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Download 1999 All-Employee Meeting
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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? • • • • • • • 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 • • • • • Policy Holder Characteristics Loss Attributes Policy Attributes Distribution Analysis Dimensions ©2000 Thazar Solutions Corporation Homeowners – New Business Analysis • • • • Policy Level Analysis Risk Characteristics Analysis Home Feature Analysis Time Views ©2000 Thazar Solutions Corporation Engagement Overview • • • • • • ©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
