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Giving the insurance industry assurances about data

IXUP’s solution advances data analytics in a highly competitive industry

Product design and pricing in the insurance industry require extraordinarily technical data analytics to calculate a multitude of variables, such as risk, demand, projections about unforeseen events, like floods, and the incidence of claims.

It’s a very complex task that relies heavily on multiple data inputs to determine the appropriate level of cover. These can range 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 ‘perils’ – also known as ‘acts of God’, among many others.

Some data is open source – freely available without constraint.

Other data is more difficult to acquire and use – such as personally identifiable information (PII) – due to legal limitations related to data privacy. Given the nature of the information needed by insurers, sharing that data to perform complex analytics may fall foul of regulators and customers alike.

In a fiercely competitive industry, it’s essential to deliver finely tuned and highly personalised products at the right price, particularly given the customer perception of insurance as a grudge purchase. And this means the data inputs need to be varied, granular, accurate and not stripped of the very attributes that make it valuable in order to meet privacy and security requirements. As the industry moves more towards the personal lines insurance model, advanced analytics on this type of rich data is becoming a business requirement.

IXUP tackles data risks

The IXUP solution ensures that insurance companies can meet their needs in terms of obtaining quality data while still complying with regulation around data security and privacy. Insurers can perform advanced analytics on multiple streams of data from disparate sources, using an encrypted software platform that encodes each cell of information. Analysis is then performed at the encrypted rather than the data level.

Taking the grudge out of insurance

By ensuring that ciphers are analysed rather than the data itself – and the key to the encryption always remains in the hands of the data owner – there is no need to remove any personally identifiable information. At no stage is sensitive information seen, shared or revealed. As such, the IXUP solution meets increasingly stringent requirements around privacy and security. Just as important, advanced analytics can be performed simultaneously on multiple rich data streams to deliver granular and refined insights. It is these insights that allow insurance companies to manufacture, price and underwrite highly tailored products across the spectrum – from motor and household to commercial and SMEs.

There are other benefits too. Risk can be calculated more accurately, making it easier for companies to manage their claims ratios. Fraud can also be more easily detected when data is not de-identified.

Products designed with great specificity are less susceptible to competitive pricing pressures, which means better revenues. And policyholders can find cover that suits their individual needs because companies know how to calculate and price risk better.

Insurance companies that are empowered by this level of data analytics have an edge over competitors who have to de-identify information in order to use it, and as a result, get a less optimal outcome.

Secure Data. Trusted Collaboration.

Your data is only part of a bigger story. Imagine being able to enrich it. To uncover hidden insights. To empower innovation, productivity and customer experiences. With IXUP you can do this – without ever putting your data at risk. Realise the promise of true data collaboration.

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