Preface |
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xiii | |
Acknowledgements |
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xv | |
About the Author |
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xvii | |
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Chapter 1 Introduction -- The New `Real Business' |
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1 | (24) |
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1.1 On the Point of Transformation |
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2 | (8) |
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1.1.1 Big Data Defined by Its Characteristics |
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3 | (3) |
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1.1.2 The Hierarchy of Analytics, and How Value is Obtained from Data |
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6 | (1) |
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1.1.3 Next Generation Analytics |
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7 | (2) |
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1.1.4 Between the Data and the Analytics |
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9 | (1) |
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1.2 Big Data and Analytics for All Insurers |
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10 | (7) |
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1.2.1 Three Key Imperatives |
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10 | (3) |
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1.2.2 The Role of Intermediaries |
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13 | (1) |
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1.2.3 Geographical Perspectives |
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14 | (1) |
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1.2.4 Analytics and the Internet of Things |
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15 | (1) |
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1.2.5 Scale Benefit -- or Size Disadvantage? |
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15 | (2) |
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1.3 How Do Analytics Actually Work? |
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17 | (8) |
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1.3.1 Business Intelligence |
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18 | (2) |
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1.3.2 Predictive Analytics |
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20 | (2) |
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1.3.3 Prescriptive Analytics |
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22 | (1) |
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1.3.4 Cognitive Computing |
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23 | (1) |
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24 | (1) |
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Chapter 2 Analytics and the Office of Finance |
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25 | (12) |
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2.1 The Challenges of Finance |
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26 | (1) |
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2.2 Performance Management and Integrated Decision-Making |
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27 | (1) |
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2.3 Finance and Insurance |
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27 | (2) |
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2.4 Reporting and Regulatory Disclosure |
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29 | (1) |
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29 | (1) |
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2.6 Mergers, Acquisitions, and Divestments |
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30 | (1) |
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2.7 Transparency, Misrepresentation, the Securities Act and `SOX' |
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31 | (1) |
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2.8 Social Media and Financial Analytics |
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32 | (1) |
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2.9 Sales Management and Distribution Channels |
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33 | (4) |
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2.9.1 Agents and Producers |
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34 | (1) |
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2.9.2 Distribution Management |
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35 | (1) |
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36 | (1) |
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Chapter 3 Managing Financial Risk Across the Insurance Enterprise |
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37 | (14) |
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37 | (3) |
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3.2 Solvency II, Cloud Computing and Shared Services |
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40 | (1) |
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3.3 `Sweating the Assets' |
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40 | (1) |
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41 | (1) |
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3.5 The Changing Role of the CRO |
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42 | (3) |
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3.6 CRO as Customer Advocate |
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45 | (1) |
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3.7 Analytics and the Challenge of Unpredictability |
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45 | (1) |
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3.8 The Importance of Reinsurance |
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46 | (1) |
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3.9 Risk Adjusted Decision-Making |
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46 | (5) |
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49 | (2) |
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51 | (10) |
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4.1 Underwriting and Big Data |
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52 | (2) |
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4.2 Underwriting for Specialist Lines |
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54 | (1) |
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4.3 Telematics and User-Based Insurance as an Underwriting Tool |
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55 | (1) |
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4.4 Underwriting for Fraud Avoidance |
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56 | (1) |
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4.5 Analytics and Building Information Management (BIM) |
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57 | (4) |
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58 | (3) |
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Chapter 5 Claims and the "Moment of Truth' |
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61 | (30) |
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5.1 `Indemnity' and the Contractual Entitlement |
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61 | (1) |
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62 | (4) |
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5.2.1 Opportunistic Fraud |
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63 | (1) |
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64 | (2) |
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5.3 Property Repairs and Supply Chain Management |
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66 | (5) |
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71 | (2) |
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5.5 Transforming the Handling of Complex Domestic Claims |
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73 | (4) |
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5.5.1 The Digital Investigator |
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73 | (2) |
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5.5.2 Potential Changes in the Claims Process |
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75 | (1) |
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5.5.3 Reinvention of the Supplier Ecosystem |
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76 | (1) |
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77 | (4) |
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78 | (1) |
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5.6.2 Business Interruption |
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79 | (1) |
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80 | (1) |
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5.7 Motor Assessing and Loss Adjusting |
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81 | (10) |
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82 | (1) |
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83 | (1) |
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5.7.3 Property Claims Networks |
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84 | (3) |
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5.7.4 Adjustment of Cybersecurity Claims |
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87 | (1) |
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5.7.5 The Demographic Time Bomb in Adjusting |
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87 | (1) |
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88 | (3) |
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Chapter 6 Analytics and Marketing |
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91 | (18) |
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6.1 Customer Acquisition and Retention |
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93 | (3) |
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6.2 Social Media Analytics |
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96 | (1) |
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6.3 Demography and How Population Matters |
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97 | (1) |
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98 | (2) |
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100 | (1) |
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100 | (1) |
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101 | (1) |
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6.8 The Impact of Service Delivery on Marketing Success |
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102 | (1) |
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6.9 Agile Development of New Products |
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103 | (1) |
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6.10 The Challenge of `Agility' |
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104 | (1) |
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6.11 Agile vs Greater Risk? |
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105 | (1) |
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6.12 The Digital Customer, Multi-and Omni-Channel |
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105 | (1) |
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6.13 The Importance of the Claims Service in Marketing |
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106 | (3) |
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107 | (2) |
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Chapter 7 Property Insurance |
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109 | (18) |
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109 | (3) |
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7.1.1 Predicting the Cost and Likelihood of Flood Damage |
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110 | (1) |
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7.1.2 Analytics and the Drying Process |
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111 | (1) |
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112 | (3) |
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7.2.1 Predicting Fraud in Fire Claims |
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113 | (2) |
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115 | (4) |
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7.3.1 Prediction of Subsidence |
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116 | (3) |
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119 | (2) |
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7.4.1 Prediction of Hail Storms |
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120 | (1) |
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121 | (1) |
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7.5.1 Prediction of Hurricane Damage |
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121 | (1) |
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122 | (2) |
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7.6.1 Predicting Terrorism Damage |
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123 | (1) |
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7.7 Claims Process and the `Digital Customer' |
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124 | (3) |
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125 | (2) |
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Chapter 9 Liability Insurance and Analytics |
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127 | (8) |
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8.1 Employers `Liability and Workers' Compensation |
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127 | (4) |
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8.1.1 Fraud in Workers' Compensation Claims |
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128 | (2) |
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8.1.2 Employers' Liability Cover |
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130 | (1) |
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8.1.3 Effective Triaging of EL Claims |
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130 | (1) |
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131 | (1) |
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132 | (1) |
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8.4 Directors and Officers Liability |
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133 | (2) |
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134 | (1) |
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Chapter 9 Life and Pensions |
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135 | (14) |
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9.1 How Life Insurance Differs from General Insurance |
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136 | (1) |
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9.2 Basis of Life Insurance |
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137 | (1) |
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138 | (1) |
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9.4 The Role of Big Data in Mortality Rates |
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139 | (1) |
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9.5 Purchasing Life Insurance in a Volatile Economy |
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140 | (1) |
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9.6 How Life Insurers Can Engage with the Young |
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141 | (1) |
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9.7 Life and Pensions for the Older Demographic |
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142 | (1) |
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9.8 Life and Pension Benefits in the Digital Era |
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143 | (2) |
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9.9 Life Insurance and Bancassurers |
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145 | (4) |
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147 | (2) |
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Chapter 10 The Importance of Location |
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149 | (18) |
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149 | (6) |
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10.1.1 The New Role of the Geo-Location Expert |
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149 | (1) |
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10.1.2 Sharing Location Information |
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150 | (1) |
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150 | (1) |
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10.1.4 Location Analytics in Fraud Investigation |
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151 | (1) |
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10.1.5 Location Analytics in Terrorism Risk |
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152 | (1) |
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10.1.6 Location Analytics and Flooding |
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152 | (2) |
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10.1.7 Location Analytics, Cargo and Theft |
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154 | (1) |
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10.2 Telematics and User-Based Insurance (`UBI') |
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155 | (12) |
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10.2.1 History of Telematics |
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155 | (2) |
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10.2.2 Telematics in Fraud Detection |
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157 | (1) |
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10.2.3 What is the Impact on Motor Insurers? |
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157 | (1) |
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10.2.4 Telematics and Vehicle Dashboard Design |
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158 | (1) |
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10.2.5 Telematics and Regulation |
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159 | (1) |
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10.2.6 Telematics -- More Than Technology |
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160 | (1) |
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10.2.7 User-Based Insurance in Other Areas |
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161 | (1) |
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10.2.8 Telematics in Commercial Insurances |
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162 | (2) |
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164 | (3) |
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Chapter 11 Analytics and Insurance People |
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167 | (18) |
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167 | (6) |
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11.1.1 The Need for New Competences |
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168 | (1) |
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11.1.2 Essential Qualities and Capabilities |
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169 | (4) |
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11.2 Talent, Employment and the Future of Insurance |
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173 | (1) |
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11.2.1 Talent Analytics and the Challenge for Human Resources |
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173 | (1) |
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11.3 Learning and Knowledge Transfer |
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174 | (4) |
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175 | (1) |
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11.3.2 Formal Qualifications and Structured Learning |
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175 | (1) |
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11.3.3 Face-to-Face Training |
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176 | (1) |
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11.3.4 Social Media and Technology |
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177 | (1) |
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11.4 Leadership and Insurance Analytics |
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178 | (7) |
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11.4.1 Knowledge and Power |
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179 | (1) |
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11.4.2 Leadership and Influence |
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179 | (2) |
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11.4.3 Analytics and the Impact on Employees |
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181 | (1) |
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11.4.4 Understanding Employee Resistance |
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182 | (2) |
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184 | (1) |
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Chapter 12 Implementation |
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185 | (26) |
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12.1 Culture and Organization |
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188 | (5) |
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12.1.1 Communication and Evangelism |
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192 | (1) |
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12.1.2 Stakeholders' Vision of the Future |
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193 | (1) |
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193 | (9) |
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12.2.1 Program Sponsorship |
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194 | (1) |
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12.2.2 Building a Project Program |
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195 | (2) |
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12.2.3 Stakeholder Management |
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197 | (1) |
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12.2.4 Recognizing Analytics as a Tool of Empowerment |
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198 | (1) |
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12.2.5 Creation of Open and Trusting Relationships |
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199 | (1) |
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12.2.6 Developing a Roadmap |
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200 | (2) |
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12.2.7 Implementation Flowcharts |
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202 | (1) |
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202 | (5) |
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12.3.1 Master Data Management |
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203 | (1) |
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203 | (1) |
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204 | (1) |
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12.3.4 Data Standardization |
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204 | (1) |
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12.3.5 Storing and Managing Data |
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205 | (2) |
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207 | (1) |
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12.4 Tooling and Skillsets |
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207 | (4) |
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12.4.1 Certification and Qualifications |
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208 | (1) |
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208 | (1) |
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209 | (2) |
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Chapter 13 Visions of the Future? |
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211 | (16) |
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13.1 Auto 2025 21113.2 The Digital Home in 2025 -- `Property Telematics' |
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214 | (4) |
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13.3 Commercial Insurance -- Analytically Transformed |
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218 | (2) |
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13.4 Specialist Risks and Deeper Insight |
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220 | (1) |
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13.5 2025: Transformation of the Life and Pensions Industry |
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221 | (2) |
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13.6 Outsourcing and the Move Away from Non-Core Activities |
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223 | (1) |
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13.7 The Rise of the Super Supplier |
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224 | (3) |
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225 | (2) |
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Chapter 14 Conclusions and Reflections |
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227 | (6) |
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14.1 The Breadth of the Challenge |
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229 | (1) |
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230 | (3) |
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231 | (2) |
Appendix A Recommended Reading |
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233 | (2) |
Appendix B Data Summary of Expectancy of Reaching 100 |
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235 | (4) |
Appendix C Implementation Flowcharts |
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239 | (35) |
Appendix D Suggested Insurance Websites |
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265 | (2) |
Appendix E Professional Insurance Organizations |
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267 | (1) |
Index |
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268 | |