Whitepaper Teaser #1: Foundations of Insurance BI for the New Normal
~ by Tom Chesbrough
To officially launch the Cloverleaf Analytics blog we are providing a few posts that will give a glimpse about the subject of our latest whitepaper that may be helpful for insurers as they begin to plan for 2022. The first two sections of the whitepaper are a brief history lesson into how the insurance industry got to where we are today in our collective perspective towards emerging technologies, especially analytics.
In addition to giving our viewpoint from decades in the industry including being on the carrier and technology vendor side, in these whitepaper sections, we review the perspectives of Willis Towers Watson and KPMG in the last few years about the importance and the future of insurance as it relates to scaling analytics capabilities.
If you are not convinced of the importance of insurance analytics in the past year, just look at the various projections about the impact of Hurricane Ida. In this NBC News article about the impact of Hurricane Ida, there is an interesting quote, “Insurance companies use finely calibrated models for risk evaluation, honed over decades of disaster research. Climate change is throwing a wrench into them”. We would argue that insurers’ models have not even begun to understand the decades of disaster data along with future risks. Another vendor, CoreLogic a global property information, analytics and data-enabled solutions provider estimates $27 Billion to $40 Billion in Insured and Uninsured Losses from Hurricane Ida Wind, Storm Surge and Inland Flooding.
As we saw with other major hurricanes it is hard for an industry expert or technology vendor to predict the scale of impact on a macro level. Think about the small and mid-sized insurers across the path of Hurricane Ida, where do they begin to pick up the pieces to try to serve their customers, stimulate growth, and improve profitability?
Besides new paperless claims processes which some insurers have shifted to, data will be increasingly important in being lean and efficient. It is likely smaller insurers impacted by the hurricane were just learning to walk again after some relief from the pandemic, but we are in a season where multiple challenging factors are at play. If you have 10-15 minutes, take a chance and read the paper, and reach out to us with any questions on how to prepare your 2022 insurance data analytics strategy.
If you would like to download the full whitepaper you can visit our Home page to do so.
About Thomas Chesbrough
Thomas Chesbrough is Executive Vice President for Cloverleaf Analytics. He is a 35+-year insurance industry veteran that has served in the role of CIO for insurance carriers, has implemented information management systems for several insurance organizations, and managed multi-million-dollar development projects. As an insurance and technology pioneer of model office processing, Mr. Chesbrough has been a consistent influencer in how carrier policy systems and services evolve to create more effective workflows and improve customer satisfaction. Throughout his career, he has been entrusted with creating new systems and processes along with managing all phases of many complete lifecycle system development engagements.