LOOKING BEYOND INSURANCE – ANALYTICS AND
ADVANCED ANALYTICS
Ben Fidlow, Global Head of Core Analytics, Willis Group
USING ANALYTICS
What to Take Away?
•
How to Identify Ways to Use Analytics to Measure Risk
•
Understand How to Identify Opportunities and Drive Results Through Effective Communication
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USING ANALYTICS
Current Dynamics in Risk
Global Client Council Feedback
Analytics Value Add – Driving Better Decisions
Analytics Strategy
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USING ANALYTICS
Observations Implication on Willis Strategy
Capital – changes in source and
usage
Core Analytics
Customized Analytical & Consulting
Decisions
Demand for greater transparency
across the risk landscape
Alternative Risk Finance
Increased board level and
stakeholder focus around
protecting brand
Demand for broader use of data
and analytics to support decision
making
Complex Claims and Forensic
Capabilities
Globalization of Risk Engineering &
Claims
Risk Technology
Increasingly active regulatory
and legislative regimes
Integrated Workers Compensation
Solutions
2014 Willis Global Client Advisory Council Meeting | 3
USING ANALYTICS
Observations Implication on Willis Strategy
Capital – changes in source and
usage
Core Analytics
Customized Analytical & Consulting
Decisions
Demand for greater transparency
across the risk landscape
Alternative Risk Finance
Increased board level and
stakeholder focus around
protecting brand
Demand for broader use of data
and analytics to support decision
making
Complex Claims and Forensic
Capabilities
Globalization of Risk Engineering &
Claims
Risk Technology
Increasingly active regulatory
and legislative regimes
Integrated Workers Compensation
Solutions
2014 Willis Global Client Advisory Council Meeting | 4
USING ANALYTICS
Current Client View on Analytics (From Global Client Council)
“Proper delivery of
impactful data to Risk
Management will
elevate the thinking
process”
“Analytics take the
emotion out of
decisions”
“Use analytics to
link different risks
with the focus on
impact”
“How do you make
decisions without
analytics?”
Key Takeaway: All Respondents Value Analytics and Want More
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USING ANALYTICS
Current Utilization of Analytics
Client Feedback
Observations
Very Little Use of
Advanced Analytics
 Benchmarking
 Score Cards &
Trending
 Loss Control
 Allocations
Needs:
- External Data
Next Steps
•
Lots of room for
improvement
•
Quick Fixes –
Scalable Tools,
Dissemination of
Risk Data
•
Longer Term –
Collaboration,
Strategy and Risk
Technology
Support
- Better
Transparency
- Risk Evaluation
for Business
Leaders
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USING ANALYTICS
Support Strategic Business Goals
Client Feedback
Observations
Next Steps
“Drive Cost
Improvement”
“Build Cost of Risk into
Performance Metrics”
“Communicate so
people understand the
risks they are taking”


Diverse responses
as to the level of
engagement.
All respondents
looking to improve
in this area.

Strategy

Customization
“Justification Required
for Capital
Expenditures”
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USING ANALYTICS
Measurement of Insurance Value
Client Feedback
“Needed for Board Due
Diligence”
Observations

Diverse responses
as whether ROI is
needed.

All would value a
better Cost Benefit
analysis.
“Need to Articulate the
Financial Benefit”
“Validation of expense
is critical if you want to
be my brokerage
partner”
Next Steps

Connect Risk
Tolerance with
Prospective Loss
Modeling

Communicate
Impacts in
Language
Meaningful to CFO
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USING ANALYTICS
The Value Created By Analytics Utilization
Ranking from 1 to 10 (10 is Most Important)
Standard
Average
Deviation
Insurance Buying
7.8
1.3
Risk Mitigation
7.9
1.4
Captive Evaluation
7.8
2.7
Broader Risk (i.e. ERM)
7.8
2.2
RM Alignment w Business
6.8
2.1

All applications valued evenly on average

Little disagreement regarding better analytics for risk transfer and risk mitigation

Does this view hold for Real Estate and Construction?

Perhaps business alignment view will improve if we do the “easy stuff’ right
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Using Analytics – Creating a Tangible Value Add
 Measure Risk
 Communicate Risk
 Incorporate Risk into Decision Making
 Risk Tolerance
 Impact on Financials
 Create Risk Metrics
 Evaluate Options
 Risk vs Return
 Identify Opportunities
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Using Analytics – Enhanced Decision Making
 Better Utilization of Capital and Resources
 Efficiency of Spend
 Allocations Leading to Better Business Valuation
 Proactive Business Decisions
 Risk Mitigation
 Incorporation of Risk Metrics
 Longer Term View of Risk and Return
 Align Business and Risk Strategy
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USING ANALYTICS
Adding Value by Driving Better Decisions – Low Hanging Fruit
 Understand Risk – Quantification and Communication
 Value Impact /Risk Tolerance– Institutionalize Risk Metrics & Value Volatility
 Make Tangible - Insurance Efficiency analyses by layer
 Multi peril risk assessment for property

Dynamic more actuarially sound and impactful analytics for casualty exposures
 Diagnostic analytical tools for workers compensation

Upgrade C-Suite Decision Tools decision making analytics for D&O and Cyber
 D&O and Cyber
 International D&O
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Using Analytics – Modeling Examples
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