Total No.

Of Insurance
Undertakings in the US
Customer Retention Ratio
Life Insurance vs Other
Insurance
Top Revenue Generators
Top Profit Makers
Top Loss Makers
Market Share 2009-2010
5 Influence Factors
the financial market integration
the economic globalization
merger annexation
technical information and communication
technologies
electronic commerce and the Internet
Moving up the Enterprise
Value Chain Through
Insurance Analytics
  Legislative and regulatory compliance
requirements
 Strong competitive pressures encouraging
‘core’ outsourcing: Predictive analytics
Claims and profitability analysis
Persistency modelling and analysis
Mortality/morbidity modelling and analysis
Product profitability analysis
New product development – pricing, valuation
Commissions analysis
Actuarial / statutory reporting
Actuarial data
Information management
 The majority of high-value insurance
processes are complex, be
of Insurance Companies- Ernst &
Young predicts

Responding to the changing regulatory

environment:
Establishing capital and risk
management solutions post-crisis
 Improving customer relations and
increasing operational efficiencies
Reinventing products and distribution
to generate growth

Companies providing BA
Services
CSC’s Insurance Optics: is a suite of
software and consulting services for
enterprise business intelligence. The
portfolio of solutions is designed to help
insurers gain fast and accurate insight
from data to solve complex business
problems, react quickly to changing market
trends, improve financial exposures and
drive change. Insurance Optics solutions
use CSC’s deep domain expertise in life
insurance, annuities, pensions and
property and casualty/general insurance to
give you an enterprise view of your
business.
 The Accenture Business Intelligence Solution
for Insurance: The solution integrates fully
with industry-standard BI platforms and
contains three parts:
 Enterprise Metrics Management
 Reporting
 What-if analytics and scenario planning

IBM Business Analytics
Software
gain a complete and consistent view of all
key profitability drivers so that one can:
• Track and monitor sales, claims,
margins and operational performance.
• Analyze results and identify and predict
trends in channels, regions, products,
demographics and customer behavior.
• Dynamically adjust plans to achieve
profitable growth.
• Manage risk effectively.
Solutions for the Health Information/Health Insurance Industries
Key Performance Indicators
Insurance Sales


 Increase in profit per sales executive

% increase in training cost
Annual Salary
Incentives as % of salary
Number of sales targets achieved
% decrease in employee turnover
% of renewed policies to the number of
policies sold
% of policy lapses or missed payments
% decrease in customer complaints
Percentage of upgraded policies
Number of referrals generated from customers
Number of customer focused products
developed

Key Performance Indicators
Insurance Policy & Premium


 Average insurance policy size of policies closed

within measurement period
Percentage of overdue premium
Number of new insurance policies closed
within measurement period
Net Written Premium on policies
Percentage of policies that are renewed / not
renewed
Percentage of insurance policies that have
been rejected
% of forcasted premium income vs the actual
received premium income for the best / worst
insured
Policy Premium to Personnel Cost (salaries,
variable pay, benefits, training, etc.)
Premium revenue by Geography / Product

Key Performance Indicators
Insurance Claims


 Percentage of claims over Cap

% of fraudulent insurance claims / activities
claims to premiums ratio % (Loss Ratio
percentage)
Percentage of Claims Solvency
% increase in average claim payment per case
% decrease in expense payment per case
Legal Cost incurred as a % of total cost
% change in costs on claims processing
% of records properly documented
Average Claim settlement time
Average handling time of insurance claims
Average closure duration of insurance claims

Recent Developments
EGI Insurance Services, Inc.
(Cummings, GA) Selects iPartners’
Business Intelligence Solution: quickly
customized dashboard view and detailed
policy level data analysis.
Yodil, Inc., a provider of business intelligence
(BI), data analytics, and management
reporting services to the insurance
industry, was launched today. The new firm
comprises business assets acquired
separately from Advanced Systems Design
(ASD) of Morton, IL -- and from a veteran
insurance industry and agency consultant.
 Analytics firm SAS has posted its financial results for
2010, revealing a revenue increase of over five percent.
SAS earned $2.43 billion revenue in 2010, an increase
of 5.2 percent on 2009's revenue.
SAS's business analytics sector saw a revenue increase
of 26 percent, accounting for the majority of the
company's total revenue growth. The banking,
insurance and investment sectors were primary
customers of business analytics, employing it to deal
with global economic fears. This helped SAS to continue
growing throughout the recession.
 Nearly half of its revenue, 46 percent, was earned in the
Americas, while 42 percent was earned in the Europe,
Middle East and Africa region. The final 12 percent came
from the Asia Pacific market. Emerging markets in Asia,
Latin America and the Middle East contributed some of
the highest growth.


 implement a risk management strategy:
Ensure accurate information by integrating
disparate data and automatically applying
embedded data quality techniques.
Reduce the impact of risks by applying
advanced analytics that allow insurers to
anticipate enterprise risks and initiate risk
control measures to minimize losses.
Employ stress testing to determine the
potential effect of dramatic changes in market
circumstances.
Reduce implementation time and expenses
with a single, integrated solution.
Improve business decisions by allowing risk
analysts to access and communicate
information when they need it, in the format
and level of detail they require.
Future Areas of Application
 Business Analytics for Insurance Claims:
How insurers can reduce claims fraud and
lower loss expenses (Claims Analytics)
 Business Analytics for Insurance
Marketing: What insurers can do to increase
revenue and improve retention rates
(Customer Intelligence)
 Business Analytics for Insurance Risk:
Business Analytics for Insurance Risk (Risk
Management for Insurance)


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