6NovemberCIOReview's circulation is audited and certified by BPA International (Audit Pending). Copyright © 2015 Valley Media Inc. All rights reserved. Reproduction in whole or part of any text, photography or illustrations without written permission from the publisher is prohibited. The publisher assumes no responsibility for unsolicited manuscripts, photographs or illustrations. Views and opinions expressed in this publication are not necessarily those of the magazine and accordingly, no liability is assumed by the publisher thereof.NOVEMBER - 2015Mailing AddressValley Media Inc.44790 S. Grimmer Blvd Suite 202, Fremont, CA 94538T:510 230 0396, F:510-894-8405 November - 2015, Vol 03- Issue 04 Published by Valley Media Inc. To subscribe to Insurance CIO OutlookVisit www.InsuranceCIOOutlook.com Managing EditorPamela MorganEditorial StaffSalesAaron PierceAlex D'SouzaIgnatius EdwardJoe Philip Joshua Parker Mathew Jacob Merlin Thomas Tony Fernandes VisualizerStephen ThomasINSURANCE CIO OUTLOOKRichard Cogan richard.s@insuranceciooutlook.com510 556 2641EditorialPamela MorganManaging Editoreditor@Insuranceciooutlook.comIt is not long before that the policy making in insurance industry was predominantly revolved around actuaries and their use of advanced mathematics and financial theory to analyze the costs of risk. Today, the advancements in computing technology and explosive growth of digital data are pushing insurers beyond the boundaries of traditional actuarial science. Instead of relying only on the internal data about the claims histories, demographics, and physical data, the insurers are now considering the third party data sources into their risk analysis that includes behavior-based credit scores from credit bureaus and data from social media, smartphones and computers. Also, the recent release of previously inaccessible public-sector data from government statistics, including health, education, worker-safety, and energy data, through "open data" websites is playing its prominent role in insurance industry. Leveraging data analytics technologies to make sense out of this humongous internal and external data, the insurers are posing new questions and better understanding different types of risks. The use of analytics is facilitating insurers with flexible products and value-added services, greater pricing accuracy, deeper customer-relationship, and more efficient way to reduce losses and manage risks. Analytics is also enabling insurers to overcome the instances of fraudulent claims. According to Coalition Against Insurance Fraud, America's anti-fraud alliance, it is estimated that 1 in 10 and nearly $80 billion fraudulent claims are made annually in U.S. Predictive analytics can play a critical role in addressing the rising fraudulent claims. The insurance companies, at the time of policy underwriting, can analyze voluminous data to detect fraud-likely applicant. Also, real-time monitoring, through social media and other digital channels can provide greater insights throughout the claim cycle. Big data analytics is not just about detecting the fraudulent claims but also about helping legitimate claims to be processed with greater speed and efficiency. Despites its inherent benefits, the adoption of big data by insurers is facing significant challenges. Partly, it is because of the shortage of solution providers possessing data analytics skills with expertise in the insurance industry. Our goal with this special edition is to help insurers discover best-of-breed big data solution providers who can unleash unforeseen insurance opportunities. This special edition blends thought-leadership from subject matter experts with real stories on what selected vendors are doing for their clients, including exclusive insights from CIOs and CXOs. Let us know what you think.Big Data: Transforming the Insurance Landscape Pamela Morgan
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