The Editors and Publisher of The Intersection thank you for your support during our introduction and wish you the very best for the holidays and for the new year.
We will be back in full voice early in 2011.
The core problem has been the volume and type of data that is required to be gathered, synthesized and intelligently acted upon has defied easy solutions. Collecting and intelligently analyzing inspection data, photographs/videos, claims history, financial information, and more has seemed unattainable.
However, better forms of multi-media collection, combined with modern content management and analytic technologies are offering opportunities. Several vendors and carriers in Canada and the US are utilizing existing Data Standards combined with new collaboration solutions to present more complete submissions electronically. At the 2011 Insurance-Canada.ca Technology Conference (ICTC), Doug Johnston from Applied Systems will summarize the opportunities and progress to date in a presentation and panel discussion titled “Commercial Lines, What’s Next?”.
Once the data are in, there are other developments with predictive analytics that are showing measurable differences. According to Towers Watson’s most recent survey of commercial lines pricing, “results continue to indicate that companies that use predictive modeling for pricing/risk tiering or risk selection are, on average, more successful at holding onto price levels than those that do not use predictive modeling.”
Several experts on analytics are part of the faculty of the ICTC.
IT World Canada reports that Canada may have significant legal and geographic advantages as a location for cloud based computing services.
Michael Geist, law professor at the University of Ottawa, is quoted in the article as saying: “Location matters and where the cloud exists matters an awful lot when it comes to issues around privacy and compliance related concerns.” He is referring to the Personal Information Protection Electronics Document Act (PIPEDA) which addresses compliance and data concerns that businesses entertain when considering having their information in the cloud, according to Geist.
The artcile indicates that the advantage is not permanent, and the legislation must keep pace to required changes. It quotes Geist as saying: “You are going to increasingly see people engaging in jurisdiction shopping in terms of trying to find places where there are privacy assurances and compliance systems in place.”
A second advantage is the impact of Canada’s geographic location on costs. Sever farms required to maintain cloud technology can be expensive to keep cool. IT World Canada notes that Canada could offset cooling costs by our naturally cool air.
At the 2010 Insurance-Canada.ca Technology Conference, Jim McGregor, CEO, The Precept Group, and long-time supporter of technology to improve the insurance business, made a controversial statement. To paraphrase, Jim said that when he first got involved in broker-carrier interface in the late 1980s, the expense ratio for broker supporting insurers was 35% – ‘unacceptably’ higher than direct writing companies. Now, 20+ years later, the expense ratio for the same group is … 35%!
Does this mean there has been no progress? Does it mean that other factors are at play? Perhaps. Regardless, it is clear that technology professionals must get used to 1) aligning with business results in planning, 2) supporting delivery of quantifiable business results in executing plans, and 3) being accountable for the impact of their efforts on business results.
The 2011 Insurance-Canada.ca Technology Conference (ICTC) is placing Results at the centre of its theme and its logo (see our recent post). Several of our faculty will be addressing impacts of technologies and processes on results.
Kimberly Harris-Ferrante, Vice President and Distinguished Analyst for Gartner will be presenting the importance of balancing tradition and innovation in the evolving insurance market to respond to new demands for profitability. She will be offering results from a new Gartner study on forces of change in the Canadian insurance industry to be released first at the 2011 ICTC. Also, Rob Garmaise, VP – Research and Product Strategy, Info-Tech Research Group Inc. will be addressing issues and opportunities with IT benchmarking.
See the topics description page at the ICTC conference site for more information on these and other confirmed presentations. And don’t forget to register soon to take advantage of Early-Bird discounts.
Welcome to The Intersection, an Insurance-Canada.ca Blog.
Since 1995, Insurance-Canada.ca has been devoted to providing technology/insurance content through its web site, seminars, conference, and newsletters. The website has become a meeting point for insurance and technology professionals and consumers. The Intersection is intended to extend the distribution and expand the content, Hence the sub-title: Where Canadian Technology & Insurance Travellers Meet.
First, we will use The Intersection to add content which doesn’t nicely fit elsewhere and to elaborate on news with views, counterpoints, etc.
We will also use the Blog for some new, original content that Insurance-Canada.ca is developing with some key partners. Stay tuned for that!
At the same time, we hope you will use The Intersection to better give us your opinions. We will seek this with surveys and questionnaires. We also welcome comments and suggestions on postings.
We will moderate the comments, but only to take out direct solicitation , derogatory comments, slander, libel, spam, and items of bad taste. Beyond that, the floor is yours.
We’ve been trying our hand at this for a while and have retained archives for a month or so from our launch. You’re welcome to browse the archives. It’s not perfect, and we expect to change … Based on your feedback.
Thanks for your interest. We are looking forward to where we go … from The Intersection.