Professional Documents
Culture Documents
“Pat’s vast experience, knowledge and insights come to life in this book, a must
read for all insurers.”
—Deb Smallwood, Founder, Strategy Meets Action
“Finally, Pat has provided a data analytics roadmap for insurance industry
decision makers—not just research, but applied research to our industry.”
—John A. Cherba, Past President, Society of Insurance Research
“Pat Saporito is that rare individual who understands the business end of insur-
ance and can then match business needs with the supporting technology. She
cuts right through the jargon with specific insights about insurance business
needs, the data at the heart of our business, and applying analytics for optimal
outcomes. Essential reading for anyone who needs to leverage data to drive
business results.
“Pat worked closely with me as an advisor to the Institutes’ Associate in Infor-
mation Technology (AIT) program and also with the Insurance Data Manage-
ment Association (IDMA). Anyone studying analytics or insurance data (such
as the AIDM or CIDM from IDMA) will find this to be valuable supplemental
reading and a treasured reference.”
—Martin J. Frappolli, CPCU, FIDM, Senior Director of
Knowledge Resources, The Institutes (Institute for Chartered Property
Casualty Underwriters and Insurance Institute of America)
“Pat’s experience, knowledge, and know-how make her one of the few insur-
ance data professionals who can provide practical and reasonable advice and
insight on data uses and needs to carriers and insurance organizations.”
—Bill Jenkins, Managing Partner, Agile Insurance Analytics and former CIO,
Penn National Insurance
“As we move into a time with big data and cognitive computing, we are very
fortunate as an industry to have thought leadership that brings front and cen-
ter—as Pat has discussed in her book—topics that we must incorporate and
look to as points of reference and most importantly, lessons learned. Great
reference materials and perspectives!”
—Cindy Maike, Associate Partner, Insurance, Global Business Services, IBM
“Pat Saporito is acknowledged by all who know her as the consummate indus-
try thought leader. Given her range of experience from the business to IT and
analytics, she is a tireless evangelist for communication among all the par-
ties that make our industry tick. I am excited about her using her passion for
analytics to empower the business users and their technology partners.”
—Beth Grossman, Chief Learning Officer, ACORD
“Pat Saporito is both an insurance industry analytics thought leader and a prag-
matist. She uses her extensive industry experience to help insurers understand
key use cases and then makes them come to life using actual industry case
studies.”
—Dennis A. Steckler, Partner, Global Insurance Solutions,
Return on Intelligence, Inc.
“I have had the pleasure to work with Pat on a number of occasions to talk with
clients about the business value of analytics. Pat knows this better than anyone
I know. In her book, she connects the dots between business challenges and
analytics capabilities in the insurance industry and provides a roadmap on how
to optimize analytics in practice.”
—Dwight McNeill, Professor and Author of
A Framework for Applying Analytics in Healthcare:
What Can Be Learned from the Best Practices in
Retail, Banking, Politics, and Sports.
Patricia L. Saporito
Associate Publisher: Amy Neidlinger
Executive Editor: Jeanne Glasser Levine
Operations Specialist: Jodi Kemper
Cover Designer: Alan Clements
Managing Editor: Kristy Hart
Project Editor: Elaine Wiley
Copy Editor: Apostrophe Editing Services
Proofreader: The Wordsmithery LLC
Indexer: Lisa Stumpf
Senior Compositor: Gloria Schurick
Manufacturing Buyer: Dan Uhrig
© 2015 by Patricia L. Saporito
Upper Saddle River, New Jersey 07458
For information about buying this title in bulk quantities, or for special sales
opportunities (which may include electronic versions; custom cover designs; and con-
tent particular to your business, training goals, marketing focus, or branding
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Company and product names mentioned herein are the trademarks or registered
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All rights reserved. No part of this book may be reproduced, in any form or by any
means, without permission in writing from the publisher.
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Library of Congress Control Number: 2014937548
Contents
Preface...................................................................x
viii Contents
Chapter 9 Analytics Skills and Culture ............................103
Analytic Skills and Analytics Value Chain .....................104
Analytic Talent Management..........................................106
Culture and Adoption ......................................................107
Summary ..........................................................................110
Key Terms.........................................................................111
Additional Resources/Reading........................................111
Contents ix
Appendix C Analytics Blogs and Videos .............................163
Decision Factor ................................................................163
BI and Your Success, a YouTube Playlist .......................164
C1: Designing the Intelligent Enterprise ........................165
C2: Data Discovery: A Key Tool for
Big Data Insights ............................................................167
C3: Business Intelligence Strategy:
BICCs Take Center Stage...Again! .................................170
C4: Business Intelligence Strategy:
BICC, A Key Element of Your BI Program...................172
C5: Your BICC Is the Glue That Holds Business and
Technology Together: Skill, Roles,
and Guerilla Tactics for Promotion ..............................175
Index .................................................................179
x Contents
About the Author
I have spent more than 20 years working with business users and IT staff
using information and technology and have seen both raving successes
and raging failures. I have been involved in building both transactional
systems as well as analytic applications. Analytics is a field that I am pas-
sionate about because I have seen first-hand the impacts that effective
analytics can have on the insurance industry and more importantly on
our customers. I wrote this book to share my experiences and provide an
understanding of analytic capabilities and key considerations in using
analytics and building analytic applications for the insurance industry.
I have been a business analyst, a systems owner, a technology consul-
tant, and a management consultant. Failures nearly always result from
a lack of communication between business and IT due to differences in
expectations and experience. I have seen brilliantly designed data ware-
houses that were never used by the business. In other words, if you build
it they will not come unless it actually meets their needs.
The primary audience for this book is business users; I have kept techni-
cal jargon to a minimum and have used common terms that business
people will most likely encounter in working with their IT partners. I
have purposely omitted references to many important technological
functions performed in administration, operations, and architecture,
which fall under the chief information officer (CIO) or chief technol-
ogy officer (CTO). If you are a technical person, I recommend that you
read this book from the perspective of the business user; this view can
help you improve your alignment and better understand the business
needs, especially in the use cases and case studies in Chapter 10, “Use
Cases and Case Studies.” You should also find the section on business
discovery useful in Chapter 11, “Future of Insurance Analytics,” because
it is critical to extracting these needs.
I began my insurance career as a claims adjuster where I developed
interviewing skills that have served me well as both a business analyst
and management consultant, and more relevantly in analytics for busi-
ness discovery and value analysis. As I advanced in my claims career,
I assumed responsibility for field operations and also became the owner
of record for the claims administration systems. I moved into IT where
I became a business analyst and then a business systems architect and
later into a research and development role evaluating technologies for
business innovation and new product development. I had my own
market research and information management consulting business for
6 years. I have been a technology analyst; I led an insurance industry
research service. I then joined the vendor community where I ran a
team of industry consultants for the insurance, healthcare, and phar-
maceutical industries for a data warehousing vendor and conducted
many data warehousing and analytic business discoveries. At my cur-
rent employer, I have held multiple roles, including analytic insurance
solutions management and management consulting. I have worked not
only with insurance and healthcare, but also with many other industries
including airlines, banking, consumer products, manufacturing, and
utilities. In my role in an Analytics Center of Excellence I meet with
customers to help them evaluate and advance their analytics maturity
using leading practices. I have tried to incorporate experiences and les-
sons that I have learned along the way into this book.
I have benefited from being mentored and befriended during my career
by too many people to name, but I would like to recognize the follow-
ing and offer apologies to any I have mindlessly omitted: Jim Anasta-
sio, Sandra Ballew, Michael Bernaski, Russ Bingham, Peter Bogdon,
Steve Boley, Lamont Boyd, Bill Burns, Art Cadorine, Fran Chemaly, Jack
Cherba, Steve Collesano, Chris Christy, Reilly Cobb, Judy DeMouth,
Sue Koral, Diana Lee, Ken Levey, Lee McDonald, Cindy Maike, David
Moorhead, Anthony O’Donnell, Joe Peloso, Roland Perkins, Peri
Pieroni, Shannon Platz, Rick Porter, Barry Rabkin, Bill Raichle, Imran
Siddiqi, Piyush Singh, Deb Smallwood, Pat Speer, Jay Spence, Maureen
Strazdon, Dale Strobel, Ara Tremblay, David Van den Eynde, and Ray
Zolonowski. Thank you all for your knowledge, support, and friendship.
I’d also like to thank numerous people who reviewed and provided input
for this book including Christian Blumhoff, Louis Bode, Ken Demma,
Bill Jenkins, Shane McCullough, Jeri Ostling, Greta Roberts, Dennis
Steckler, Nate Root, and Tracy Spadola.
Preface xiii
I’d like to extend a special thanks to Dwight McNeill for encouraging
me to write this book and introducing me to my editor, Jeanne Levine,
at Pearson.
I hope in some small way this book provides payback and inspiration
to others.
xiv Preface
1
Analytics in Insurance Overview
I
nsurance is an industry that runs on data. Regardless of the indus-
try segment—Property and Casualty, Life, or Health—insurers
provide a service or financial product versus a physical product
to policyholders, and most often a promise to pay to or to indemnify
on behalf of a policyholder or to invest on behalf of. From the initial
marketing and customer insurance shopping and buying experience,
through to a claim payment or investment payout, the entire insurance
value chain, the end-to-end link business processes, are data driven.
Data is literally the life blood of the insurance industry and analytics
drive overall industry business performance through increased revenue
or decreased expenses. It relies on data and analysis to improve finan-
cial performance and services to shareholders and policyholders.
Analytics is the discovery and communication of meaningful patterns
in data. Business intelligence (BI) strictly speaking is a subset of analyt-
ics. BI is generally understood to be more narrowly focused on reporting
and data visualization technologies such as dashboards. Another area of
analytics is predictive analytics, which includes data mining, text min-
ing, and predictive modeling. Advanced visualization is yet another
area of analytics which includes maps, three-dimensional graphics and
more sophisticated visual representations beyond tables and simple
graphics such as those found in Microsoft Excel. BI and analytics are
used interchangeably through this book from a practical perspective.
Analytics improve business processes, decision making, and overall
business performance and profitability through insights gleaned and
actions taken based on these insights. Analytics rely on the simultane-
ous application of statistics, computer programming, and operations
1
research to quantify performance. Analytics often use data visualization
to communicate insights.
The overall analytics process takes raw data from multiple operational
systems, transforms that data so that it is “normalized,” (or in the same
format regardless of its source), often augments it with external or third-
party data, and turns it into information. It then enables analysis and
produces insights or observations from the information and, lastly,
guides decisions or actions based on the insights made.
External Data
It’s hard to imagine the industry running without analytics as analytics
have been so hard-coded into the industry DNA in marketing, under-
writing, pricing, and claims with a wealth of data available at the micro
or tactical operational level. Yet at the macro or strategic level, when
deciding on new products to offer or markets to enter, insurers have
limited and sometimes not any internal data. In these cases, insurers
can turn to external data from third parties such as state insurance
The following descriptions provide more detail on the above Use Cases:
■ Marketing has used psychographic data to augment existing cus-
tomer data or as proxies for customer data in target marketing.
Profiling characteristics of existing customers, it looks for similar
traits in prospects.
■ Product managers often review competitor rate filings to com-
pare products and product pricing, as well as target markets.
■ Claims recovery analysts have used warranty data and product
recall data to augment claims and underwriting data for claims
involving defective products. Two examples are sport utility
vehicle rollovers involving faulty tires and kitchen fires that origi-
nated in dishwashers or stoves.
Market/Channel
Producer MARKETING/SALES
Market Campaign
Acquisition
Marketing
Retention
Policy
Line of Business Product
UNDERWRITING
Policyholder Class of Business Development
Coverage
Application Limits
Bond Premium Written
Quote Deductible
New Business Marine Direct
Rate
Renewals Casualty
Charge
Endorsements Reinsurance Inforce
Cancellation Property
Reinstatement
Direct Bill Reinsurance Earned Premium
Accounts Assumed
Claimant Statement Pay IBNR
CLAIMS Receivable
Account Current Ceded
New Reported
Paid Loss Commissions Statutory/
Reopened Losses
Paid LAE Direct Statistical
Payment
Case Reserves Assumed
Closed
Accounts Ceded
Payable Company
Vendor ADMINISTRATION Profit Center
General Cost Center
Payroll Ledger Branch
Rent Expenses Department
Travel Employee
INVESTMENT Broker/Dealer
Accounts Cost and
Broker/ Budget
Dealer Investments
Reactive
Proactive
Process • None • Ask others for • Create own • BICC • Analytic Mentors
analytic reports reports • Business • Mature BICC
• Analysis vs. participates as • Analytic
Reporting Business Communities of
Analyst, Data Practice
Steward
Technology • Excel • Standard Rtpg • Ad Hoc Rptg • Visualization • Predictive
• Limited Ad Hoc • Dashboards • Data • Text Mining
Rptg Exploration • Sentiment
Analysis
Data • Data Silos • Spreadmarts • Data Marts • Integrated • Embedded
• Poor Data • Data Quality • Data Dictionary Data Views Analytics
Quality Awareness • Data • Data as strategic
Governance corporate asset
These areas will be explored in depth with use cases and example case
studies in Chapter 10, “Use Cases and Case Studies.” Figure 1-3 shows
an overview of commonly used analytics by business process.
Marketing Analytics
• Lead Generation
• Mkt. Research
Investment Analysis • Business Sales Analytics
• Channels
Development
• Sales Mgmt.
• Campaign Mgmt.
• Asset and • Field Development
• Advertising and
Capital Mgmt. • Productivity
Promotions
• Compensation
Marketing • Training
• Planning and
• New Business
Financial Budgeting
Processing Customer Service
• Profitability Mgmt. Investments Sales
Analytics • Renewals Analytics
• Performance Mgmt.
• Payments
• Financial Rpting.
Customer • Complaints
• Compliance Finance
Service • Inquiries
• Reinsurance
Claims Analytics
Challenges
Yet as much as analytics are needed, analytic adoption often falls short
because insurance stakeholders face a myriad of challenges using
analytics.
First and foremost, insurance stakeholders often lack data access to
complete, trusted, and understandable data. Insurers should strive not
just for quality, but for trusted data that is well documented, that can
be used for its intended purpose, and where any “nuances” in the data
are understood. Data can also be augmented; for example, structured
data can be augmented with unstructured data such as text data from
customer surveys or customer sentiment data from social media. A solid
data governance process can ensure the documentation of existing data
and define new data needed. Often the best “home” for data governance
in an insurance company is in actuarial or finance departments because
Traditional
Accounting and Planning and
Driver Based Planning
Integrated Planning Predictive Planning
Finance and Budgeting
Budgeting
Poor Quality, Siloed, Data Assembled Across Consistent Enterprise View Atomic Detail Data
Data Inaccessible Data Product Lines/Historical Knowledge/Data Mining Wisdom/Predictive
Summary
Learning Objectives
Test your basic knowledge of the main points in this chapter by answer-
ing the following questions:
■ Name major insurance business processes and key analytics used
by these processes.
■ Review how data originates and flows across and outside the
organization.
■ Apply the Insurance Analytics Evolution Framework to measure
maturity.
Key Terms
Analytic maturity refers to the increasing sophistication in the use of
analytics and involves four key dimensions of analytic users, analytic
processes, analytic technologies, and data.
Business Intelligence Competency Center (or Center of Excellence) is a
corporate function that defines and executes a strategic business intel-
ligence program through BI Governance committees.
Data governance is a corporate process that ensures data quality and
data understandability. It involves a Data Governance council and
includes data stewards from various business areas who participate in
this process.
Operational analytics are analytics used within a transactional system
such as claims management; these would include a list of new claims
created, a list of claims open more than 30 days, and so on.
Predictive analytics are analytics that use historical data to forecast
future results. These include data mining, text mining, predictive mod-
els, and so on.
Additional Resources/Reading
“The Data-Driven Organization.” Marcia W. Blenko, Michael C.
Mankins, Paul Rogers. Harvard Business Review. June 2010.
179
analytics skills, BICCs (BI BICC leader, 176, 98
Competency Centers), 175 BICC support leader, BICCs (BI
architecture, 15 Competency Centers), 176
asset efficiency, Insurance BICCs (BI Competency Centers),
Analytics Value Framework, 52 1, 16, 89, 170-171
Association for Cooperative BI Maturity Model, 170
Research & Development business intelligence strategy,
(ACORD), 67-70 172-174
ASUG (Americas SAP User business needs, 92
Group), 51 distributed BICC, 97
auditing, analytics, 144-146 establishing, 100
automobiles, SUV rollovers and executive sponsorship and key
faulty tires, 127 roles, 16-17
information structure and tech-
nologies, 93
B metrics, 94-95
Balanced Score Card. See BSC objectives, 90
(Balanced Score Card) organization and governance,
BI (Business Intelligence), 47 90-91
adoption, 77 organization structures, 97
analytic tools, guide matrix, 82 performance opportunities and
benchmarks for IT, 55-56
performance opportunities and
benchmarks for IT, 54-55 program governance, 94
BICCs (BI Competency roles, 176-177
Centers), 55-56 BICC leader, 98
value-based approach, 56-57 business analysts, 99
self-service, 91, 167 chief data stewards, 99
standardization, 86-87 communication analysts, 99
TCO (total cost of ownership), CSO (chief strategy officer), 98
86-87 data stewards, 99
BI (Business Intelligence) strate- KPI analysts, 99
gies, 144 Skills, 175
BI and Your Success, 164 tips for successful projects,
177-178
BI Competency Centers. See BICCs
(BI Competency Centers) training, 96
user support, 96
BI Maturity Model, 170
value, 92-93
BI Performance Analytics program, virtual BICC, 97
54-55
Big Data, 165, 45
BI roadmaps, 94
embracing, 143
BI Strategy Framework, 13-16, 48,
BPM (Business Performance
62, 90
Management), 35
BICC communication leader, 177
BSC (Balanced Score Card), 36-37
180 Index
building versus buying, data C
models, information taxonomies,
67-70 C N A Insurance, 130
business analysts, BICCs (BI CAO (chief analytics officer), 18-19
Competency Centers), 99 capability model, ACORD
business applications, data (Association for Cooperative
discovery tools, 168 Research & Development), 68
business challenges, analytics, case studies
46-48 analytics in sales, 107
business discovery, 146-147 C N A Insurance, 130
business expertise, 105 creating a 360-degree producer
business glossary, ACORD view with external data, 121
(Association for Cooperative fraud, 127
Research & Development), 68 life and annuity insurer
business intelligence. See BI distribution performance
(business intelligence) management, 121
Penn National, 117
business intelligence strategy,
BICCs (BI Competency Centers), Progressive Insurance, 117
172-174 Progressive Insurance sets the
standard for P&C personal lines
business needs, 23-24
segmentation, 117
Analytics Actionability Frame-
SUV rollovers and faulty tires,
work, underwriting, 26-27
127
BI Strategy Framework, 14
telematics and usage-based
BICCs (BI Competency insurance, 123
Centers), 92
underwriting expense
business discovery, 146 reduction, 123
Dimensional Analysis, UnitedHealth Group’s
underwriting, 30-32 “Numbers” Advertising
discovery interviews, Campaign, 107
underwriting, 25 UnitedHealth Group, network
interviews, 25 management, 135
use cases, underwriting, 28-30 Zurich North American, 117
business performance, metrics. catastrophe exposure analysis, 132
See metrics
CDC (Centers for Disease Control
Business Performance and Prevention), 134
Management (BPM), 35
CDO (chief data officer), 18-19
business skills, BICCs (BI
CFO (chief financial officer), 19
Competency Centers), 175
challenges to, analytics, 7-9
chief analytics officers (CAO),
18-19
chief data officer (CDO), 18-19
chief data steward, BICCs (BI
Competency Centers), 176
Index 181
chief data stewards, BICCs (BI customer relationship management
Competency Centers), 99 (CRM), 117
chief financial officer (CFO), 19 customer service, leveraging,
chief science officer (CSO), 18-19 125-126
claim fraud analysis, 127
claims, 126-127
claims actionability
D
framework, 156 D&B (Dun & Bradstreet), 121
claims analytics, 6 dashboards, 38-39, 79-80
claims dimensionality data
framework, 157 Big Data, embracing, 143
Claims Performance external data, 2-4
Management, 126 insurance industry data flow, 4
claims recovery analysts, 3, 127 psychographic data, 3
communication analysts, BICCs data access, lack of, 7
(BI Competency Centers), 99 data dictionaries, 72
component model, ACORD data discovery, 167-169
(Association for Cooperative data discovery and visualization,
Research & Development), 69 analytic tools, 80-81
computerized patient order entry data discovery tools, business
(CPOE), 123 applications, 168
Corporate Performance data exploration, 104
Management (CPM), 35 data extraction, 104
Cost Accounting, 129 data governance, 70-71
CPM (Corporate Performance data integration specialists, 72
Management), 35, 129
data management roles, 71-72
CPOE (computerized patient order
data management tools, 72-73
entry), 123
data mining algorithms, 82
credit scoring, 123
life insurance, 136 data modelers, 71
CRM (customer relationship data models
management), 117 ACORD (Association for
Cooperative Research &
CSO (chief science officer), 18-19
Development), 68
CSO (chief strategy officer), BICCs information taxonomies, 66-67
(BI Competency Centers), 98
building versus buying, 67-70
culture insurance industry, 70
analytic skills, 107-110
data preparation, 104
analytics, 142-143
data quality specialists, 72
customer engagement, 46
data stewards, 71-72, 93
BICCs (BI Competency
Centers), 99
182 Index
data understandability, 62 Enterprise Reference
data visualization, 104 Architecture, 68
DBAs (database enterprise risk analytics, 6
administrators), 71 enterprise risk management
Decision Factor, 163 (ERM), 131-133
decisioning, 105 EPM (Enterprise Performance
Design Thinking, 165 Management), 35, 129
designing, intelligent enterprise, ERM (enterprise risk
165-166 management), 131-133
Dimensional Analysis, business Excel, 78
needs, underwriting, 30-32 executive interviews, 25
dimensionality framework executive sponsorship, BICCs (BI
template, 161 Competency Centers), 16-17
discovery interviews, 25 extended business reporting
business needs, underwriting, 25 language. See XBRL (extended
disease and wellness management, business reporting language)
133-134 external data, 2-4, 145
distributed BICC, 97 case studies, 121
DRM (distribution relationship external reporting, finance,
management), 121 129-130
Dun & Bradstreet (D&B), 121 external use of analytics, 145
E F
education, BICCs (BI Competency Facebook, 117
Centers), 96 feasibility, business discovery, 147
electronic medial records finance, 129-130
(EMR), 123 external and internal reporting,
embedding analytics into business 129-130
processes, 142 Finance Data Warehouse, C N A
embracing Insurance, 130
Big Data, 143 finance management, 6
new technologies, 143 Fisher, Katie, 117
emerging C-level analytics roles, Fisher, Matt, 117
18-19 forecasting, 129
EMR (electronic medical fraud, case studies, 127
records), 123
enterprise information
management tools, 9 G
Enterprise Performance governance
Management (EPM), 35, 129 BI Strategy Framework, 14-15
data governance, 70-71
Index 183
governance BICCs (BI Competency innovating with analytics, 141-142
Centers), 90-91 inspections, underwriting, 123
governance program, BICCs (BI insurance analytics evolution, 9
Competency Centers), 94 Insurance Analytics Value Frame-
GPS (Geographic Positioning work, key drivers, 52-53
Systems), 9, 123 Insurance Data Management
GRC (governance, risk and Association (IDMA), 71
compliance), 35 insurance industry, data models, 70
insurance industry data flow, 4
H insurance industry metrics, 40-41
insurance performance
health insurance analytics, 133
management business
health insurance analytics objectives, 53
evolution, 150
insurance sales metric
framework, 39
I-J integrated delivery network
(IDN), 134
ICM (incentive compensation intelligent enterprise, designing,
management), 121 165-166
IDMA (Insurance Data internal reporting, finance, 129-130
Management Association), 71
interviews
IDN (integrated delivery
business needs, 25
network), 134
discovery interviews. See
IFRS (International Financial discovery interviews
Reporting Standards), 130
investing in analytics, 142
Incentive Compensation
Management (ICM), 121 IT skills, BICCs (BI Competency
Centers), 175
information architects, 71
information architecture, 61
information model, ACORD K
(Association for Cooperative key drivers, Insurance Analytics
Research & Development), 68 Value Framework, 52-53
information strategy, 62 key insurance analytics, 6
information strategy framework, knowledge management leader,
63-64 BICCs (BI Competency
information structure Centers), 176
BI Strategy Framework, 14 KPI analysts, BICCs (BI
BICCs (BI Competency Competency Centers), 99
Centers), 93 KPIs (Key Performance
information taxonomies, 64-66 Indicators), 26, 145
data models, 66-67 BICCs (BI Competency Centers),
building versus buying, 67-70 94-95
versus metrics, 36
184 Index
L metric visualization, 36-39
BSC (Balanced Score
lagging indicators, 36 Card), 36-37
leadership, 61 dashboards, 38-39
leading indicators, 36 metrics, 35, 145
leading practices, marketing, 117 BICCs (BI Competency Centers),
leveraging, customer service, 94-95
125-126 insurance industry metrics, 40-41
life and annuity insurer versus KPIs, 36
distribution performance maturity, 41
management, case studies, 121 metric visualization, 36-39
life insurance analytics, 135-136 types of, 35-36
LinkedIn, 117 Microsoft Excel, 78
loss exposure analysis, 127 MMO (market mix
loss reserving analytics, 127 optimization), 116
mobile strategies, 145
models
M analytics evolution models,
management cockpits. See 149-150
dashboards Metric Maturity Model, 41
market mix optimization talent management, 106
(MMO), 116 MRM (member relationship
marketing, 116-117 management), 117
external data, 3 MVRs (motor vehicle reports), 117
sales and distribution
management, 120-121
marketing analytics, 6 N
master data, 73 network management,
master data management UnitedHealth Group, 135
(MDM), 72
maturity
analytic maturity, 5, 145
O
analytics tools, 84 objectives
metrics, 41 BI Strategy Framework, 14
MDM (master data BICCs (BI Competency
management), 72 Centers), 90
medical managers, external data, 4 OMG (Object Management Group)
P&C Conceptual Data Model, 66
member relationship management
(MRM), 117 operating margins, Insurance
Analytics Value Framework, 52
metadata specialists, 71
operational analytics, 2
Metric Maturity Model, 41-42
operational BI, 47
Index 185
organization producer engagement, 46
BI Strategy Framework, 14-15 product management, 115
BICCs (BI Competency Centers), product management analytics, 6
90-91, 97 product managers, external data, 3
organization charts, BICCs (BI program governance, BICCs (BI
Competency Centers), 16-17 Competency Centers), 94
organizational effectiveness, Progressive Insurance, 117
Insurance Analytics Value
personal lines segmentation, 117
Framework, 52-53
UBI (usage-based insurance), 123
property and casualty insurance
P-Q analytics evolution, 149
property and casualty value chain,
P&C personal lines, 123
114-115
P4P (Pay for Performance), 134
provider and network
pay as you drive (PAYD), 123 management, 134-135
Pay for Performance (P4P), 134 provider relationship management
PAYD (pay as you drive), 123 (PRM), 135
peer alignment, 33 psychographic data, 3
Penn National, 117
performance, business
performance. See metrics R
performance opportunities and real-time analytics, 146
benchmarks for IT, BI (Business report creation, 104
Intelligence), 54-55 reporting, analytic tools, 81
BICCs (BI Competency Centers), retail market basked analysis,
55-56 Zurich North American, 117
value-based approach, 56-57
revenue growth, Insurance
platforms, analytic tools, 85 Analytics Value Framework, 52
policy/contract administration and roadmaps, BI (Business
service, 125 Intelligence), 94
population health roles
management, 134 BICCs (BI Competency Centers),
PPACA (U.S. Patient Protection 16-17, 176-177
and Affordable Care Act), 133 BICC leader, 98
predictive algorithms, analytic business analysts, 99
tools, 81-82 chief data stewards, 99
predictive analytics, 1 communication analysts, 99
price optimization, 115 CSO (chief strategy officer), 98
prioritization data stewards, 99
Dimensional Analysis, 31 KPI analysts, 99
underwriting, 32 data management roles, 71-72
PRM (provider relationship emerging C-level analytics roles,
management), 135 18-19
186 Index
S T
sales actionability framework, 152 tactical BI, 47
sales analytics, 6 talent management, analytic
sales and distribution management, skills, 106
120-121 taxonomies, 65
sales dimensionality information taxonomies. See
framework, 153 information taxonomies
sales management, external data, 4 TCO (total cost of ownership), BI
SAP, 51 (Business Intelligence), 86-87
scope, BICCs (BI Competency technologies, 9
Centers), 90 BICCs (BI Competency
segmentation, 105 Centers), 93
embracing new, 143
self-service BI (Business
Intelligence), 91 telematics, 123
self-service business intelligence, text mining, unstructured data
144, 167 analytics tools, 84-85
sentiment analysis, 145 thinking differently, 142
service actionability thinking outside the box, 141-142
framework, 158 tires, SUV rollovers and faulty
service dimensionality tires, 127
framework, 159 tools
service management analytics, 125 analytic tools. See analytic
skills tools, 78
analytics, 104-106 Excel, 78
BICCs (BI Competency suites versus stand-alone
Centers), 175 tools, 79
BI (Business Intelligence), TCO
social media, 117, 145
(total cost of ownership), 86-87
Society of Insurance Research, 143 data management tools, 72-73
standardization, BI (Business suites versus stand-alone tools,
Intelligence), 86-87 structured data analytics tool
strategic alignment, 33, 142 types, 79-82
strategic BI, 47 total cost of ownership. See TCO
structured data analytics tool (total cost of ownership)
types, 79-82 traditional analytics, 2
structured data tool types, user training, BICCs (BI Competency
categories and, 83-84 Centers), 96
suites versus stand-alone tools Tumblr, 117
analytics, 79 Twitter, 117
structured data analytics tool types of metrics, 35-36
types, 79-82
SUV rollovers and faulty tires, 127
system development and
administration, 105
Index 187
U property and casualty value
chain, 114-115
UBI (usage-based insurance), 123 provider and network
UM (utilization management), 134 management, 134-135
underwriting, 122-123 sales and distribution
business needs management, 120-121
Analytics Actionability underwriting, 122-123
Framework, 26-27 user categories, structured data tool
Dimensional Analysis, 30-32 types and, 83-84
discovery interviews, 25 user support, BICCs (BI Compe-
use cases, 28-30 tency Centers), 96
prioritization, 32 users of analytics, 7
underwriting actionability utilization management (UM), 134
framework, 154
underwriting analytics, 6
underwriting dimensionality V
framework, 4, 155 value
UnitedHealth Group’s “Numbers” BI Strategy Framework, 14
Advertising Campaign, 109 BICCs (BI Competency Centers),
UnitedHealth Group, network 92-93
management, 135 business discovery, 146-147
unstructured data analytics tools, value chains, 105
text mining, 84-85 Value Discovery, 49-50
usability of analytics, 7 value life cycle, 51
usage-based insurance (UBI), 123 value management, 57
use cases Value Optimization, 50-51
business needs, underwriting, Value Realization, 50
28-30
value-based approach, BI
claims, 126-127 performance opportunities and
disease and wellness benchmarks for IT, 56-57
management, 133-134
Value-Based Management, 49-51
ERM (enterprise risk
Value Discovery, 49-50
management), 131-133
value life cycle, 51
finance, 129-130
Value Optimization, 50-51
health insurance analytics, 133
Value Realization, 50
life insurance analytics, 135-136
marketing, 116-117 Variety, 45
policy/contract administration Velocity, 45
and service, 125 virtual BICC, 97
product management, 115 visualization tools, 9
Volume, 45
188 Index
X-Y
XBRL (extended business reporting
language), 65, 130
Z
Zurich North American, 117
Index 189