement Tracking
CSV
HP Vertica High Speed Analytics Tableau
Governance Scorecard
Analytics Scorecard

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Datalytyx & Talend - Finance & Insurance Customers

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Thanks & Questions