For risk managers, data has become a part of everyday life. However, when faced with the volume of data that is now available, it can be difficult to know how to turn this into actionable intelligence.
Kristi McFarlin, Ventiv’s Vice President, Analytics, was recently the featured expert in an insightful article on the topic of artificial intelligence and working more effectively with data: ‘7 Ways to Leverage Artificial Intelligence Now to Impact Risk Management and Avoid Drowning In Data’. She says “The sheer volume of data to churn through is overwhelming. Where do you start your exploration journey? Finding a starting point is one of the biggest data analysis challenges for risk managers.”
Now I want to take what she says one step further and explore specifically how advanced analytics can help manage the vast quantities of data that risk managers of today are facing—and identify where you should start your data discovery journey.
IDC predicts that by 2025, the world’s collective data storage will reach 175 zettabytes, up from 33 zettabytes in 2018 (one zettabyte equals a billion terabytes, or a trillion gigabytes). Moreover, nearly 30 percent of that data will need real-time processing. How much new data do you imagine your company will be creating (and how much third-party data will you need to process) in the next six years?
We already know that data-driven organizations make quicker and better business decisions than their peers. And we know that data-driven risk management programs provide risk managers with critical business insights, which can essentially reduce claims frequency and severity. In fact, according to a 2013 study by McKinsey, companies that focus on data are:
- 23 times more likely to outperform competitors in acquiring new users, and
- 19 times more likely to achieve above-average profitability.
Using advanced analytics to handle the increasing volume of data
Advanced risk analytics software, through the power of artificial intelligence, can take big, seemingly random data sets, organize them and find a starting point for data discovery.
In the Risk & Insurance article, Kristi McFarlin highlighted the need for accessibility in AI platforms. Advanced analytics can make data science accessible to the whole risk management team. That is made possible when you have a system that allows you to build queries and ask questions using plain language, rather than being required to understand technical jargon.
The benefit is clearly seen when users with less technical knowledge can easily ask questions and receive answers, essentially interrogating complex data sets. This will then be presented in a format that they can understand—so the team can analyze more data with fewer resources, and in turn create actionable insights and solid recommendations to the C-suite.
Taking that data and turning it into actionable insights
With AI, outcomes from queries are fact-based and can identify trends that are not flawed by bias from personal expectation. If the insights found are unexpected, it can highlight new thinking, whether that is a risk or claims trend. This provides a good basis for building a reliable strategy.
Advanced analytics focuses on two key areas: predictive and prescriptive outcomes.
- Automated predictive analytics – finds correlations that predict actionable insights, such as what factors are likely to influence the cost of a claim (drilling down further into data to find relationships that you might otherwise have missed).
- Prescriptive analytics – can help identify how to mitigate risks—and potentially prevent claims, injuries, etc., from occurring. This will help risk managers present a case to the C-suite to invest in targeted risk management initiatives.
Ventiv Analytics gives you the tools to answer questions and drive your business forward
Where traditionally analytics was handled by dedicated specialists, applying artificial intelligence through advanced risk management analytics software puts the power in the hands of risk and insurance managers.
Ventiv’s advanced analytics platforms provide the tools necessary for risk managers to take advantage of this. The combination of accessible data analysis, true real-time analytics, and powerful reporting functions make it possible to present actionable insights that can make a real difference.
To learn more about Ventiv Analytics and how we can help your organization implement AI contact us.
David Greiff is senior vice president, Corporate Sales, with Ventiv Technology. Connect with Dave on LinkedIn.
