C.A.S.
RATEMAKING SEMINAR
Las Vegas, 2001
INT-1
Introduction to Insurance Data
Management
Donald M. Wulf
Illinois department of Insurance
Monday, 12 March 2001@ 9:15am – 10:30am
Data Managers, Who-What-Where
There is a group of people within insurance
organizations whose primary day-to-day function is
to provide business managers with the information
they need to accomplish the goals and objectives of
the organization.
– Core data managers are involved in:
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Internal data coordination
External data reporting
Information systems development
Data administration
What is a Data Manager?
• A Data Manager:
– Provides data
• To internal customers
• To external customer
– Is concerned that the data provided
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Is accurate & consistently derived & defined
Is readily available and timely
Is comparable/reconcilable
Secure
Who are the customers?
• Internal customers include:
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ACTUARIES
Underwriters
Accounts
all other Business Units
Who are the customers?
• External customers include:
– Statistical organization
– Rate making organization
– Insurance research organizations
– State & Federal regulators
The data manger’s job?
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To interpret requests for data
Determine how to obtain data
Determine where to obtain data
Control the cost of development and
maintenance
• Provide data to customers in appropriate
format
Data Management’s Task
The data manager’s task is to assure that the same data
in different systems can be reconciled, that the data
is consistent, and that derived data is defined and
calculated consistently.
Partnerships
Data users are, and should be, involved in a partnership
with insurance data managers.
-A partner in
= defining systems
= building systems
= testing systems
= and final acceptance of a system.
Knowledge and Other Users
Just as Data Managers need and must have knowledge
of the customer’s they serve, so must other insurance
professional understand the Data Manager’s function.
EACH TIME AN INDIVIDUAL WANTS
INFORMATION, DATA MANAGEMENT SKILLS
COME INTO PLAY.
It must be determined where the data is, how it is
identified, how it is defined
AND HOW IT CAN BE VARIFIED.
What do you need to know about
Data Management
Data definitions and how they differ.
Coding conventions.
Data redundancy.
Level of data available/needed.
(Transaction level to aggregated by class/subclass/line)
Where did the data come from and how is it maintained.
Schedule for updating.
Reasonability and reliability of the data.
Who are Insurance Data Managers?
• Managers of data which can be anyone
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Professional insurance data managers
Actuaries
Underwriters and Agents
Claims personnel and SIU’s
Marketing personnel and Researchers
Accountants and Economists
and countless Others
Who Owns the Data?
Data use - implies data ownership - which mandates control.
An individual companies data is one of its most valuable
assets, if not its most valuable asset.
With control comes definite responsibilities.
- You also become responsible for your data’s
- VALIDITY
- ACCURACY
- REASONABILITY
- COMPLETENESS
Confidentiality and Privacy
All users and managers of data MUST be constantly
aware of the issues surrounding Confidentiality and
Privacy. Confidential data is very different from data
that is controlled by privacy laws.
To avoid any further confusion however, lets change our
point of reference
from
Confidential/Privacy
to
Intellectual property
Insurance Data, an Intellectual
Property
Is all Insurance Data an Intellectual Property?
Is Insurance DATA, the Asset, an Intellectual Property?
How do you as a User treat the Data you use?
•As an ASSET
•As Intellectual Property
•As Confidential
•As a Trade Secret or as Proprietary
A Paper of Interest
“Insurance data and Intellectual Property Issues”
by Alan Wickman, ACAS
This paper discusses such as:
>Statistical Reporting & State Insurance Regulation
>Trade Secrets
>Ownership and Control
>Controversies Surrounding Disclosure of Insurer-Specific data
>Intellectual property Issues & Advisory Organizations
AND OTHERS
The Data Management
Environment
Micro-Computers have changed the data management
environment. Literally every user of a micro-computer
has had to become a data manager.
The Insurance Data Management Association(IDMA)
provides education and a forum for knowledge in this field
Insurance Data Management
Association(IDMA)
IDMA has partnered with the CAS and is prepared to share
its knowledge of data with CAS members.
The IDMA’s “Data Management for Insurance
Professionals” is available we speak. It is designed as a
primer and is intended for both the professional and those
yet to become professional within the insurance industry.
For further information on this course contact the IDMA at
1-212-558-2130.
IDMA
Data Management for Insurance Professionals
Chapters at a Glance
I. The History of Insurance Data Management
II. Role of Insurance Data Manager
III. Key Data Elements of Insurance
IV. Insurance Company’s Use of Data
V. The External Insurance Environment
VI. Data Quality
VII. Data Repositories
VIII. Future Data Management Issues