Big Data & Analytics Heroes
Christopher Morkunas, Data Governance Manager of Safety Insurance Company and this week’s Big Data & Analytics Hero, says his executives were really bothered that their “company still did not have a single version of the truth,” despite the fact that they have been in business for a long time, are as big as they are and exist in the modern age. How can “two or three actuaries try to make the same report, and end up with two or three different answers?”
They needed “a single view of the customer as a whole” in order to “to figure out who their best customers are." With help from IBM, their data is connected to Cognos and weekly reports are created, giveing them “the power to use policy data to help fight fraud." Across a business of any size, if you put that “on a scale of a dozen reports, you end up feeling pretty good about the investment.”
How are big data and analytics changing business strategy?
A whole new world’s opened up to us. A better view of our customers led us to new business and the ability to provide a better customer experience. Now we know exactly what policies a customer has with us and how they’ve run over time, at a customer level. In terms of rating, we now have the ability to look at somebody’s auto coverage and rate their homeowner policy on it.
What’s the biggest business impact of better and faster reports?
On a day-to-day basis, the biggest impact has got to be the speed. It’s so much faster now that we can determine loss ratio by customer and figure out who our best customers are. In addition, the robustness of the system has allowed us to have the power to use our policy data to help fight fraud.
What benefits did you experience now that you have more insight into your existing data?
Data helped us figure out who our customers are! We can cross reference actual claims coming in with all a single view of customer data, and see if there are certain customer attributes that lead to things like soft tissue injuries or several total losses over the life of the customer.
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