0. Looking Beyond Insurance – Analytics and Advanced Analytics
Ben Fidlow, Global Head of Core Analytics, Willis Group

1. USING ANALYTICS What to Take Away?
How to Identify Ways to Use Analytics to Measure Risk
Understand How to Identify Opportunities and Drive Results Through Effective Communication

2. USING ANALYTICS Current Dynamics in Risk
Global Client Council Feedback Analytics Value Add – Driving Better Decisions Analytics Strategy

3. USING ANALYTICS Observations Implication on Willis Strategy
Capital – changes in source and usage
Core Analytics
Customized Analytical & Consulting Decisions
Demand for greater transparency across the risk landscape
Alternative Risk Finance
Increased board level and stakeholder focus around protecting brand
Complex Claims and Forensic Capabilities
Globalization of Risk Engineering & Claims
Demand for broader use of data and analytics to support decision making
Risk Technology
Increasingly active regulatory and legislative regimes
Integrated Workers Compensation Solutions

4. USING AnalyticS Observations Implication on Willis Strategy
Capital – changes in source and usage
Core Analytics
Customized Analytical & Consulting Decisions
Demand for greater transparency across the risk landscape
Alternative Risk Finance
Increased board level and stakeholder focus around protecting brand
Complex Claims and Forensic Capabilities
Globalization of Risk Engineering & Claims
Demand for broader use of data and analytics to support decision making
Risk Technology
Increasingly active regulatory and legislative regimes
Integrated Workers Compensation Solutions

5. USING AnalyticS “How do you make decisions without analytics?”
Current Client View on Analytics (From Global Client Council)
“Proper delivery of impactful data to Risk Management will elevate the thinking process”
“Use analytics to link different risks with the focus on impact”
“Analytics take the emotion out of decisions”
“How do you make decisions without analytics?”
Key Takeaway: All Respondents Value Analytics and Want More

6. USING ANalytics Current Utilization of Analytics Client Feedback
Benchmarking
Score Cards & Trending
Loss Control
Allocations
Very Little Use of Advanced Analytics
Needs:
External Data Support
Better Transparency
Risk Evaluation for Business Leaders
Lots of room for improvement
Quick Fixes – Scalable Tools, Dissemination of Risk Data
Longer Term – Collaboration, Strategy and Risk Technology
Client Feedback
Observations
Next Steps

7. USING AnalyticS Support Strategic Business Goals Client Feedback
“Drive Cost Improvement”
“Build Cost of Risk into Performance Metrics”
“Communicate so people understand the risks they are taking”
“Justification Required for Capital Expenditures”
Diverse responses as to the level of engagement.
All respondents looking to improve in this area.
Strategy
Customization
Client Feedback
Observations
Next Steps

8. USING AnalyticS Measurement of Insurance Value Client Feedback
“Needed for Board Due Diligence”
“Need to Articulate the Financial Benefit”
“Validation of expense is critical if you want to be my brokerage partner”
Diverse responses as whether ROI is needed.
All would value a better Cost Benefit analysis.
Connect Risk Tolerance with Prospective Loss Modeling
Communicate Impacts in Language Meaningful to CFO
Client Feedback
Observations
Next Steps

9. Ranking from 1 to 10 (10 is Most Important)
USING AnalyticS
The Value Created By Analytics Utilization
Ranking from 1 to 10 (10 is Most Important)
All applications valued evenly on average
Little disagreement regarding better analytics for risk transfer and risk mitigation
Does this view hold for Real Estate and Construction?
Perhaps business alignment view will improve if we do the “easy stuff’ right
Standard
Average
Deviation
Insurance Buying
7.8
1.3
Risk Mitigation
7.9
1.4
Captive Evaluation
2.7
Broader Risk (i.e. ERM)
2.2
RM Alignment w Business
6.8
2.1

10. Using Analytics – Creating a Tangible Value Add
Measure Risk
Communicate Risk
Incorporate Risk into Decision Making
Risk Tolerance
Impact on Financials
Create Risk Metrics
Evaluate Options
Risk vs Return
Identify Opportunities

11. Using Analytics – Enhanced Decision Making
Better Utilization of Capital and Resources
Efficiency of Spend
Allocations Leading to Better Business Valuation
Proactive Business Decisions
Risk Mitigation
Incorporation of Risk Metrics
Longer Term View of Risk and Return
Align Business and Risk Strategy

12. USING ANalytics
Adding Value by Driving Better Decisions – Low Hanging Fruit
Understand Risk – Quantification and Communication
Value Impact /Risk Tolerance– Institutionalize Risk Metrics & Value Volatility
Make Tangible - Insurance Efficiency analyses by layer
Multi peril risk assessment for property
Dynamic more actuarially sound and impactful analytics for casualty exposures
Diagnostic analytical tools for workers compensation
Upgrade C-Suite Decision Tools decision making analytics for D&O and Cyber
D&O and Cyber
International D&O

13. Using Analytics – Modeling Examples