“Get Smarter”: IBM white paper details data analytics in the Canadian life insurance industry

This white paper brings together findings from the SMA study conducted in the first half of 2012 with insights for Canadian Life insurance companies and IBM’s own global experience with insurers, focusing on the shift that is underway from business intelligence to more sophisticated analytics. It highlights new initiatives in approaches such as predictive analytics and explores the expansion of analytics from the traditional risk-centric parts of the business to the customer, finance and operations areas.

Insurers that manage their information as a vital corporate asset and
leverage it to gain new insights through analytics are in a position to
fundamentally transform their businesses as well as maintain a competitive
advantage. IBM is actively engaged in assisting L&A insurers with
information-led transformations. We believe that using analytics in
conjunction with integrated systems is the key to guiding decisions across
the enterprise and providing optimum service to policyholders.

To achieve true transformation, insurers are extending their use of
analytics to all areas of the business, including channel performance and
optimization; customer analytics; new business/underwriting; and executive
dashboards. The siloed, tactical or one-off approach is no longer a viable
option. Business analytics and performance management must be nurtured as a
core competency, supported by senior business sponsorship and
business-driven projects.

It is an exciting time, with the insurance industry just scratching the
surface in terms of the types of applications and business insights that
will drive competitive differentiation.

Download the whitepaper for insights:
Get Smarter: Data Analytics in the Canadian Life Insurance Industry (PDF).

Highlights

Several key findings emerged from the SMA research:

  • The primary focus for sophisticated analytics in L&A has traditionally been in the actuarial area for risk-centric analysis (product design, pricing, reserving). However, analytics are now increasingly being used across the business for customer-centric, finance-centric, and operations-centric activities.
  • Overall, L&A insurers are less experienced in using advanced analytics than their P&C counterparts. Canadian L&A insurers are on par with their U.S. counterparts in areas such as campaign analysis, channel performance and CRM analytics, but are behind in leveraging analytics in other areas.
  • Currently, more IT spending is concentrated on traditional business intelligence and less on advanced/predictive analytics.

About IBM

IBM is one of the largest technology, services and consulting organizations. We help clients of all sizes and in all industries transform their operations through the use of technology, infusing intelligence into the systems that run our businesses, our society and the world. Visit www.ibm.ca.