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Insurance
Statistics and number crunching play an important role in the insurance industry. To keep the business in top shape, the insurance industry employs actuaries, the experts in statistics who calculate insurance risks and premiums. In fact, most insurance companies rely on their actuarial department to set pricing, evaluate profit, set reserves and develop new product lines.
Because actuaries provide input for every strategic decision made within insurance company, they rely on data as a foundation for making sound business decisions. The use of Business Intelligence (BI) may help the company to discover anomalies and patterns in data so they can modify their products and services to be as competitive as possible. It can also help these companies one step further; it could be viewed as an ¡¥information service bureau¡¦ to other departments or companies.
An ideal BI solution allows the company to provide a more efficient and accurate way for actuaries to access the information they need to analyze things such as adequacy of reserves, product pricing, new product rollout, and evaluating the effectiveness of various operational groups (claims, underwriting and so on).
Following key areas should be addressed :
- Heterogenous Datasources - to reduce data redundancy and manual processes from different platforms and databases.
- Quicker data retrieval - Large volume of data is very likely, too much data would always result in taking too long to get the data.
- Increased data flexibility - allow drill down/through to view detailed data so that problems can be looked into quickly.
Our BI solution has helped companies to create structures from different summary tables and with the front end to present the multidimensional data in triangle format and in other predefined reports. What used to take long time can be shortened significantly.
Once the actuaries have the view they want, they can identify unusual historical data (or exceptions), drill down to the database, to find out why there is a fluctuation. Being able to see the hierarchy in dimensions, so that data can be changed visually, could be another advantage. It enables insurance company to remove the exceptions (smooth the data) and save the triangle view. The saved view can then be used for forecasting, trending, and modeling without having an anomaly skew the entire results for the triangle.
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