Welcome to: Leveraging Business Intelligence Technologies In Insurance An Insurance & Technology

1. Welcome to: Leveraging Business Intelligence Technologies In Insurance An Insurance & Technology Editorial Perspectives TechWebCast Sponsored by Microsoft Tuesday, December 4, 2007 9:00 AM PT / 12:00 PM ET

2. Our Distinguished Panel • Colin S. Cole, Industry Technology Strategist for Insurance, Microsoft Corp. • Julie Olson, VP of Business Development, North America, Moore Stephens Business Solutions • Kathy Burger, Editorial Director, Insurance & Technology

3. Agenda • Insurance industry challenges: improve financial performance, drive growth, facilitate compliance. • Defining business intelligence and its potential in insurance – getting to true enterprise data management & real-time decision-making. • Strategies & solutions – enabling an integrated BI platform. • Interactive Q&A session and follow-up.

4. 2008 Priorities for Insurance IT • Carriers anticipate IT spending increase; P&C firms focus on policy admin, underwriting & claims (I&T/FTG research). • IT increasingly charged with helping drive growth & competitiveness (policy admin, agent-enabling, customer experience/retention, etc.) … • While also identifying/managing risks, reducing costs/inefficiencies (paper, headcount, etc.) & speeding/streamlining processes.

5. Drilling Down: IT Implications • Ongoing focus on enterprise architecture/ infrastructure, to support integration and gain flexibility and reliability. • Standards-based integration/interoperability is key – for enterprise views (risks, customers, distributors, etc.), multi-channel, governance/ compliance. • Info Management – what’s the data, where is it, who has access, how good/clean is it?

6. Staying Ahead of the Curve • Enterprise focus & transparency makes information available to all. • BI transforms from “understanding history” to real-time analysis, forecasting and prediction. • Leveraging key tools/techs: analytics, telematics, data warehouse, modeling, etc. • Competitive considerations – where are the differentiators as commoditization takes hold and “best practices” become baseline proficiencies.

7. It’s Not All About Technology • External factors (e.g., mergers/restructuring, partners, politics, regulatory changes). • Workforce – do existing professionals have the right skills sets? Do you have the right tools for tomorrow’s professionals? • Business/IT alignment – the perpetual challenge.

8. Q & A • Submit Your Questions Now • Colin S. Cole, Industry Technology Strategist for Insurance, Microsoft Corp. • Julie Olson, VP of Business Development, North America, Moore Stephens Business Solutions • Kathy Burger, Editorial Director, Insurance & Technology

9. Resources To view this event on-demand: http://www.insuranceandtech.com/events/ondemand/ For more information on this topic: http://www.microsoft.com/insurance

10. Leveraging Business Intelligence Technologies In Insurance Microsoft Corporation Colin Cole Insurance Industry Technology Strategist

11. More users need to analyze more data more often More policies are being imposed to control data It is difficult to analyze large amounts of data Excel isn’t part of a formal BI/data infrastructure and widespread use and popularity “creates” multiple versions of the truth Common Enterprise Challenges

12. Insurers cannot easily produce monthly management and financial reports and face mounting costs in re-keying or manually manipulating management information to close-out filing/financial cycles Executive information systems are not tightly integrated with underlying operational systems Business leads traditionally have little-to-no insight as to which customers are most/least profitable Business leads traditionally have little-to-no insight as to the real-time performance of growth or retention programs Finding exceptions to preferred insurance business models or spotting trends happens far too late to make changes to operational Insurance-Specific Challenges

13. Business Intelligence Innovation Investments A Search for the Truth Decades of insurance data warehousing / reporting projects have not produced “data mastery” Executives remain challenged to know what is “actually” happening in their business, versus what segregated reports and bottlenecked decision support systems can reveal at any given time Corporate and individual executive risks have escalated, with new regulations, demanding greater accountability and insight into actual business operations.

14. Agent Performance • Agent productivity • Agent persistency rates • Agent loyalty • New business ratio • Policy renewal rates • Loss trends by customer, geo, product and broker

15. Underwriting / Actuarial • Underwriting planning and budgeting • Track exposures, and adjust pricing accordingly • Manage or estimate catastrophe loss potential • Benchmark rates to insurance industry averages Mortality Studies Premium Persistency Loss Ratios Claim Analysis & trends Earnings by Source Severity Analysis

16. Claims Analysis • Loss Ratio analysis • Claim Settlement times • Demographic distribution • Understand and control claims processing costs • Fight fraud by visualizing trends • Increase Predictability

17. Carriers need stronger (and faster) business interconnections between and among the following processes; insurance product development underwriting/business-rules management agency sales forecasting policy issuance & servicing life-cycles claims controls. Financial environment needs tighter controls to eliminate inaccuracies and compliance nightmares of managing “thousands” of individual spreadsheet calculators. Predictive analytics used to mine & define customer preferences for products and services Better profitability and activity analysis can help carriers, agents and brokers adjust their risk and customer portfolios for better performance Fraud detection moved from post-event to preventative posture, through the use of real-time analytics BI Requirements for Insurers

18. Microsoft Business Intelligence Vision Improving organizations by providing business insights to all employees leading to better, faster, more relevant decisions • Complete and integrated BI offering • Widespread delivery of intelligence through Microsoft Office • Enterprise grade and affordable

19. PerformancePoint Server 2007Better Execute on Strategy Monitor What happened? What is happening? Analyze Why did it happen? Strategy Plan What will happen? What do I want to happen? Continuous business improvement, not just an annual exercise 19

20. Our Integrated BI Offering DELIVERY COLLABORATION CONTENT MANAGEMENT SharePoint Server SEARCH Reports Dashboards Excel Workbooks Analytic Views Scorecards Plans END USER TOOLS & PERFORMANCE MANAGEMENT APPS Excel PerformancePoint Server BI PLATFORM SQL Server Reporting Services SQL Server Analysis Services SQL Server DBMS SQL Server Integration Services

21. AGENTS / BROKERS Gross Premium Income (GPI) Forecast v Actual (%) Brokerage Forecast v Actual (%) Effective Brokerage ($) Realised Brokerage ($) Unrealised Brokerage (%) Ratio New Business to RNR/NTU (#) Insured Satisfaction Rating (#) Underwriter Satisfaction Rating (#) Unallocated Cash ($) Funding ($) Number of Complaints (#) Solvency (%) Overdue Premium ($) Overdue Claim ($) Profit (#) ROI (%) Loss Ratio (%) Worse Insured / Client Loss Ratio (%) Best Insured / Client Loss Ratio (%) GPI Forecast v Actual (%) Claims Forecast v Actual (%) Best Product (abc) Worst Product (abc) Overdue Premium ($) Outstanding Claims ($) Worst Insured / Client GPI Forecast v Actual (abc) Best Insured / Client GPI Forecast v Actual (abc) Worst broker for settlement (abc) Best broker for settlement (abc) Overdue Claims ($) GPI Forecast v Actual (%) Number of Complaints (#) Not Taken Up (NTU) Ratio (%) Risk Not Renewed (%) New Business to RNR/NTU Ratio (%) GPI v GPI Limit (%) Loss Ratio (%) Written v Paid (%) Insurance Key Performance Indicators (KPIs) Our partners have already prepared cubes, views and reports using our tools This customization will save customers time and money UNDERWRITERS INSUREDS

22. Driving Business Performance for Insurance

23. Moore Stephens • $1.4 B annual revenue global network of professional services firms • Creators of bIntelligent for Insurance • Performance & Risk Management for Carriers, Reinsurers, & Brokers • Standard Frameworks, Models, & KPI Library • Deployed at over 70 customer sites

24. Moore Stephens Insurance Customers

25. Different users, different requirements… Strategic Planning Executives • Enterprise data • Consistent GUI • Industry drivers • Enterprise KPIs Functional Managers • Enterprise and LOB data • Scenario and simulation • History and forecasts • Domain-specific KPIs Tactical Analysis Same view of the truth !! LOB Managers • Process data • Real time • Feedback loops • Operational metrics Operational Managers • LOB data • Drill-down option • Business trends • LOB KPIs Operational Decisions Detailed Summarized Data Granularity

26. Multi-Dimensional Views Submissions/ Renewals Plan/Prior Period Coverage/Line/Peril Premiums Business Unit Claims/ Case Reserves By Location Expenses/IBNR /ROC Insured Exposure/Pricing Producer Reinsurance Policy Structure Operations/HR

27. Dashboards/alerts KPI Analytical solutions Analytics Reporting solutions Central data store Extraction procedures Policy Admin Accounts CRM Others Data Solutions Logical Components

28. Business Performance Management • Accurate (1) • “Gold Copy” Sourcing • Shared Definitions & MetaData • Timing, timing, timing… • Available (2) • Consumable across delivery channels & tools • Dynamic: an answer begets a question • Distributed: beyond analysts to everyone • Actionable (3) • Integrated into business processes • Connecting executive decisions with operational activity • Real-time impact: affecting how we’re doing, not showing how we did.

29. Predictive Analytics Budgets / Targets Rating Engine Collaboration Deployment Security Risk Management Portal Scorecards Dashboards KPIs Analytics Reporting Reinsurance Submissions Finance Claims Policy Business Models Data Warehouse Data Extraction / Mapping Other Insurance Accounts Typical Architecture Additional Components Core Components

30. Demonstration