Analytics for Insurance: The Real Business of Big Data

Tony Boobier



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

Preface xi

Acknowledgements xiii

About the Author xv

CHAPTER 1 Introduction – The New ‘Real Business’ 1

CHAPTER 2 Analytics and the Office of Finance 25

CHAPTER 3 Managing Financial Risk across the Insurance Enterprise 37

CHAPTER 4 Underwriting 51

CHAPTER 5 Claims and the ‘Moment of Truth’ 61

CHAPTER 6 Analytics and Marketing 91

CHAPTER 7 Property Insurance 109

CHAPTER 8 Liability Insurance and Analytics 127

CHAPTER 9 Life and Pensions 135

CHAPTER 10 The Importance of Location 149

CHAPTER 11 Analytics and Insurance People 167

CHAPTER 12 Implementation 185

CHAPTER 13 Visions of the Future? 211

CHAPTER 14 Conclusions and Reflections 227

APPENDIX A Recommended Reading 233

APPENDIX B Data Summary of Expectancy of Reaching 100 235

APPENDIX C Implementation Flowcharts 239

APPENDIX D Suggested Insurance Websites 265

APPENDIX E Professional Insurance Organizations 267

Index 269