Big Data and Regulation in the Insurance Industry

Slides:



Advertisements
Similar presentations
Improving the Odds of Success for Insurance Exchange(s) Jon Kingsdale, Ph.D. Executive Director, Mass. Health Connector For the NHPF & AHR January 8, 2010.
Advertisements

Insurance Premium Risk, Competition and the Insurance Cycle George Maher.
1 U. S. Risk-Based Capital Requirements and Their Context Alfred W. Gross Virginia Commissioner of Insurance National Association of Insurance Commissioners.
Integrated Treatment of Enterprise-Wide Risks Rajeev M. Dutt, FSA, FCIA Consulting Actuary ERM Symposium CS 7D - April 27, 2004.
Health Insurance Exchanges: Policy Issues Timothy Stoltzfus Jost Washington and Lee University.
Fall 2008 Version Professor Dan C. Jones FINA 4355 Class Problem.
Assignment Six Risk Control and Premium Auditing.
“This workforce solution was funded by a grant awarded under Workforce Innovation in Regional Economic Development (WIRED) as implemented by the U.S. Department.
Insurance and Pension Fund Operations
NAPA Property & Casualty Insurance Plans.  What Is It? - Property and casualty business insurance…  Protects a person or business against loss or the.
Insurance Companies Copyright 2014 by Diane Scott Docking1.
Copyright © 2014 by the American Academy of Actuaries. All Rights Reserved. Michael E. Angelina, MAAA, ACAS Price Optimization Casualty Actuarial & Statistical.
Assignment Four Underwriting. Definitions Underwriting – The process of selecting policyholders by recognizing and evaluation hazards, establishing prices.
v The Framework of Insurance Regulation Rex Bagwell Business Development Manager Insurance Productivity Services Kurt Jackson EVP of Sales GhostDraft.
Private Health Insurance University of New South Wales 13 October 2003.
World Bank Group FIAR 2010, Sinania PAID: Reconciling Affordability and Financial Sustainability Requirements May 25, 2010.
Unit Linked Products Yannis Vasilatos November 2013.
Assignment Three Insurance Marketing and Distribution.
HANDLING FAILURES AND SAFETY NETS Edward Forshaw Manager, Insurance International Issues Prudential Standards Division.
Current Issues in the Captive Marketplace and Trends for the Future Presented by Kate Westover Vice President, Innovative Captive Strategies Barbados International.
The Role of the Actuary in a General Insurance Company Yangon, Myanmar 14 July 2014 Scott Yen.
Sapient Insurance Partners. Overview & Services We have almost four decades of combined experience in the property & casualty insurance and reinsurance.
Insurance Companies Chapter 2
Demand Modeling to Price Optimization
Extremely Multi-Dimensional Profitability Analysis –Rick Baff, Pinpoint Solutions LLC.
State Regulation of Life Insurers: Implications for Economic Efficiency and Financial Strength
Israel’s Capital Market Reform Bank of Israel and the IMF Prof. Dan Galai Sigma PCM and the Hebrew University Feb
1 Practical ERM Midwestern Actuarial Forum Fall 2005 Meeting Chris Suchar, FCAS.
Florida Property Insurance Markets Economic and Financial Update Robert P. Hartwig, Ph.D., CPCU, President Insurance Information Institute  110 William.
Texas Health Care Reform Coverage Institute September 26, 2007.
Consumer Empowerment Consumer Empowerment May 15, 2012 Presented by: Alparslan Bayraktar Commissioner Energy Market Regulatory Authority of Turkey (EPDK)
The Impact of Reinsurance on Primary Company Financials A Case Study Casualty Actuarial Society Loss Reserve Seminar Washington, D.C. September 18 – 19,
Prepared by: Richard K. Traub Traub Lieberman Straus & Shrewsberry LLP.
Market Cycle Update Personal Lines Greg Ciezadlo, FCAS, MAAA Farmers Insurance Group Casualty Actuarial Society Spring Meeting 2002 – San Diego, California.
May 18, 2004CAS Spring Meeting1 Demand Based Pricing: A Company Perspective CAS Spring Meeting May 18, 2004 Floyd M. Yager, FCAS, MAAA Allstate Insurance.
American Risk and Insurance Association Annual Meeting Jay Fishman Chairman & Chief Executive Officer The Travelers Companies, Inc. August 6, 2007.
“The Regulatory Challenge” By Dr. Bassel Hindawi Director General of The Insurance Commission of Jordan at The 42 nd Annual Seminar of the International.
RNW: All Lines Michigan vs. All Line US, 1998–2007* Avg. RNW MI: 7.2% US: 7.6% Profitability in Michigan’s property/casualty insurance markets is below.
Casualty Actuarial Society Spring Meeting May 15 – 18, 2005.
Predictive Modeling for Small Commercial Risks CAS PREDICTIVE MODELING SEMINAR Beth Fitzgerald ISO October 2006.
Indiana University SCOOP Session – Financial Opportunities September 28, 2004.
Hosted By Mike Gallagher October 2015 Risk Management And Compliance.
© English Matthews Brockman Business Planning in Personal Lines using DFA A Talk by Mike Brockman and Karl Murphy 2001 Joint GIRO/CAS Conference.
1 Reinsurance Solutions Knowledge. Experience. Performance. THE POWER OF INSIGHT. ® ACLI Reinsurance Executive Roundtable – 1/12/10 Beyond the Crisis:
for institutional investors. Insurance companies.
Sapient Insurance Partners. Overview & Services We have almost four decades of combined experience in the property & casualty insurance and reinsurance.
1 Where Is My Market? Mining Data to Find a Niche Commercial Lines Segmentation Workshop Lisa Sayegh Presentation to the CAS March 2003.
Finance 431 Risk Management and Insurance – Property Casualty Insurance Brokerage.
Company: Cincinnati Insurance Company Position: IT Governance Risk & Compliance Service Manager Location: Fairfield, OH About the Company : The Cincinnati.
DEMISTIFYING LIFE INSUANCE 25 – 27 November 2015 Lome - Togo.
Geospatial Advances for Pricing Commercial Fire, Theft & Vandalism Location, Inc.
The Indication - Is That Your Final Answer?
1 St. Louis RIMS Casualty Market Update Jim Gloriod Resident Managing Director Aon Risk Services, Inc. February 10, 2010.
Purposeful Transparency — Another Reason To Partner With Warrantech
Regional Reinsurance Pooling: experiences in The Americas ICP 13: Reinsurance and Other Forms of Risk Transfer. Mike Kreidler Washington State Insurance.
Negative underwriting loss turning into positive profit — Explore the role of investment income for U.S. Property and Casualty insurers Shuang Yang Department.
The Financial Services Industry: Insurance Companies
Developing life annuity products in Africa
Property & Casualty Profitability
Optimizing Your Regulatory Compliance Program
Want Niche Capabilities? You’ll Want A Unique Company
Want Niche Capabilities? You’ll Want A Unique Company
POWER POINT PRESENTATION ON
Israel’s Capital Market Reform Bank of Israel and the IMF
Indiana University POOP Session – Financial Opportunities
Overview of Insurance Operations
Yegnapriya Bharath Chief General Manager (Non-life)
Florida Property Insurance Markets Economic and Financial Update
Insurance Supervision Board Ministry of Treasury and Finance
A Study on the Risk-Adjusted Insurance Market Equilibrium and Regulation Coordination By Alex
Presentation transcript:

Big Data and Regulation in the Insurance Industry Lars Powell, PhD Executive Director Alabama Center for Insurance Information and Research University of Alabama

Benefits of Big Data applications

Benefits of Big Data applications Accurate prices Efficient risk-taking Telematics New rating variables

Benefits of Big Data applications Customer satisfaction Real-time monitoring Appropriate products

Benefits of Big Data applications Increasing coverage Cat models Satellite data Granular underwriting and rates

Benefits of Big Data applications Claims process Reducing fraud Link analysis, text analysis Improving accuracy Improving customer satisfaction

Benefits of Big Data applications Increasing efficiency Reducing search costs for consumers Reducing operating costs for insurers

Issues Substantial changes to regulation of insurance products Disclosure Price segmentation Disparate impact Regulatory resources

Disclosure A noble goal Can reduce efficacy of rating variables  Less accurate rates Probably a losing argument

Price segmentation Accurate prices Optimal incentives Competitive markets Does not reduce ability to pool risk Not feasible for premiums to be “too accurate”

Disparate Impact Accurate pricing only has disparate impact on high-risk policyholders

Regulatory resources Model complexity Advanced statistical methods Opacity vs. transparency State vs. Federal regulation?

Insurance markets work very well

Complaints by Category and Premium

Competition Measures Source: NAIC 2014 Competition Database Report

Average Annual Return on Net Worth by Industry: 2006 – 2015 Sources: ISO®, a Verisk business® and Fortune, as reported by Insurance Information Institute at: http://www.iii.org/publications/insurance-fact-book-2016/property-casualty-financial-data/financial-results

Thank you

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2025 SlidePlayer.com. Inc. All rights reserved.