leveraging big data at ced
TRANSCRIPT
Big Data Analytics event
Leveraging
Big
Data
Amsterdam, May 14, 2014
@jochemdavids jochemdavids.nl
3
• Introduction to CED • History • Key figures
BUSINESS BACKGROUND
• Maturity model • Straight Through Processing • Data driven propositions
BIG DATA
• Market trends • Strategic choices • Challenges
STRATEGY
• Please feel free to ask any further details
QUESTIONS
Agenda
1 2
4 3
Business background
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“The whole claims process at one company”
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• Founded in 1971
• Number of employees 1.150
• Offices in 14 European countries
• Partners in 28 countries worldwide
• Handles approx. 1 million claims per year
• With a total claim cost of more than 2bn euro
• Revenue FY2013: 105 million euro
Key figures
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Core businesses
LOSS ADJUSTMENT DIRECT REPAIR MANAGEMENT
CLAIMS MANAGEMENT
Strategy
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• Due to safer infrastructures and safer cars.
• Consumers demand high service standards and web/mobile channels.
• Due to Solvency II and the will to improve Combined Ratios.
• Other forms of damage assessment e.g. based on statistics and big data.
Substitutes Cost
savings
Less
damages
Role of the consumer
“Market trends demand a shift in strategic focus”
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Loss adjustment
Claims Management
Direct Repair
“Market trends demand a shift in strategic focus”
Loss adjustment
Cla
ims
Ma
nag
em
en
t D
irec
t Rep
air
Visual representation current revenue distribution
Visual representation future revenue distribution
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• The integration of Claims Management with Loss adjustment and Direct Repair
• First Contact Resolution
Full service provider
• Decision making at FNOL
• Up to 80% automation (simple claims)
• Manage the exceptions (complex claims)
Automated Claims
Handling (STP)
Strategic choices
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Changing something we (successfully) did for the past 40 years
Cannibalizing part of our core business by developing another
Fighting a market image, based on our strong history
Dealing with unilateral employee competencies
Batteling our IT legacy
Strategic challenges “Disrupt yourself before someone else will”
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Strategic challenges “We are not alone…”
Big Data
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Big Data Maturity mobel
Current business
model now dependent on Big Data
First project(s) show clear
ROI
How does this work? We’re OK
thanks
Where do we start?
Continuing to learn and
enhance
Creating a new
business model
0 1 2 3 4 5
Level of Big Data Maturity
Increasing Big Data Maturity
In the dark Catching up First pilot(s)
Tactical value
Strategic value
Optimize & extend
Source: Radcliffe Advisory
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• Receipt and registration of the Claim
• Verification of the Claim coverage and liability
• Evaluation and assessment of the Claim
• Financial settlement and/or Repair in kind
• Client data • Premiums paid
Main Claims process
Notification Verification Assessment Settlement
and/or Repair
Coverage check (1)
• Business rules • Claim history • External sources
- Credit bureaus - Kadaster - Social media
Fraud check
Straight Through Processing
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• Receipt and registration of the Claim
• Verification of the Claim coverage and liability
• Evaluation and assessment of the Claim
• Financial settlement and/or Repair in kind
• Event and policy
Main Claims process
Notification Verification Assessment Settlement
and/or Repair
Coverage check (2)
• Decision service for multiple party car accidents
Liability check
Straight Through Processing
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• Receipt and registration of the Claim
• Verification of the Claim coverage and liability
• Evaluation and assessment of the Claim
• Financial settlement and/or Repair in kind
• Based on statistical and technical filters estimation of the damage
Main Claims process
Notification Verification Assessment Settlement
and/or Repair
Evaluation of claim
• Based on business rules initiate payment or repair service
Settlement service
• Based on business rules decide the repair type and available and specialized repairer
Repair service
Straight Through Processing
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Data driven propositions
Core business process
Data generation
Data driven propositions
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Data driven propositions
Damage history check for cars
•(eg. website or app)
Claim sensitive locations
•(eg. Insurers or local government)
Calculate your damage
•(eg. Consumers: car or property)
Claims data for improving creditscore
•(eg. Banks or insurers)
Perform fraud analytics and/or define fraud rings
•(eg. Insurers or lease companies)
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“From gameshow rockstar to worlds best claims handler?”
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“From gameshow rockstar to worlds best claims handler?”
“From gameshow rockstar to worlds best claims handler?”
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Google Glass concept
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Conclusion
Recognize the strategic importance
Organize innovation the right way
Start with business models in mind
Combine internal and external sources
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2
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Rietbaan 40 – 42
Postbus 393
2900 AJ Capelle aan den IJssel
The Netherlands
T +31 (0)10 284 34 34
Thank you for your attention
Jochem Davids