Using analytics to find growth opportunities
The beauty of insurance data is that there is so much that can be put to use. Policy holders, risks, underwriting processes, claims - you name it – insurance is a data business. Data allows us to know who is insured for what. It helps us understand if our business is profitable, if our pricing is risk adequate and it allows us to report coherently back to our management, regulators and shareholders. As a Swiss Re sigma publication on analytics points out: "Competitive advantage will go to those insurers able to use big data and analytics to identify early signals to emerging risks and opportunities, to gain insights into customer behaviour and to make operations more efficient." (Page 4, sigma under " Change and digital transformation")
Data has always been the DNA of insurance. The way we use data has evolved. What was once a tool to helps us record what has been done, is now a gateway to understand where it is possible to grow in the future.
Swiss Re is driving that evolution. We have systematically deployed our data analytics techniques for our clients to help them find and test growth opportunities in profitable new growth markets and lines of business.
One successful example is in closing the protection gap for property coverage against flooding. Globally, Swiss Re's tools have been deployed to combine our proprietary flood model rates with external economic data for population growth, home values, and GDP per capita. We then plug that data into our visual analytics and machine learning methods, and deliver customised visualisation tools that accurately identify which cities, neighbourhoods or even properties would offer the best focus for sales and marketing efforts.
These tools can unlock insights into risk levels, price competiveness and the potential volume of the market. And they can be used to present those insights in a form that is user friendly for your development teams, your management and your top decision-makers.
And that means you can action the data insights to realise your growth plans.