Telematics – A new business model

Telematics Usage based auto insurance

Much has been written about the pros and cons of using telematics… and many insurers have made a business case for implementing usage-based insurance in the auto industry. However, the challenge often ignored is how to store and analyze this explosion of data created by these activities. First of all, let’s consider the amount of data automotive telematics devices are expected to generate. Every second a telematics device will produce a data record. This data record will include information such as date, time, speed, longitude, latitude, acceleration or deceleration (g-force),…

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Beyond compliance – Added value in a Solvency II implementation

Compliance and Risk Management Insurance News

Solvency II implementation costs may shave a few cents off earnings per share, but this cost should be balanced by the benefit of a far more transparent – consistently transparent – set of reporting requirements than before. This valuable information will lead to improved economic planning and insight, and the ability to embed early-warning mechanisms. Risks exposed The structure of data is critically important to any Solvency II solution. Hence, insurance companies should start early to design a data management framework that is flexible enough to support Solvency II and…

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Finding the Golden Needle – What Big Data means to Insurers?

Insurance Technology Article: The phrase Big Data seems to have taken the technology world by storm this year. A year ago, many insurance company’s IT Directors, even CIOs were not aware of Hadoop; now it is becoming an industry standard at many carriers. But in reality big data is not new to the insurance industry. It continues a trend that probably started back in the 1970’s with the invention of policy administration solutions and other IT systems. What has changed in recent years is the velocity of data flow, the…

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S&P downgrades Californian insurers while Commissioner Jones insists the companies are financially sound

Rating agency Standard & Poor’s seems to be in the grips of a downgrading frenzy as the agency downgrades the credit ratings of five of California largest insurance companies. The move comes on the heels of the agency’s downgrading of the federal government’s credit rating, which sparked controversy throughout the country and drove many businesses to re-evaluate their place in the commercial market. S&P downgrade of the state’s insurers could have major implications for the industry, but Insurance Commissioner Dave Jones says that there should be no doubt about the…

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More small businesses are offering health care coverage

There has been a recent increase in group health insurance plans offered by small business owners. This is due in part from the introduction of federal tax credit enticement from last year’s health care reform. In the fourth quarter of 2010, Blue Cross and Blue Shield of Florida Inc. saw a five to six percent increase in group health insurance and this trend is continuing in 2011. BCBS senior director of external communication, John Herbkersman, agrees that there is quite a bit of interest in coverage options from small businesses.…

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Industry leader fights fraudulent claims with new technology based tools

Claims typically account for up to 80% of an insurance company’s costs, making the way the claims process is managed vital to a company’s profitability. This is particularly true in times of economic uncertainty, with growing pressures to settle claims faster with transparent fairness – but with fewer resources.  Unfortunately, the claims process is typically time-consuming and labor-intensive, involving multiple systems, outdated technology and distributed operational units. The resulting inconsistent processes and inefficient data management sap resources and slow turnaround times, which leads to negative customer experiences.  Predictive insurance claims…

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