1. Information Builders Insurance & Insurance Practice Executive Overview October 2011

2. Agenda  Marketplace Drivers  IB Vision for Insurance  IB Solution Portfolio for Insurance  How can IB help turn data into a lower combined ratio  Next Steps for Information Builders? Copyright 2011, Information Builders. Slide 2

3. The Five Pillars ChallengeOperating MetricsBusiness Objective The Tide is not Rising  Net New Policies  Client Lifetime Value  Avoid attrition, protect client equity  Cross-sell, optimize investments Customer Behavior  Customer Satisfaction  Retention Rate  Adjust to new buying criteria Competitive Threats  Market Segment Share  Unit Premiums  Leverage sources of differentiation  Foster customer loyalty Regulatory Changes  Processes Documented  Compliance Cost  Rules change revenue, cost drivers  Explosion of redesigns Risk Management  Exception to Policy  Open Audit Points  Manage high stakes risks more robustly

4. Copyright 2007, Information Builders. Slide 4 Changing Appetite for Insurance IT Business Priorities Business Analytics is #2

5. Copyright 2007, Information Builders. Slide 5 Changing Appetite for Insurance IT 2011 IT Project Priorities

6. Disruptive insurers driving market change Information key to a profitable insurer “ In this third entry in the Journey series, we single out IT as the fourth foundational pillar in recognition of it fundamental role in helping companies differentiate themselves and win in the marketplace” McKinsey & Co Journey III: The Next Frontier in P&C Insurance (2010) “ Information is the key product generated by Insurance organizations seeking sustainable competitive advantage.” Mark Gorman Insurance Principal, Tower Group (2010)

7. Enhancing Business Performance along the Analytic Journey IntelligenceInformationData Predictive Analytics Diagnostics Dashboard Cleansed Data What happened? How many, how often, where? Where exactly is the problem? What needs attention? Why is this happening? What if these trends continue? What will happen next? What’s the best that can happen? Standard Reports Ad Hoc Reports Query Drill Down Alerts Statistical Analysis Forecasting Optimization Business Impact & Competitive Advantage IntelligenceInformationData Predictive Modelling High What ‘s the best that can happen? Low Copyright (c) 2011 Fractal Analytics

8. Preconfigured Insurance Data Base IB Solution Portfolio for Insurance Copyright 2009, Information Builders. Slide 8 Insured Experience Distribution & Underwriting Risk Management Finance & Operations Single View of the Business Dashboard Analytics Reporting Mobile Search Visualization Integration of Systems, Data & Data Quality Strategy & Roadmap

9. IB Solution Portfolio for Insurance Insured Experience Copyright 2009, Information Builders. Slide 9 Insured Experience Delivery of Customer Experience Customer Intelligence Predictive: Customer Life Time Value

10. Predictive Analytics Inventory Lifecycle Marketing  Acquisitions  Segmentation  Campaign Optimization  Up-sell  Customer Lifetime Value  Cross-sell  Loyalty & Retention  Revenue Enhancement Consumer Behavior Risk Management  Underwriting  Credit Scoring  Behavior Scoring  Bankruptcy  Collections/Recovery  Pre-Payment  Risk-Based Pricing  Loss Forecasting  Portfolio Valuation  Stress Testing  Value/Dollars at-Risk  Segmentation  Compliance Validations

11. IB Solution Portfolio for Insurance Distribution & Underwriting Copyright 2009, Information Builders. Slide 11 Distribution & Underwriting Distribution Commissions Underwriting & Marketing Copyright 2007, Information Builders. Slide 11 Predictive: Expected Agency Profitability In Action: IPF Distribution KPI

12. IB Solution Portfolio for Insurance Risk Management Copyright 2009, Information Builders. Slide 12 Risk Management Pricing Reserving ERM Claims Fraud Copyright 2007, Information Builders. Slide 12 Predictive:Risk InspectionRisk Inspection Price Impact Forecaster In Action:IPF Key Risk ObjectivesIPF Key Risk Objectives IPF Claims Stratification

13. IB Solution Portfolio for Insurance Finance & Operations Copyright 2009, Information Builders. Slide 13 Copyright 2007, Information Builders. Slide 13 In Action: IPF Insurance Dashboard Finance & Operations Finance Performance Expense Mgmt Finance Performance Expense Mgmt Operations IT Regulatory HR Operations IT Regulatory HR

14. IB Solution Portfolio for Insurance Single View of the Business In Action: Dashboards Strategy Map 3 Insurers Speak: Webinar

15. Copyright 2009, Information Builders. Slide 15 IB Solution Portfolio for Insurance Preconfigured Insurance Data Base In Action:Executive KPI mart Session: Structuring Insurance Data to make more money

16. Business Driven High Skills Short Independent Copyright 2009, Information Builders. Slide 16 IB Solution Portfolio for Insurance Strategic Roadmap for Business Analytics Michigan Risk Management

17. Predictive Example: Customer Life Time Value (CLTV) 17 CLTV is an essential tool that helps business develop strategies to extract incremental value from their customer Components of CLTV CLTV Future Cross-Sell Expected Profits Current Revenue Life Expectancy CLTV isn’t just to measure your customer’s value but to enhance it 17 Confidential | Copyright © Fractal 2009 Brand Consideration Moment of Purchase Develop Relationship Deepen Relationship Return customer

18. TM Confidential | Copyright © Fractal 2009 Why does agency scorecard matter? 18 Confidential | Copyright © Fractal 2009 All agents Agents with high loss ratios Bad agents with high loss ratios Good agents with high loss ratios Agents with low loss ratios Bad agents with low loss ratios Good agents with low loss ratios Simplistic approach can penalize unlucky good agents and reward lucky bad agents This can be avoided by using the agency scorecard Bad agents can be selectively penalized and good agents can be selectively rewarded This results in healthy growth of the book Normal approach Agency segmentation Do nothing Return Distribution

19. Copyright 2011, Information Builders. Slide 19 Return Distribution

20. TM Confidential | Copyright © Fractal 2009 Determined the Strategy to Reduce MVR Expense by ~30% with least impact C.R. Impact Conduct a cost benefit analysis and identify to Savings from Motor Vehicle Record( MVR) ordering Implemented MVR model that enable client reduce MVR budget by 30% Achieved expected % benefit. $ benefit lower due to slow-down in economy The Challenge The Results ORDERED NOT ORDERED Deciles of Cost Benefit Realized $ Predicted BENEFIT OF MVR ORDERING Expected and Actual Savings from MVR Ordering Program (in $MM) $MM 20 Return Risk

21. TM Confidential | Copyright © Fractal 2009 Price Impact Forecaster Inability to Forecast  Have to wait for 3- 6 months to measure impact of price change  Cannot adjust monthly sales target a-priori to factor in price change  Cannot avoid intentionally writing business at lower margins to meet revenue goals Today’s Pricing Process has 3 main GAPS Our product plugs these gaps and goes beyond cost plus pricing Measures customer Risk Helps in segmenting customers based on risk attributes Measures customers’ reaction to price changes Helps realize different profit margins depending on price sensitivity Index for Customer Loyalty PRICE SENSITIVITY Loyalty LOSS MODELING Cost of doing business NEXT GEN PRICING LIFETIME VALUE Loyalty Inability to iterate  Cannot determine the best scenario out of the100+ price change available scenarios  Product Head, Actuaries & Sales have different recommendation on what will work. Who is right? Suboptimal operations Mgmt  Cannot avoid spending a lot of time in pricing decision due to the subjectivity involved  Results in spending less time managing field operations / sales force / customer needs 21 Return Risk

22. Areas of Risk Rolled up Risk indicators Risk Event Alerts Favorites Graph Drill to analysis Drill to Cause/Effect 22

23. Overall Risk Strategy Drill to KRIs, Plans or Aligned Process White ellipse is Consequence 23 Return Risk

24. Processes aligned with specific Risk 24 Return Risk

25. ` 25 Return Risk

26. Evolve Loss Development with a click. Right now. 26 Return Risk

27. Insurance Dashboard to drive your business strategy 27 Return 1 View