3 Data analytics – a maturing discipline
The four stages of analytical maturity
describe where the business is in
terms of harnessing data.
Most risk managers will be used to
reporting on claims and business
trends. However, mature risk
managers will use the available data
and apply analytics to it to gain a
deeper understanding of their risks,
predict when those risks will manifest
and make data-driven proposals on
how they can be managed.
Timely, well analysed data can make
a persuasive argument for business
model and process change.
There is no question that a mature
approach to analytics takes time
and resource. Businesses will
need to initially focus on getting
their existing data and data
infrastructure in line, before they
can move up the maturity model.
T
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M
E
EF
F
O
R
T
C
O
M
P
L
E
X
I
T
Y
V
AL
UE
DESCRIPTIVE
ANALYTICS
PREDICTIVE
ANALYTICS
DIAGNOSTIC
ANALYTICS
PRESCRIPTIVE
ANALYTICS
THE WHAT
Reporting the loss
across the business
THE FUTURE
Identifying where future
losses will occur and when.
Spotting 'red flags' which can
indiciate where losses will
turn into major claims
THE WHY
Understanding why
rates of loss differ
across the business
THE ACTION
Agreeing processes
or changes to avoid or
reduce the impact of
predicted losses
ANALYTICAL CAPABILITY MATURITY
DRIVING THE DATA DIVIDE
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