Is analytics the game changer and golden ticket for insurance organizations? Presented by: Margaret Resce Milkint Managing Partner
Is analytics the game changer and golden ticket for insurance
organizations?
Presented by: Margaret Resce MilkintManaging Partner
“Analytics is a game-changer for insurers looking to increase competitive advantage.”
-Innovation Insurer
State of the Industry
Unemployment-to-Job Ratio
Source: Statistics Canada
0%
2%
4%
6%
8%
Insurance & Related Overall
Ratio of Unemployed Individuals to Open Job Positions
5.5% Overall
1.0% Insurance
Recruiting Difficulty
Source: The Jacobson Group and Ward Group, Semi-Annual Insurance Labor Outlook Study, January 2015
Technology, actuarial,
executives, analytics and
underwriting are the top five most
difficult functions to recruit for in the U.S.
0 2 4 6 8 10
Operations
Accounting
Claims
Compliance
Sales/Marketing
Product Management
Underwriting
Underwriting-Reinsurers
Analytics
Executives
Technology
Actuarial
January 2015
U.S. Staffing Plans
Source: The Jacobson Group and Ward Group, Semi-Annual Insurance Labor Outlook Study, January 2015
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Jan-15 Jan-14 Jan-13
Most in Demand
Most Likely
Least Likely
Least in Demand
Growth of Analytics
Source: Marsh, EY
U.S. vs. Canadian Analytics Trends
Despite a slight lag in the initial introduction of analytics trends in the Canadian insurance industry, the changes currently being seen in
the U.S. are being mirrored in Canada.
These trends include:• Digital as a key driver
of market-share growth• Need for out-of-
industry talent• Improvement of data
analytics capabilities
Source: Gartner; RCR Wireless News
Big data and analytics jobs are forecasted to increase 92% by 2017.
New roles include:
• Chief Analytics Officer
• Digital Analytics Analyst• Marketing Analytics
Officer
• Analytics Scientist
• Director of Analytics• Data Engineer/
Data Scientist
Source: Kaizen Analytics
Where will analytics “sit” within an organization?
Options include:
• Information Technology
• Finance
• Actuarial
• Marketing Best Practice: Central Analytics Team
• Supports• Educates• Evangelizes
Source: IBM
Global big data and analytics spending is expected to more than double by 2016.
$27 Billion
$55 Billion
Source: Strategy Meets Action
25% of insurers are now investing inbig data and analytics.
Source: Canadian Underwriter
Within the Canadian insurance industry, carriers who use data effectively are seeing
gains. Analytics is now an operationaland competitive necessity.
Analytics Demand
Analytics Talent
By the end of this year, the U.S. could see a
shortfall of more than 260,000 analytics
professionals.
Source: Accenture
Talent Supply
Talent Demand
{-260,000}
Attracting Analytics Talent
Create a compelling story. Highlight what the industry has done using analytics and the exciting changes on the horizon.
Showcase how analytics is innovating insurance. Focus on big data and analytics as the driver of this innovation.
Reconsider the actuary as a resource and talent source.
Attracting Talent
Brand your organization with participation in technology and analytics communities.
Provide executive sponsorship to highlight your commitment to big data and analytics.
Attracting Talent
Tap into nontraditional spaces and look beyond the standard tech school graduates when recruiting for tech talent.
Out-of-Industry Talent
Focus on skills versus experience.
• Information technology
• Quantitative analysis
• Problem-solving
• Data gathering
Out-of-Industry Talent
“This is the age of analytics. In the end, the winners will be those that master data and analytics.”
-Mark Breading, Partner and Chief Research Officer, Strategy Meets Action
Questions?
Thank You!
Margaret Resce MilkintManaging PartnerThe Jacobson Group+1 (312) [email protected]