13 posts categorised "Paul Delbridge"

15 August 2017

Deploying Machine Learning in claims reserving

By Paul Delbridge Many insurers are investigating how Machine Learning can be best deployed to both improve risk segmentation and enhance pricing models. Many insurers have already acknowledged the speed at which both supervised or unsupervised Machine Learning can be used to build new types of high-quality models, leverage Big Data, and identify new relationships between variables. Relatively little has been made to date of the capabilities of Machine Learning or Artificial Intelligence to dramatically increase both the speed at which claims reserving can be undertaken, and the extent to which highly sophisticated automation can be introduced.

19 April 2017

Deploying machine learning in insurance pricing

By Paul Delbridge Insurers have been investigating the deployment of machine learning techniques in the pricing arena, seeking to exploit the speed at which models can be built and refreshed compared to the use of more traditional generalised linear modelling techniques. Machine learning techniques offer significant advantages over these traditional models, including the availability of various types of non-linear models which can lead to a wide range of new insights. However, these new models are more difficult to explain to both brokers and to customers (especially when these more sophisticated models suggest significant changes compared to the expiring prices), and there is a degree of resistance to what might be viewed as a black box technology by management and marketing teams.

16 November 2016

How insurers can make still make use of “personality” data

By Paul Delbridge In early November, a leading UK personal lines insurer announced the launch of an app that would use Facebook data to “better understand first time drivers and more accurately predict risk”. This was intended to award discounted premium rates to safer drivers, who would be identified on the basis of specific personality profiles. Shortly afterwards, Facebook announced that this contravened its privacy policies, triggering a change of plan for the insurer.

12 September 2016

How London Market Insurers can navigate the challenges of deploying predictive analytics

By Paul Delbridge In my first London Market focused blog, "How London Market insurers are responding to the perfect storm of challenges", I touched on the competitive advantages that could rise from exploiting Data Analytics. I believe that predictive analytics is key to boosting underwriting returns in the London Market...

10 May 2016

Leveraging Big Data and Analytics to enhance the pricing of personal lines insurance

By Paul Delbridge Personal Lines insurers seeking to gain a competitive advantage have been looking at a wide variety of additional data sources to identify additional or better predictors of claims propensity. Technology advances, exponential growth in Big Data and the digital revolution have provided both opportunities and challenges to...

14 March 2016

Price elasticity - better ways of predicting insurance customer behaviours

By Paul Delbridge Price elasticity is an area that insures have spent a lot of time analysing, not least in the context of understanding customer lifetime value and ensuring that customers deliver acceptable returns through a sufficiently long tenure. With the proliferation of price comparison websites, aggressive marketing campaigns and...

18 January 2016

The evolution of risk analytics for non-life insurers - part 2

By Paul Delbridge Last week in my blog, I discussed the areas where risk analytics are starting to play an important role for insurers. As always though, with risk comes opportunity. Advances in technology and the huge potential offered by the Internet of Things are also going to transform the...

11 January 2016

The evolution of risk analytics for non-life insurers

By Paul Delbridge Now that the implementation date for Solvency II has passed, and the first wave of internal capital models have been approved by regulators across the EU, insurers are turning more towards getting the most out of their very significant investment. One key area is Risk Analytics, from...

26 October 2015

Superior risk segmentation and pricing to drive underwriting profits

By Paul Delbridge The UK insurance market continues to be highly competitive, as highlighted by the half year results delivered by Lloyd’s of London – in essence, current year underwriting profits were negligible in a relatively benign claims environment, with the overall result supported by prior year reserve releases and...

30 June 2015

The critical role of fit-for-purpose financial modelling and analytics in the Oil & Gas industry

By Paul Delbridge These are challenging times for the Oil & Gas industry, with the dramatic falls in oil prices triggering cutbacks in production levels, headcount reductions, renegotiations with oil services companies, lower planned capex and postponed projects. There is a very real risk of an economic triple-whammy: as the...

07 May 2015

The importance of getting Demand Forecasting right

By Paul Delbridge The financial reporting season for retailers, Fast Moving Consumer Goods (FMCG) companies and car manufacturers has brought some interesting features to light. The ability to gauge consumer demand accurately is a key theme. For retailers, overstocking (especially leading up to the critical holiday trading period) leads to...

24 March 2015

Predicting customer behaviours

By Paul Delbridge Here I build on my earlier blog 'Understanding customer behaviours'... If you can understand your customers’ historical behaviours to the extent that you can accurately predict their likely actions under different scenarios, such as: new products new product bundling propositions innovations improved convenience price promotions, cash backs,...

09 March 2015

Understanding customer behaviours

By Paul Delbridge, PwC Partner As the spectre of short term deflation looms in the UK, manufacturers, wholesalers, retailers and consumers are entering somewhat unfamiliar territory. The supermarkets have already faced the phenomenon of falling real prices for food for some time, but what does the prospect of negative inflation...