STRIDE enables access to big data

STRIDE has data standards embedded at its core; this will further increase the value of the data, as there will be no interpretation of the data required. Not only will the compliance teams breathe a sigh of relief as Binder Regulations and SAM requirements can be met, but actuaries will be able to increase the value and accuracy of their analytical forecasts.

 

Even though the retail and banking markets in South Africa are not using "big data” to the extent that their counterparts in the US and UK are benefitting from it to analyse market trends and make faster decisions, they are still seeing massive cost reductions and time saving in decision making and product development. Let’s see how "big data” is used in the UK to counteract the financial losses experienced over the past years:

 

"Retailers use data to effectively reach consumers through the correct channels and with messages that resonate to their target audience; they use data to find, target and retain their ideal customers. Banks focus tremendously on fraud management and enhanced customer management through better customer insight. Together, various players in the two industries, partner together to create new income streams by building on insight into customer intelligence and behaviors that they are able to monetize”.

 

For the short term insurance market in South Africa, there is still a lot of work to be done before intelligence can be created around the data. After data volumes are achieved, focus will need to shift to data quality and data variety. IT infrastructures will need to be able to accommodate the data and allow intelligent use of the data. Organisational structures and skills will need to be adapted to gain the most value from the data.

 

But, once this is achieved, just imagine the possibilities!

 

To be more specific, let’s talk about commercial insurance data. All efforts thus far were focused on personal lines mapping and implementation, but we have not forgotten about General Commercial lines data. Major insurers spent some time reviewing the general commercial lines standard as it was released in V1 of the SA ACORD AML Standard. Some changes were identified to bring this more in line with the personal lines methodology, which resulted in the latest Standards release V2.1. This release includes all changes requested on both personal lines and general commercial lines, resulting in a better standard to enable efficiencies across the mapping exercises. We can now confidently say that it is safe for users to start commercial lines mapping, and time to start dreaming of all the time and effort that will be saved once double-capturing of commercial policies are eliminated!

 

Efficiency and productivity must then become the flavour of the day!