axa at the chief analytics officer forum, europe

HOW TO TRANSFORM INTO AN

ANALYTICS DRIVEN COMPANY…

SMART DATA @ AXA CH 03.2016

AXA – Winterthur / Kristian Kanthak

AXA – a global leader in insurance and asset management

2 |

*figures from 2015

59 countries

161,000 employees

103m customers

€92bn revenue

€1,227bn assets under

management (12/2014)

€65.2bn equity

AXA Winterthur / Kristian Kanthak

AXA Switzerland – a dynamic company since 1875

1.89m customers

CHF 11.1bn bus. volume

4000+ employees

2600 distributors

28.3% market share L&S

13.1% market share P&C

*figures from 2014

#1 in Swiss insurance

market

3 | AXA Winterthur / Kristian Kanthak

If you want to become an analytics-driven organization you need to

transform the whole business…and it is a longterm learning journey


Development Stages of Data & Analytics

Source: McKinsey: “Transforming into an analytics-driven insurance carrier“

The analytics value chain consists of four steps - My experience: Value is

created mainly thru Business Transformation


Analytics Value Chain

… but value is created thru transformation of our business.

Data Collection

Infrastructure & Tools

Data Analytics

Business Transformation

We talk a lot about...

…our pain: Data collection takes 80% of the time as per today...

…we love talking about "rocket data science & algos"…

Which steps did we

take?

Vision

1. Step: Creating an ambitious Vision 2020


VISION 2020 We are shaping the change towards a data driven & customer oriented AXA, are creating value across the entire value chain and are thus increasing our earnings by…!

Why?

STRATEGY By means of optimal data provision and usage we will..better understand our customers (targeted address)..enhance our pricing, risk selection and offers, optimize our assigning of resources and processes, reduce claims costs and enable financial and management decisions which are more intensely based upon facts.

What?

LEVERS How?

High-quality , comprehensive data & data security

State-of-the- art systems & infrastructure

Cooperative team behavior – self dependent employees – holistic thinking & entrepreneurial action – open sharing of information and continuous learning and coaching

Close proximity to business & superior business understanding

Intense transversal collaboration within networks (including externals and other entities, active know-how sharing)

2. Step: Create a cross functional team to drive data transformation

across the value chain – leverage existing resources helps!


Customer Segment

Mgmt./O&I P

New Business Innovation

& Ventures

Digital Business &

Transformation

Customer Segment

Mgmt./O&I U

Big Data & Advanced

Analytics Strategy & Corporate

Development Brand & MarCom

Management

Transformation & Market

Management

Chief Executive Officer

New structure

In charge of transformatory mission to implement ambitious vision and

strategy

Cross-functional bundling and expansion of Advanced Analytics

capabilities

Close collaboration across the organisation

3. Step: Create a Data Strategy, which starts by asking " how can you

create value for the customer & the business

Smart Data enables us

to generate added value for our

customers and allowing a standout

customer experience at all touch points

Organization,

People &

Capabilities

Infrastructure &

Tools

Data

Strategy


Realizing at least XX mCHF Earnings through "Data Transformation"

along the entire value chain

AXA Winterthur / Kristian Kanthak 9 |

4. Step: Take a look at your value chain, identify use cases and

create a x-functional Business Transformation roadmap


Claims Handling

Policy Management

Product Development

Marketing & Sales

Underwriting & Pricing

Insurance value chain

Identify Use Cases

Trigger-based customer targeting

Competitive Pricing

Telematics Insurance procurement

Fraud detection

5. Think holistically in designing the organisation & cover all steps of

the analytical value chain


Data Collection

Infrastructure & Tools

Data Analytics


Chief Data/Analytics Officer

Data

Analytics

Strategic Data

Mgmt.

Business

Transformation

Data Quality Governance

6. Create an agile organisation that combines key data skills and business priorities … foster small cross functional, agile teams


Claims Analytics

Resource Steering/ Process Optimization

Strategic Decisions / Financial Steering

360° Customer Interaction

Offer, Pricing & Risk selection

Coach & "KAM"

Initiative Leader

Agile team structure

Business

priorities

Analytics Value Chain Team Leader

Team Member

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7. Step: Hire diversity - create a team with broad business experience

across business functions & industries


Business Transformation Team

Age:

30 – 50

Working for AXA:

3 to 8 years

Education

Finance

Business Engineer

Economic & Geography

Comm. & Computer

Working Experience

Strategic steering

BI Development

Change Management

Sales, Pricing & UW

Customer segmentation

Business Analysts

Industries

Telco / Banking

Logistics /Manufacturing<

Data Analytics Team

Age:

25 – 40

Working for AXA:

1 to 15 years

Education (University Degrees)

Statistics / Mathematics

Telematics

Comm. Technology

Data Analysis

Computer Science

Working Experience

Data Mining

Consulting

Modelling

Campaign Selection

Industries

Manufacturing

Consulting

Telco

Strategic Data Mgmt. Team

Age:

25 – 56

Working for AXA:

1 to 17 years

Education (University Degrees)

Business Administration

Economic

Statistics

Comm. & Computer

Working Experience

Business Analysts

Consulting

BI development

BI Architecture

Transformation

Data Governance

Data Quality Management

Industries

Telco / Banking

Pharma

8. Step: Establishing an analytical network & community to gain

traction in the whole company and kill siloes!


Data Innovation Lab

IT Big Bet 2 & Big Bet 3

P&C Commercial

NORCEE P&C

Operations / Claims

Market Management

Distribution/ Sales

CC Data & Analytics


Datenmanagement Analytics

IT / AGS

(EDWH)

L&S

Risk Management

Finance

HR

P&C Pricing

P&C Private

P&C Controlling

Connected

Devices

Financial Steering

Claims Analytics

Trigger Based CRM /360°

Customer Value Mgmt

Data Start-ups / ICF

Customer Insights

Data Board

To become a data-driven company we have to drive an

organizational transformation


Thank you!