Transcript 1999 All-Employee Meeting

Business Intelligence Solutions for
the Insurance Industry
DAT – 13 Data Warehousing
Rasool Ahmed
Business Intelligence
Questions:
• BI - What is it?
What would I do with it?
Why do I need another system to do it?
• BI supplier selection evaluation criteria.
©2000 Thazar Solutions Corporation
Business Intelligence
•Executive Analysis
•Query
•Reporting
•Data Mining
Access
Data Warehouse
Judy Ann Brown
Female
July 20, 1945
Financial Consultant
Good Credit History
Income > 100,000
One Claim Filed
Closed Without Payment
Two Tickets 1999
One DUI
•Multi-Company
•Multi-Line
•Multi-Source
•Multi-Dept/Function
•Transaction Level
Load
Transform
Operational
Data Sources
•Claim
•Sales & Marketing
•Financial
•Underwriting
•Third Party Data
•Other Int. Systems
©2000 Thazar Solutions Corporation
Extract
Policy
Claim
MVR
External
J Brown
Female
July 20, 1945
Financial Consultant
Judy Brown
One Claim Filed
CWP
Brown, Judy Ann
Two Tickets 1999
One DUI
Judy Jackson
Good Credit History
Income > 100,000
BI - What would I do with it?
Data Modeling
“…predict with 82% accuracy those customers that
Will cancel their policies.”
“… The special Investigation Unit can now prioritize
and catch 66% more fraudulent claims per referral.”
•Pattern Recognition
•Predictive Modeling
•Risk Scoring
“Fraud with 85% accuracy”
Detailed Analyses
•Loss Triangles
•Risk Assessment
•New Business
•Exposure Evaluation
Exec / Mgt Profiling
•Interactive
•Intuitive
•Mgt Review
©2000 Thazar Solutions Corporation
What can do with it?
•Executive Browser
©2000 Thazar Solutions Corporation
©2000 Thazar Solutions Corporation
Why do I need another system to do it?
•
•
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Data organized for OLTP, not analysis
Inability to slice and dice – geared for management reports
Unintelligible coding structures; no meta data
Not a complete picture (multiple systems); can’t merge
Inability to augment data
87% of all insurance master files are non-relational
Inability to profile trends
©2000 Thazar Solutions Corporation
Insight
Business Intelligence
•Executive Analysis
•Query
•Reporting
•Data Mining
Insure Marts™
Access
•Corporate Detail
•Corporate Summary
•Line of Business
Aggregate
Insurance Warehouse™
•Policy
•Claim
•Rating
•Reinsurance
•And more
Data Sources
•Claim
•Sales & Marketing
•Financial
•Underwriting
•Third Party Data
•Other Int. Systems
©2000 Thazar Solutions Corporation
Load
Transform
solutions provided by Thazar
knowledge
& insight
gathered by
insurer
Extract
Information
source data
provided by
insurer
Business Intelligence
How Much?
199X
2000
$$
$3+ M
1/4% NWP
Time
> 3yrs
3 – 5 months
Function
Reports
©2000 Thazar Solutions Corporation
Profiling/Predictions
Business Intelligence
For Example…….:
Fraud Detection
Losses are 70% of NWP; 10-20% of Losses are Bad Faith
Identifying <4% of Bad Faith claims pays back cost of DWH
Retention
Poor
Average
Good
25%
35%
45% (after 4yrs)
|-----------------------------------
(2%) Loss Ratio
|----------------- (1 ½%) Loss Ratio
Increasing Retention by 1 ½% pays back cost of DWH (reduced losses only)
New Business
Costs of Sales can vary from 5% to 20% of NWP
Moving 5% of business to channel that is 5% more efficient pays back cost
©2000 Thazar Solutions Corporation
Why Companies are Doing
Business Intelligence
Better Quality
of Data
35%
Better Understanding
of the Business
20%
More Timely
Decisions
30%
Over 400% ROI in less than 3 years!
Meta
Group
Survey
of 300 Companies Implementing Warehouses
©2000 Thazar
Solutions
Corporation
Exploit New Market
Opportunities
15%
Why Companies are Doing
Business Intelligence
Revenue Growth / Expense Control
• Questions You Need Answered Now
• Questions You Have Not Thought About
• Acquisitions
©2000 Thazar Solutions Corporation
Personal Auto – Retention Analysis
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Policy Holder Characteristics
Loss Attributes
Policy Attributes
Distribution Analysis
Dimensions
©2000 Thazar Solutions Corporation
Homeowners – New Business Analysis
•
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Policy Level Analysis
Risk Characteristics Analysis
Home Feature Analysis
Time Views
©2000 Thazar Solutions Corporation
Engagement Overview
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©2000 Thazar Solutions Corporation
wk 1-2
wk 3-4
wk 5-7
wk 8-9
wk 10-11
wk 12
Plan / Organize
Data Analysis Workshop
ETL Development
Test & Balance
Load Warehouse & Marts
Go Live
Implementation Roles /
Responsibilities
BI Solutions Provider
• Project Manager
• Business Analyst*
• Data Analyst*
• Technical Analyst
* Insurance knowledge &
experience is critical
©2000 Thazar Solutions Corporation
Client
• Project Manager
• Business Analyst
• Data Analyst
Critical Success Factors...
Supplier
Executive Sponsorship & Vision
Functional Executive commitment
Information Systems Team involvement
BI Insurance Experience & Methodology
Pre-defined Models, Templates, Marts
& Executive / End User Browser
©2000 Thazar Solutions Corporation
Both
You
Critical Success Factors...
Supplier
Scope & definition study - phased Implementation
Expectations & Results understood
Business & I/S experts to implement
Training and skills transfer
Easily Supported & Maintained
Add additional departments, enhancements
& applications
©2000 Thazar Solutions Corporation
Both
You
Lessons Learned
Don’t:
• build “boil the whole ocean”
• oversell to end-users
• build something that can’t be maintained and extended
Do:
• start small “phased” - prioritization by LOB
• ensure data has integrity and is balanced
• define measurable objectives
• deliver “baseline” results early & continue to build
©2000 Thazar Solutions Corporation
Keep At It !!!
Rasool Ahmed
Thazar Solutions Corporation
[email protected]
816-760-5119