Product design and pricing in the insurance industry require extraordinarily technical data analytics to calculate a multitude of variables – risk, demand, history and patterns of claims, as well as projections about future trends and the incidence of unforeseen events, like floods.
This complex task relies heavily on multiple data inputs to conduct sophisticated analytics to deliver the right actuarial outcomes. This data ranges from the most basic demographics – for instance, age and gender – to highly specific information about individual consumers and their behaviour, traffic statistics, weather patterns and other peril data, including ‘acts of God’ such as flood or hailstorms.
While some data is open source – freely available without constraint – other data is more difficult to acquire and use. A typical example is personally identifiable information (PII), which is tightly governed by legal protections on data privacy.
And this can pose a challenge for an industry that depends on granular information to determine the appropriate level of pricing and the most competitive products.
IXUP’s software platform ensures that insurers can secure the detailed insights they need to fine-tune their actuarial computations by analysing multiple data sources in a compliant, governed software environment which removes the risk of data breach and misuse. Our platform connects multiple data sources in a secure, compliant environment that protects customer information. At the same time, our unique technology affords insurers and other organisations complete control over their data.
As the highly competitive insurance industry moves more towards tailoring product for individual consumers and streamlining its purchase, secure and advanced analytics on rich data is becoming a business requirement.