Insurance Industry Trends in 2015 #1 Big Data and Analytics

What’s Hot in Insurance in 20151.Big Data and

Analytics2. Mobile

3. Cloud Computing

4. Collaboration

5. Telematics/IoT

Insurance Facts• 86% of insurance CEOs believe technological advances will

transform their business in the next 3-5 years (PwC 2014 CEO Survey)

• More than half of IT budgets are still spent on maintenance• Heavy investments in 2015 in data quality, optimization of

existing tools, data science, improved processes and governance

• Only a few executives are seriously considering incorporating IT into strategic planning and thinking

• Shift towards digital -> by 2018….– 1/3 of the insurance industry’s business is expected to occur

digitally• 20% of insurance business will be generated through internet • 11% via mobile channels

(World Insurance Report, 2014)

External Forces Impacting Insurers in 2015

Technologies evolving too rapidly

Increasing customers needs and expectations

Regulations

Natural catastrophes

Competitive pressures on pricing

Insurers Business DriversPlease rank in order the following business drivers facing your organization through 2020

2015 Global Insurance Outlook

Some figures…• 90% of insurance firms yet to

implement a company-wide big data strategy as they flounder in a ‘vicious cycle’

• 82% of household insurance providers think they have to capture and analyze big data to remain competitive

• 80% of claims data is unstructured• 82% of insurance executives cite data

and analytics as key strategic priority• 81% intend to increase spending on

data initiatives• 25% of large organizations will have

adopted big data analytics for at least one security or fraud use case by 2018

Big Data and Analytics

2014 Deloitte Development LLC; Ordnance Survey & the UK Chartered Institute of Loss Adjusters

What for?• Manage the business

• Gain operational visibility• Advanced Reporting• Optimize core processes• Fraud management• Avoid other business risks

• Grow the business• Improve customer relationships• Offer personalized offers and pricing• Optimize distribution channels• Up-sell and cross-sell• Increase market penetration

• Keep pace with competitors

Why Big Data is Proving to be a Challenge for Insurance Execs Across Europe

BearingPoint Institute

2015 Novarica

How Do Insurers Currently Use Big Data?

2014 Deloitte Development

Applying big data in insurance Telematics

Visualizations

Advanced Analytics

Claims Analytics

Who Invests in Big Data?

Percent of North American Insurers Investing in Big Data InitiativesSource: SMA Research, Data and Analytics 2014

A Smarter Future: the Five Pillars of Successful Big Data and Smart Analytics

BearingPoint asked insurance executives to rate the importance of the below five pillars to successfully implement Big Data & Advanced Analytics in their company

Insurers’ Future Needs• Improved financial reporting and control systems • Stronger digital capabilities complemented by new skills,

refined metrics, upgraded tools and an innovation culture• Ability to adjust their business model fast to new trends • Predictive analytics and modeling methods tools to manage,

synthesize, analyze and leverage massive data volumes (eg: public information about customers’ lifestyles and online experiences mixed with internal data)

• Programs and systems that ensure structured and disciplined governance of key risks and functions to be regulatory compliant

• Enhanced data security systems and tools (cybersecurity has become a strategic issue for insurers)

Insurance Startups• MetroMile offers “pay as you go” car insurance -> drivers pay by

the mile. • A device tracks the mileage and customers are billed monthly

according to how far they have driven. • The company claims that this saves low-mileage drivers an average

of $500 a year.

• Oscar Health Insurance, currently available only in New York, claims to be built on big data from the ground up.

• It uses big data, modern apps and web interfaces, enabling customers to get real-time information on which doctors and medicines are available to them in their area and to have a 360 view on each customer

Insurance Value Proposition

Insurance Solution - Functionalities

Integrated

Core Business system for life and

non-life lines of business

SalesDirect sales &

partners

CRMRetail &

corporate

OnlinePolicy sales, marketing and customer

service

Claims Traditional &

online channels

BI reports &

dashboards

CollaborationDocument management,

enterprise intranet, e-learning

Insurance – Core Business

Product Management

Underwriting

Accounts & intermediaries

Actuarial reports

Financial Accounting

Policy Management

ReinsuranceBilling and collection

Insurance – Core Business: Brokerage

Product Management

Agents and commissions

Insurers product integration

Financial & Accounting ASF Reports

Policy Management

Insurers Reports

Billing & collection

Insurance – Technical Solution

Built on

Highly Extensible platform with excellent TCO

and time to market

100%integrated

Modular architecture

Web and mobile Accessible UI on laptops, phones and

tablets

On Premises & Cloudavailable deployments

SAP, Microsoft, OracleBi-directional integrated

CONTRIBUTION:Our team has a long term partnership with the customer, delivering in the last 5 years various solutions and services, enabling them to become the first insurance company in Romania to offer its customers the possibility to notify claims online.

Selected Reference: Online sales, e-learning and BI tools The customer is one of the leading insurance services companies in Romania and member of a large International Group, having over 200 agencies and 2000 employees in Romania only

•Policy data management•Policy lifecycle administration•Policy underwriting•Product management•Life product development•Risk Assessment Analysis

Core business

Claims Management

• Online claims management• Corporate website• Online customer portal• Online policy sales

Online solutions

• Sales Activity Management Portal

• Leads Management Portal

CRM

• Data Warehouse• BI Portal• Customer Analytics• Life/non-life agents

commissions

BI

• Mobile Agents Portal with OCR solution

• Mobile Claims Resolution Portal

Mobility

• Document Management• Enterprise Intranet• e-learning

Collaboration

CONTRIBUTION:Our team has a long term partnership with the customer. In the last 5 years we delivered collaborated on various projects, implementing a industry tailored core business system and providing business consultancy

Selected Reference: Core business systems and business consultancyOur customer has been designated the Best Broker 2015 in Romania and is a subsidiary of a large international Group, world leader in insurance and reinsurance brokerage, and human resources consultancy

BI• BI Portal• Agents commissions Collaboration

• Document Management• Enterprise Intranet• e-learning

• Policy management• Product management• Risk Assessment Analysis• Financial & Accounting

Solutions• ASF Reports

Core business

• Corporate website• Online customer portal• Online policy sales

Online solutions

• Sales Activity Management Portal

• Leads Management Portal

CRM

• BI Portal• Agents commissions

BI• Mobile Agents Portal with OCR

solution

Mobility

• Document Management• Enterprise Intranet• e-learning

Collaboration

Integration with brokers platforms & solutions

CONTRIBUTION:Our technical and business expertise was used to build and develop their life core-systems, as well as maintaining the collaboration portal used by over 450 employees and 4000 tied agents.

Selected References: Business applications and business consultancyOur customer is one of the worldwide top players in the Insurance market + 77.000 employees over 65 million customers + 66 billion euro turnover

• Policy Data management• Financial & Accounting

Solutions• Policy lifecycle administration• Policy underwriting• Life product development

• Sales Activity Management Portal

• Leads Management Portal

Claims ManagementBI

• BI Portal• Customer Analytics• Life/non life Agents

Commissions

Core business

CRM

BI

CONTRIBUTION:We developed and launched the 1st insurance online sales portal, dedicated to the direct sales of MTPL , travel and household policies or combined packages with extensive benefits for its customers

Selected References: Online sales portal and business consultancyThe company is one of the top regional players in the Insurance market and a niche player on the MTPL segment for Eastern Europe.

• Policy Data management• Financial & Accounting

Solutions• Policy lifecycle administration• Policy underwriting

• Sales Activity Management Portal

BI• Online customer portal• Online policy sales

Core business

CRM

Online solutions

CONTRIBUTION:Our solution helped them to monitor the sales force activity and pipeline and covers now the entire operational flows of the company. We have also implemented a communication tool and customer portal to engage with their customers crosschannels.

Selected References: Online sales, e-learning and BI tools The customer is an important broker covering both retail and corporate customer segment with dedicated insurance products and services

Integration• Integration with brokers’

platforms and solutions

• Policy management• Product management• Risk Assessment Analysis• Financial and Accounting

solutions• ASF Reports

Core business

• Corporate website• Online customer portal• Online marketing solution:

multichannel communication

Online solutions

• Sales Activity Management Portal

• Leads Management Portal

CRM

• Document Management• Enterprise Intranet• e-learning

Collaboration

• BI Portal• Agents commissions

BI

Integration with brokers platforms & solutions

EITG Big Data Quick Wins

&

Understanding Benefits of ImplementingBig Data with Hadoop

Immediate Business Results • Generate new insights • Enabling short term business

benefits• Measurable results

• Test Hadoop Technologies • Complement traditional BI / DWH

infrastructure with innovative solutions.

• Expertise and Know How

Approaching big data in small steps

BIG DATA EXPERTISE

Euro IT Group Triple Expertise

PROVEN TECHNOLOGIES

INSURANCE EXPERTISE

Domain Specialists

Big Data Professionals

• Ensures results are matching expectations.

• Peers with operator marketing team.

• Integrates multiple data sources• Develops or customize real-time

and batch processing big data jobs.

• Complex statistical data analysis requested by the marketing specialist.

Big Data Specialized Delivery Team

Data Scientist

Software Engineers

Marketing Specialist

Euro IT Group Expertise

•Business analysis•Consultancy•System integration•Software development•Software testing•Information security •Web and mobile apps •Enterprise mobility•Cloud strategy•BI•Big data •CRM and loyalty•Ecommerce development

• Conventional (.NET, Java, PHP/LAMP, C/C++)

• Cloud/big data (Amazon, Windows Azure, Salesforce)

• Mobile (IoS, Android, Windows Phone, Blackberry, HTML5)

• Other (Ruby on Rails, Python, embedded software, Databases)

• SAP, Microsoft, Oracle, other technologies

•Telecom•Financial•Healthcare•Media •Retail & distribution•Insurance

Services and Solutions

Technologies Industries

Technologies We Master

JAVA: Apache Tomcat, JBoss AS, Jetty, IBM WebShere, Oracle, Application Server, WebLogic, Windows Server

IIS, Nginx, NetWeaver)

PHP: CodeIgniter, CakePHP, Zend, Yii, Kohana, Wordpress, Joomla,

Drupal, MODX, Magento, Prestashop, IPBoard, Smarty

ASP.NET, Visual Basic, ASP.NET AJAX, ASP.NET MVC, Remoting, Reflection,

ADO.NET, Entity Framework

MICROSOFT: C++, C#, ASP.NET,

ASP.NET MVC, Silverlight

MOBILE: Android, IOS, Windows 8, iPhone SDK,

Android SDK, JQuery Mobile, Flash Lite, J2ME,

Symbian, XMPP, SMS, WAP

BIG DATA: Hadoop, Hadoop Map reduce, Spark, Storm, Mahout,

Apache Pig, Apache Hive, Elastic Search, Cassandra, Apache HBase

CLOUD: Amazon web services, Amazon EC2,

Windows Azure

Technologies We Master

OTHERS:• Web Services: Apache CXF, Axis, SOAP, WSDL, JAXB, JAX-WS• Web technologies: XHTML, HTML5, XML, XSL, XSL-FO,XSLT, CSS, XPath, XQuery, SAX,

DOM, StAX, Xerces, Flash, Flex• Content Management Systems: Stellent• Messaging Middleware: ActiveMQ, IBM MQ Series, Fiorano, MQSonic, TIBCO

rendezvous

WEB: HTML5, XML, XHTML, XSLT, DHTML, CSS, XSLT, Javascript, jQuery,

PHP

BUSINESS INTELLIGENCE: Pentaho BI, crystal

Reports, Microsoft BI

Microsoft Visual Studio, Windows API, ActiveX, XCode, wxWidgets,

STL, WinDDK, Qt Framework, Microsoft CRM

AJAX & JAVASCRIPT: JQuery, YUI, ExtJS, JSON,MooTools,

Prototype JS, Dojo, YUI, Scriptacoulous, ASP.NET Ajax

control Toolkit, etc.

Why us?

• Proven track record in delivering complex projects• We offer a well balanced blend of technology skills, domain knowledge, hands

on experience, effective methodologies, complex language skills and a great passion for converting business ideas into technical products

• Western business culture, excellent English language skills, French, German, Italian, Hungarian speaking resources

• Convenient locations and favorable time zones• Proof of capability based on low cost pilot projects• Capability for fast project initiation and delivery• Well defined and documented software development process• High focus on staff trainings, employee satisfaction and an effective

recruitment process – stable qualified teams

Want to talk to one of our insurance experts or our data scientists?

www.euroitgroup.com Contact us: office@euroitgroup.com

Talk to us NOW!