Pool Data: Best Practices and Practical Considerations RYAN DRAUGHN, DIRECTOR OF INFORMATION TECHNOLOGY NLC MUTUAL INSURANCE COMPANY 1 Do you have the Moneyball Mindset at your pool? 2 Agenda Leveraging Data and Technology Best Practices Changing how decisions are made Driving operational efficiencies Giving you a competitive edge Technology trends & new advances that is making it all possible How consumerization of tech is driving the industry Cloud computing and Data Warehousing Data Transformation Technology and Massively Parallel Processing (MPP) Intuitive Business Intelligence (BI) tools and software Practical Considerations Utilizing information to take action Knowledge and managing expectations Generational workforce changing Opportunities inside your company and to your customers Security & Governance Concerns Examples and Demonstration 3 1
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https://powerbi.microsoft.com/en-us/partner-showcase/bistech-safety-risk-and-compliance/ 7 https://powerbi.microsoft.com/en-us/partner-showcase/bistech-safety-risk-and-compliance/ 8 Leveraging Data and Technology Best Practices Changing how decisions are made Making data available directly to the decision makers or consumers of data. Providing what if? scenarios and an iterative process instead of static reporting. Driving operational efficiencies Utilizing geocoding to graphically display information. Modern tools allow non-technical staff to utilize BI. Helps eliminate IT bottlenecks and strain. Quicker and more direct analysis. Removes need to translate what is needed. Giving you a competitive edge Insights into data you have on your insureds is extremely powerful. Pricing on actual data versus industry benchmarks. 9 3
10 11 Technology Trends & New advances that is making it all possible How consumerization of tech is driving the industry Internet of Things (IOT), Telematics, etc. Cloud computing and Data Warehousing Data Aggregation and Transformation Technologies Big data, Distributed Computing, Massively Parallel Processing (MPP) Intuitive Business Intelligence (BI) tools and software 12 4
The network of physical objects that contain embedded technology to communicate and interact with their internal states or the external environment. Source: Gartner IT Glossary http://www.gartner.com/it-glossary/internet-of-things/ Tracking Driver Movements via GPS/Blackbox Your location How long you have been driving for How fast you accelerate How harsh or smooth your braking is Your cornering https://www.confused.com/car-insurance/black-box/telematics-explained 15 5
Changing how decisions are made Carriers may no longer need to compete on price; they instead may be able to assess the risk of individual customers based on their actual behaviors Additionally, commercial insurance increasingly will be able to focus on providing customized, flexible products and value-added services that involve working with the clients to proactively avoid or reduce losses and manage risks. PriceWaterhouseCoopers 16 IoT in Public Safety Law enforcement agencies are investing in IoT technologies that act as force multipliers Gunshot Detection Camera Systems License Plate Readers Smart Weapons / Holsters Drones IOT Considerations for Pools Data Storage Massive amounts of information collected How are you equipped to store? Data Security Information coming from non-traditional means Who will have access? How will you protect any sensitive information? Data Protection Essential information may now become part of business operations How will you ensure it is categorized and prioritized in your Disaster Recovery plans. 6
The Cloud plays a big role Provide massive economies of scale to drive down data storage costs. Many have developed PRIVATE cloud offerings that: Enable data to not be co-mingled with other organizations. Meets individual customer demands for retrieval practices. Adheres to specialized compliance or regulatory demands (PII,HIPAA,PCI) Ensure storage inside of continental US. Allow for specialized service providers to develop software platforms built on their data storage foundation. Public Clouds A public cloud is one in which the services and infrastructure are provided off-site over the Internet. These clouds offer the greatest level of efficiency in shared resources; however, they are also more vulnerable than private clouds. Ex. Gmail, Dropbox, SaaS Applications Source: http://www.dummies.com/programming/networking/comparing-public-private-and-hybrid-cloud-computing-options/ Private Clouds A private cloud is one in which the services and infrastructure are maintained on a private network. These clouds offer the greatest level of security and control, but they require the company to still purchase and maintain all the software and infrastructure, which reduces the cost savings. Good when data privacy and security are crucial. Source: http://www.dummies.com/programming/networking/comparing-public-private-and-hybrid-cloud-computing-options/ 7
Hybrid Clouds A hybrid cloud includes a variety of public and private options with multiple providers. By spreading things out over a hybrid cloud, you keep each aspect at your business in the most efficient environment possible. The downside is that you have to keep track of multiple different security platforms and ensure that all aspects of your business can communicate with each other. Your company wants to use a SaaS application but is concerned about security. Your SaaS vendor can create a private cloud just for your company inside their firewall. Source: http://www.dummies.com/programming/networking/comparing-public-private-and-hybrid-cloud-computing-options/ Landscape in 2018: Business usage of SaaS, Hosted and Cloud Solutions is commonplace Google Docs Office365 Azure/Onedrive Amazon Web Services Major Vendors will continue to push customers to their SaaS offerings Claims and Policy Management Application Vendors are no exception 8
Intersection of Big Data and Cloud As datasets grow, they need to be managed and stored somewhere. Your data should be: Economical Meet Compliancy Regulations Prevent Unauthorized Access Accessible for Fast Retrieval/Backup Optimized for Analytics The evolution of cloud data storage and online big data tools now provide a mechanism to capitalize on our valued data. 25 Beyond the Cloud Many industry experts are predicting machine learning, serverless environments, and a focus on data will be the future of cloud computing over the next several years. Eric Schmidt, CEO of Google states, the amount of innovation we will see in the next five years will exceed all the innovation we ve seen in all prior years. Schmidt went on to make a few more predictions: The platform is not the end, it is the bottom. Machine learning is on top and will be the technology that will drive the transformation. NoOps will become mainstream. Serverless architectures will be the next wave of computing. http://www.forbes.com/sites/mikekavis/2016/03/25/google-provides-a-glimpse-into-the-future-of-cloud-computing/#5b2753f5529f Practical Considerations Utilizing information to take action Knowledge and managing expectations Generational workforce changing Opportunities inside your company and to your customers Data Security & Privacy Concerns Regulations and Model Laws Having a True Data Governance Model 27 9
28 Data Analytics & Reporting Spectrum 29 Why it Matters Drive EFFICIENCIES to better serve your members Marketing to Members Pricing New Products/Coverages Claims Management Geographical Analysis Machine Learning Internet of Things Interactions Social Media Claim Notes 30 10
Potential Benefits & Uses of Data Pools need it to be successful and relevant to their members Need it to continue to be successful and relevant to your customers Allows for ability to make better decisions Board and Staff The industry is moving (or has moved) in this direction we need to keep up! Technology is evolving (constantly and quickly) We can t even begin to imagine the possibilities of what might be available to us in even 3-5 years. New and Innovative way to spot trends and apply strategic measures 31 Practical Governance Models for Success Executive Sponsors (President & Executives) Accountability in driving business results Help Identify Initiatives and Sharing Insights Data Providers/Facilitators (Staff members/it) Establishing the upload mechanism of data Awareness and understanding how the data is organized Major Domo (Department Entusiasts/Power Users/Evangelists) Primary key to fully leveraging BI Tools. They serve as trusted resource in analytical development, data aggregations, and communicating to boards or other groups as needed. 33 11
Examples and Case Studies Overview of NLC Mutual Data Initiative Insights and Lessons Learned Changing the Conversation by visualizing your data Collaboration and Partnerships Driving ACTION not just supplying charts/reports Current and Immediate Future Artificial Intelligence Deep Learning Predictive Modeling 34 35 36 12
VLCT Loss Cause Word Cloud Prioritized by Claim Count 669 23 37 VLCT Loss Cause Word Cloud Prioritized by Loss Amount $1,781,747 $4,451,102 $8,334,885 38 How it Works NLC-Mutual Data Warehouse Aggregated Dataset NORMALIZED DATA Reports/Analytics NLC-Mutual Team Access View Aggregated Data Reports/Analytics ETL Process: Data is Extracted, Transformed and Loaded per particular Analytical Need Sovereign State A Sovereign State B Sovereign State C Migrated Data Migrated Data Migrated Data Pool Staff: Ability to Analyze/Visualize own data Sovereign State A Sovereign State B Sovereign State C MS SQL Server Documents Oracle DB Documents Mainframe Documents Backup Backup Copy Backup Backup Copy Full Backup 13
Normalizing Data to a Common Schema 40 Demonstration 41 14