Business Intelligence
in the
Insurance Industry
Tom Chesbrough, President & CEO
Kapstone Systems, Inc.
Emerging Technologies &
Data Management Seminar
April 23rd & 24th
INSIGHT
KNOWLEDGE
INFORMATION
DATA
…management
in action.
What is Business Intelligence?
Business Intelligence is a process of
assembling disparate data, transforming it
to a consistent state for business decision
making, and empowering users by
providing them with access to this
information in multiple views.
Why is it Important?
•
•
•
•
Data overload
Competition from all sides
A need to “know your customer”
Immediate reaction to marketplace shifts
Harness the Power
Within Complexity
Billing
Policy
Claim
Policy
Reporting
A/P
Claim
Billing
Complexity
of
Information
Policy
•
•
•
•
Pricing
Risk Analysis
Retention
New Business
Acquisition
The Business Benefits of Data Warehousing
Better Quality
of Data
35%
Better Understanding
of the Business
20%
More Timely
Decisions
30%
Exploit New Market
Opportunities
15%
Meta Group Survey of 300 Companies Implementing Warehouses
Six Key Steps to a Successful
Business Intelligence (BI) Implementation
• Step 1: Define business issues and related
information requirements.
• Step 2: Develop logical and physical
architectural models, determine appropriate
sources for the required data, and validate
accuracy and consistency of data.
• Step 3: Assemble the relevant data
identified in step two above.
Z
ALERT
ANALYTICAL
Thazar
Architecture
Z-ALERTTM
Z-WEBTM
Z-QUERYTM
DATAMARTS
OLAP (On-Line Analytical Processing)
Z-CATTM
DATAMART BUILDERTM
INSURANCE WAREHOUSETM
WAREHOUSE BUILDERTM
OPERATIONAL DATABASES
OLTP (On-Line Transaction Processing)
INSURANCE
WAREHOUSETM
Thazar
Warehouse
Builder
Multiple Databases
Lack of Legacy Standards
Unlimited:
•formats
•structures
•attributes
•code sets
all within fields
with the same
meta labels!
FILE 1
MARK DI LORENZO
DENIS E. MARIO
TOM & MARY ROBERTS
MA93
CT15
IL21
FILE 2
DILORENZO, MARK
MARIO, DENISE
ROBERTS, THOMAS & MARY
6793
0215
8721
FILE 3
MARK DILORENZO ESQ
MRS DENNIS MARIO
MR & MRS THOMAS ROBERTS
BOSTON
HARTFORD
CHICAGO
Data Surprises in Individual Fields
Meta data -- “What you wish you had in your data values” - Ken Orr
Meta
Actual
Data
Values
NAME
SOC. SEC#
TELEPHONE
Denise Mario DBA
228-02-1975
6173380300
Marc Di Lorenzo ETAL
9999999999
3380321
Tom & Mary Roberts
025-37-1888
First Natl Provident
34-2671434
415-392-2000
Digital 15 State St.
101010101
508-466-1200
Astorial Fedrl Savings
LN#12-756
212-235-1000
Kevin Cooke, Receiver
18-7534216
FAX 528-9825
John Doe Trustee for K
111111111
5436
External Data
Key Steps of a Successful
BI Implementation
• Step 4: Transform data to a user-focused
view.
• Step 5: Distribute data where it is needed
in the organization.
Desktop User/Managers
Multiple
Datamarts
Thazar
Datamart
Builder
INSURANCE WAREHOUSETM
Heterogeneous Products in
Insurance
•Multiple Custom Schemas:
Auto Coverage dimen
Customer dimension
Status dimension
Month_key
Auto_Coverage_key
Agent_key
Customer_key
Policy_key
Status_key
Written_Premium
Earned_Premium
Num_Transactions
Auto_Limits
Auto_Deductibles
Other_Auto_Facts
Month dimension
Agent dimension
Policy dimension
Key Steps to a Successful
BI Implementation
Step 6: Provide users access to data for
intelligent queries and business decision
making.
Software Agent
Software Routine that
waits in the background
and performs an action
when a specified event
occurs.
User/Manager
Desktop PCs
Multiple
Datamarts
Active Software Agent
THAZAR Z-WEB
Internet/Intranet Decision Support
•
•
•
•
•
Affordability and Rapid Development
Scalability
Maintainability
Reliability
Security
Internet Decision Support
Environment
Z-WEB
Web
Server
Decision Support Server
Decision Support Client/Browser
Data Warehouse Server
For more information on
business intelligence for the
insurance industry,
please contact:
Tom Chesbrough or Dennis Lynch
888-KAPSTONE -or- 816-760-5000
marketing@kapstone.com