big picture mutuality · the claims record is made available in real-time across all channels for...
TRANSCRIPT
BigPictureMutuality
ChairedbyAlanGoddard,CornishMutual
• DanielTischer,CentreforMutualandEmployee-OwnedBusiness,Oxford
• SteveBarry,ICMIF• RoyJubraj,Accenture
TECHNOLOGY AND INSURANCE – A
NATURAL MARRIAGE
12 OCTOBER 2015
Copyright © 2015 Accenture All Rights Reserved. Proprietary and Confidential
General Insurance Trends
Innovative insurers must balance digitalisation, customer centricity and legacy modernisation to compete effectively in an evolving market.
Accenture Research have identified the following key trends for P&C insurers over the medium term…
Internet of MeA personalised world
Distribution in a Mobile WorldA dynamic, accessible and continuous consumer interaction model
The Intelligent and Changing EnterpriseHuge data, smarter systems - better business
Outcome EconomyTraditional business models are under threat. Outcomes over Products
Future Products and PricingConsumption and composite propositions
Workforce ReimaginedCollaboration at the intersection of humans and machines
“Insurance is inherently about managing risk, and the key to surviving these challenges is flexibility and insight”
The Platform (R)evolutionDigital platforms are becoming the tools of choice
Global Insurance CEO
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The changing realities we can’t escape…
Customers are
empowered
Engagement is on their
terms
Platforms and devices change the playing field
There is a new face of competition
New Profit Pools
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Digital Has Disrupted Customers
In the last decade, consumer dynamics across sectors have deeply changed.
Compared to 10 years ago… Today…
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44% / 68%Informed and self-directed•Wants access to relevant content in real time
48% Social•Relies on “wisdom of crowds” (social media, blogs, …)
52% Online•Prefers to buy insurance online
64% Price-sensitive•Wants to be in control
72% Connected•Wants to interact with insurers in his digital environment
78% Willing to share•Will provide personal information in exchange for better, more personalised insurance cover
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…and transformed the industry
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The industry is being transformed by disruptive new technologies
Usage-based
insurance
TelematicsAggregator Connected Home Life Style
Insurance
Seamless omni-
channel experience
Big data & Analytics
Social media
Mobility
Remote sensorsAutomated
adviceConnected people & devices
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Different Customer, Different Intensity, Different Speed… Every Customer is a Digital Customer
Need to pivot to the multispeed customer organisation for all customer types.
Digital SavvyThey make digital technology part of all dimensions in their life. Mobile access is key.
TransitionalThey strive to leverage digital more broadly but may not always be able to do so.
TraditionalThey rely on traditional channels & interactions. Even then, they leave digital traces.
ExperimentalThey selectively engage in digital for utility value, discovering how the experience improves.
Higher Digital Customer Intensity
Increased Speed
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Yet Customers are being let down
Sector failing on customer experience (June 2015)
Report says insurance firms’ customer relationships are “bland and undistinguished”.
The insurance sector has been criticised for offering its clients a "bland and undistinguished" customer experience.
The review warned that companies in the insurance sector are failing to use customer experience to differentiate themselves and forcing customers to make decisions solely on price - a situation exacerbated by the aggregator sites.
Review, by MyCustomer.com, a customer relationship management expert
Findings in the review revealed that insurers are failing to engage consumers on digital channels, with just 20% responding to questions asked on Twitter and via email, and only 30% answering questions satisfactorily.
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Eight Trends Highlight Providers’ Struggle to Keep Pace
Globally, problems of the past and digital challenges of today are key hurdles.
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Missing out on customer growth
Push customers to the exit
Under-exploiting own channels
Sub-optimising digital service
Service still falling short
“Dis-Loyalty” Programs
Not winning back defectors
First contact resolution is consistently the top frustration over past 5 years
Impact of company websites decreased versus other channels.
Low digital adoption due to lack of right information (30%) or spam risk (22%)
Switching due to poor service is flat or slight decreasing very slowly
For 60%, key driver is access to best deals focused on ‘short-term’ loyalty
8 Unprepared to face disruptors Many established providers are slow to adapt to new business models
Intent to buy less from current companies grew (+40%) in same period.
Many companies miss this opportunity, as switch back drivers are not compelling.
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The Digital Consumer – What does this mean for you?
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Analytics & Insights Snapshot
Data / Insights – Proactive vs. Re-activeCustomer AnalyticsClaim Analytics
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Harnessing analytics to drive growth & profit
Leading organisations not only use data historically to evaluate best actions but also employ advanced analytics methods to predict and optimise future business outcomes to gain competitive advantage
Anal
ytic
al M
atur
ity
Optimisation
Predictive Modelling
Forecasting/ Extrapolation
Statistical Analysis
Alerts
Query/ Drill Down
Ad hoc reports
Standard Reports
“What’s the best that can happen?”
“What will happen next?”
“What if these trends continue?”
“Why is this happening?”
“What actions are needed?”
“What exactly is the problem?”
“How many, how often, where?”
“What happened?”
Business Value
Analytics-Enabled Decision Making
Predictive Insight to Outcome
Managing Information
Business Intelligence
§ Operational Reporting
§ Ad-hoc Query
§ Data Management
§ Data Visualisation
§ Dashboards
§ Data Warehousing
§ Optimised Decisioning
§ Big Data Exploitation
§ Predictive Modelling
§ Forecasting & Next Best Action
§ Behavioural Analysis
§ Advanced Data Segmentation
Reactive (looking back at
what has happened)
Proactive(looking
forwards at what will happen)
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Copyright © 2015 Accenture All Rights Reserved. Proprietary and Confidential
Our point of view Analytics early adopters have an opportunity to get ahead and stay ahead by focusing and investing in the right areas, and emulating analytics leaders, not their industry competitors
Copyright © 2015 Accenture All rights reserved.
Current state - primarily…
Product-centric models across functional areas
Leaping the capability the industry is pursuing
Batch execution of manually built models
Actuarial GLM Regressions
Data ‘Built for BI’
Big Data Lakes
Uplift Modelling
Voice Analytics
Claims Forecasting
Aggregator Quote Modelling
Real-time Rules
From…
To…Cross-industry leader
Customer-centric models
Real-time digital channel connectivity
Analytics Embedded in Every Decision
Data ‘Built for Analytics’
Continuous Test & Learn -Always on
Personalised Next Best Action
Industrialised
Machine Learning
The Analytics Leap-frog
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Embedding Analytics Into The Insurance Lifecycle
Stimulus
Single Customer View
First Moment of Truth
Customer Experience
Targeting models
Zero Moment of Truth
Price and Purchase
Brand and direct marketing
Apply data to controlled marketing experiments to
understand and attribute marketing activity and
understand the impact and interaction with the brand
Develop a unique data insight to build separate
quote and conversion uplift models – combining
customer insight with underwriting knowledge to
improve marketing efficiency and grow
sales
Identify customers during the sales process in real time, and respond with the right, tailored offer
Understand what enriched data tells you about the insurance risk beyond
the standard 10 u/w questions
Embed partner data and predictive / prescriptive
decision models to improve cross sales, retention and improve customer experience
Manage ThirdParties
Predictive Analytics through the Claims Lifecycle
Predict ClaimEvents
Know Your Supplier / Opponent
Apply data to power claims management processes
with automated predictive decisions to reduce
claims costs by up to 5%and manage fraud
proactively
Understand your customers and their preferences better to manage third parties
during claims to improve customer outcomes and
maximise value
Market better Price / quote better Manage claims better Build profit
Our experience and credentials enable analytics to add value to every decision along the insurance lifecycle
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Accenture Customer Analytical Record
Accenture’s Customer Analytical Record (CAR) is a virtual single view of the customer combining multiple disparate data sources and made available for rapid predictive modelling and real-time predictive / prescriptive applications
CAR made available to:
Historical Model BuildEnable analysts to recreate single views of the customer at any historical point to
enable rapid predictive / prescriptive model builds
Big Data NOSQL Store
HybridCloud In-House
Transactions / Events
Applications / Products
Web / mobile logs
Accounts
External Behavioural
Data
Real-time Decision ManagementThe Customer Record is made available
in real-time across all channels for customer-level decisions at every
customer touch-point
Real-time Prescriptive / Predictive Analytics
Prescriptive analytics / machine learning running at <0.3ms isolating the
Individual Marketing Effect
Customer Journey
ETL
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Accenture Claims Analytical Record
Accenture’s Claims Analytical Record (CAR) is a virtual single view of the claimant combining multiple disparate data sources and made available for rapid predictive modelling and real-time predictive / prescriptive applications
CAR made available to:
Historical Model BuildEnable analysts to recreate single views
of the claim at any historical point to enable rapid predictive / prescriptive
model builds
Big Data NOSQL Store
HybridCloud In-House
Demographics
Claims Notes
Fraud Status
Financials
Event History
External Behavioural
Data
Real-time Decision ManagementThe Claims Record is made available in
real-time across all channels for claims-level decisions throughout the
claims lifecycle
Real-time Prescriptive / Predictive Analytics
Prescriptive analytics / machine learning running at <0.3ms isolating the likelihood
of adverse claims outcomes
Claims Journey
ETL
CAR Facts & Figures
500+variables
0.3msresponse time
20+Insurance clients
13Years of development
2-4 Weekscustom development
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Copyright © 2015 Accenture All Rights Reserved. Proprietary and Confidential
Next Best Action for Claims
Post-FNOL Assignment
• Identifies claims that are more sensitive to the experience of the claims handler and enables predictive assignment post-FNOL
• Factors include:• Text mining of claims notes• FNOL detail capture• Age of claimant
FNOL Assessment Liability Triage SettlementNegotiate
Subrogation & Complaints Prediction
• Subrogation models can help identify recovery opportunities for both historic and current claims
• A combination text mining claims notes and predictive analytics can be used to identify those claims which are most likely to result in a complaint
Large Loss Prediction
• Although large losses contribute less than 2% of claims volume, machine learning can be used to identify claims earlier in the process that have a significant chance of becoming a large loss
• Preventative action can then be taken including re-assignment to an experienced operator and proactive claimant contact
Settlement Sensitivity
• Prescriptive analytics can be integrated with external data sources to evaluate price points and determine the optimal settlement method
• Price and timing are key components with some claimants accepting lower offers at certain points in the process and/or month
Cross-sell / Retention Messages
• Following a successful claims process, advanced analytics was used to test and learn the most valued treatment to apply to a satisfied customer including:
• Product cross-sell• Up-sell of any missing cover• Retention messages and offers
Powering a claims department‘s claims processes with automated predictive decisions is helping insurers identify opportunities to reduce claims losses by up to 5%
Straight Through Processing
• Prescriptive analytics can use integrated rules based decisioning to:
• optimise various processing points
• reducing handler effort; and• improve the customer
experience
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Know Your Supplier
…Improve supplier assignment by identifying those claims which are more likely to result in complaints if routed to particular repairers…
… Identify opportunities to reduce claims loss cost by leveraging nuanced insight into every supplier and comparable cost breakdowns …
The Claims Analytical Record can be rolled up to Supplier level to optimise which claims should be routed to which suppliers and help reduce claims loss cost and potential complaints
Supplier Analytical Record
Insight-to-Action-to-Outcome
… Use analysis to re-tier supplier network and feed a claimant level prescriptive model to optimise customer journey…
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What we’d like to talk about…
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1hr 45min
Copyright © 2015 Accenture All Rights Reserved. Proprietary and Confidential
How are Accenture Achieving This? The Insurance Labs
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Drivers• Changing Consumer
• Digital – Mobile, apps• Cloud, In memory
• Next Gen Applications• Data is the new currency
Demands• Radical Cost reduction• Flexibility• Pace & Agility• Certainty & reliability• Simplicity• Power & Capability to
differentiate• Insight
Duck Creek & Best of Breed Software
Content & Product accelerators
Available Now
Available Now
Available Now
Available Now
Many organisations
talk about digital
insurer… …we decided to build it
‘Hub’ for Alliance partners to integrate OOTB Best-of-Breed software solutions
Cloud• Cloud (Azure) Hosted,
rapid release and scalable {logo}
Investment• $87m globally in FY15• $4m in UK Insurance Labs
alone over 24 months
Deployment Factory• Agile labs environment
deployment factory• CRP approach for
delivery at scale
• Integrated, Omni Channel Online capabilities, Policy, Rating, Billing and Claims, CRM and Analytics, using best of breed assets and products
• Performance tuned, 20m quotes a day with sub second response times
• Configuration based assets built on a modern flexible architecture
Key Facts
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The Digital Insurer
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