1. What is the Fourth Industrial Revolution*?
“Fusion of massive amounts of data and smart connected machines across the physical, digital and biological domains”
* Revolution - denoting abrupt & radical change
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2. The 4th Industrial Revolution
Drivers – Data, artificial intelligence & machine learning
DATA
90% of the world’s data has been created in the last two years
Artificial Intelligence
Human skills such as:
Decision making
Visual perception
Speech recognition
Machine learning
Ability of machines to learn without being explicitly programmed
Chess Go
Poker
…REALLY!
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3. The 4th Industrial Revolution - impact on our business models
World’s largest Taxi company, owns no vehicles.
World’s most valuable retailer, has no inventory.
World’s largest accommodation provider, owns no real estate.
World’s most popular media owner, creates no content.
Something interesting is happening
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4. Technology and Analytics
What are we thinking?
The Broker of the Future will deliver an ecosystem that enables clients to:
Collaborate more efficiently with their teams
Access deep analytical tools supported by AI
Manage and access data
Manage their processes
Effectively access capital – e.g. direct feed to algorithmic underwriting
Engage expertise
Insurers using analytics:
Underwrite more efficiently
Get closer to clients
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5. Why do I manage insurable risk so differently from other risks?
What we are hearing?
Why do I manage insurable risk so differently from other risks?
Are we getting a proper return on our risk spend?
Are my insurance programs aligned with my organizational (risk) tolerance for volatility?
We ultimately want to take a holistic view across all of our risk spend (insurable, pension risk, commodity, currency, supply chain, etc.)
Does my current insurance program perform? I am concerned about:
Contract certainty
Insufficient limits
Long waiting periods to get paid
Transparency-broadly
An Early Trend - Organizations are looking to own their destiny by structuring financing and pricing their own risk
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6. Why do analytics matter?
Finance is leading the way
For a Treasury - to alter decisions
Desire to make better/smarter and substantiate decisions
ROI view across all types of insurable risk
Drive better financial outcomes
For Risk Management - to elevate status
Engage C-suite in concise, financial language
Potential to elevate role into a strategic one
Ability to engage on traditionally non-insurance topics such as risk tolerance
For Brokers/Risk Advisors – to deliver better client service
Adds efficiency
Apply big data
Risk first solution second
Answer basic questions
What’s the ROI on my insurance spend?
How much risk am I subject too?
What are my risk drivers?
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7. Delivery of Analytics at Scale – Empowering our Brokers and Clients
Client Collaboration Using Technology
Visualization of Data and Risk
Real Time Customization
Analytical Content Ingrained into Service Delivery
Concise and Impactful Insight
Quantify and Convey Risk Drivers
Proactive Fact Based Decision Support
Collaborative Build of Longer Term Risk Strategy
Deploy Big Data
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8. Core Analytics Tool Suite Scalable Analytics to Protect Value and Reduce Uncertainty
Property and Marine
Casualty
Dynamic Casualty Forecast:- US Workers’ Compensation
US Auto Liability
US General Liability
UK Employer Liability
UK Motor Liability
Global Public Liability
Canadian Auto Liability
European Auto Liability
Collateral Quantified
Workers’ Compensation Diagnostic
Global Peril Diagnostic
Marine Quantified
Property Quantified (April 2018)
Enhancing client engagement across all major risk areas creating a cultural shift
FINEX
Strategic
Cyber Quantified   
D&O Quantified
Employment Practices Quantified
Risk Tolerance Clarified
Dynamic TCOR
Captive Quantified (March 2018)
Bold represents models currently deployed, others in development
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9. Analytics at Work Gain Holistic Insight
WillisTowersWatson.com/coreanalytics
See the impact of retained loss on your KPIs
Assess Vulnerability
Identify Loss Drivers
Top 3 Loss Causes
Evaluate Risk Transfer Cost vs Benefit
Establish Risk Tolerance
© 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.