Internal Data First

Vishwa Kolla Head of Advanced Analytics

John Hancock Insurance

TAI

User

Group

, 2017

Technology (Programming)

Analytics (Math, Stats)

Business

Advanced

Analytics CoE,

Maturity Model

Customer Analytics

(entire value chain)

Machine Learning

Scoring Engine

Optimization

Simulations

Forecasting & Time

Series

• 16+ Years

• John Hancock Insurance

• Deloitte Consulting (Industries – Insurance,

Retail, Financial, Technology, Telecom,

Healthcare, Data)

• IBM

• Sun Microsystems

Expertise

Experience

Vishwa Kolla Head of Advanced Analytics

John Hancock Insurance, Boston

MBA Carnegie Mellon University

MS University of Denver

BS BITS Pilani, India

(Existing) Customer Centricity is …

o Good

o Bad

o Both

o None

On Customer Centricity Journey my firm …

o talks best practices

o implements best practices

o understands best practices

o thinks best practices

To further Customer Centricity Data is …

o is the most important

ingredient

o is one of several ingredients

Internal Data contribution to data gold …

o 00-25%

o 25-50%

o 50-75%

o 75-100%

So

What? Case In Point Now What?

Value from Internal Data is … well, HUGE

~$820 B

Value of

Customer Data +

Algorithms

$1.2 T Market Cap

(11/30/2016)

$120 B Debt

(11/30/2016)

$178 B Brand Value

(05/2016)

Source: http://www.forbes.com/powerful-brands/list/2/#tab:rank

Embracing Data helps with Top & Bottom lines

2001 – 2013 CAGR Revenue (Firm | Industry)

Source: 2001 – 2013 Revenue figures from Capital IQ

3%

3%

3%

1%

5%

7%

7%

8%

10%

12%

TAI

User

Group

, 2017

Data is the new oil …

Source: http://www.ibmbigdatahub.com/infographic/four-vs-big-data

Global

Big

Data

Confe

rence,

Santa

Clara

March

7-9

11

… and Analytics is the new combustion engine

De

scrip

tiv

e

Pre

dic

tive

Pre

scrip

tive

Nu

dg

e

Co

gn

itiv

e

Exp

erim

en

tal

What

Happened?

What

Will Happen?

What

Action?

What

Outcome?

How does

a Human do?

What should

I expect?

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User

Group

, 2017

The promise is real

13

Classification

14

Recognition

15

Recommendation

16

Assistance

17

Relevance

18

Convenience

19

Automation

So What?

Case

In

Point?

Now What?

Prospect Acquire Nurture

Global

Big

Data

Confe

rence,

Santa

Clara

March

7-9

22

Analytics Stack at Hancock

Systems

Infrastructure

Software

Infrastructure

SQL Server SAS Server R Server RDP Server App Server Hadoop

Data

Infrastructure

Accelerators

Match Merge Profiling Segmentation Exploration Modeling

Productivity

Tools

Innovation

Rules Engine Scoring Engine Visualization Frameworks Presentation

Templates

OCR Engine

Dynamic eApp Web Scraping Middleware

Web Apps

TAI

User

Group

, 2017

Understanding the WHO is the first step …

Insurance Investments Retirements

TAI

User

Group

, 2017

Look-alike Models are the next step

>

Source: Krux.com

TAI

User

Group

, 2017

The new target population is very different

TAI

User

Group

, 2017

Internal data alone is not enough

Global

Big

Data

Confe

rence,

Santa

Clara

March

7-9

27

Internal data helps improve operations

Decline

Standard or

Better

Global

Big

Data

Confe

rence,

Santa

Clara

March

7-9

28

Internal data enables customer-centricity

Decision

Acquired

Scheduled

Underwriter Applicant Part I

Typically

3-6 weeks

Process

Bottle

neck

Traditional Process

End to End Turn Around Time = Hours to 3 - 6 weeks

Consent

Proxy for Cholesterol,

Glucose, Nicotine

Likely to misrepresent

Adjustment for Height

and Weight

Other issues found

after roll out

Encourages healthy

people to apply

TAI

User

Group

, 2017

https://www.youtube.com/watch?feature=player_embedded&v=XswX1TSQwfQ

Earn points for

Vitality Health

Review

46

43

Save 50% on

luxury hotel stay

Earn points for

biometrics from

underwriting

Earn points for

going

to the gym

Earn points and

save $$ buying

HealthyFood

Earn points for

healthy

activities

Bob receives

his free Fitbit

Bob receives

his Welcome

Kit

Bob receives

his policy

Age

Age

Internal data helps nurture the relationship

31

Internal Data Helps Understand the Customer

7. Rewards: • Most Common Redemptions:

• Nutrisavings

• Amazon Gift cards

• Starbucks

6. Activity: • Most Common Activities:

• Physical Activity

• Prevention

• Education

1. Sales Force: • 2016 Campaigns Executed: #

• 2016 New Leads: #

• 2016 Vitality Apps: #

2. Application: • 2016 Applications: #

(Vitality #)

4. Premiums • Median Annual Premium: #

(Vitality #)

5. Engagement: • # Fitbit redemption

• # Linked Fitbit

3. Approval: • 2016 New Policyholders: #

(Vitality #)

So What? Case In Point? Now

What?

TAI

User

Group

, 2017

Become internal data rich first

TAI

User

Group

, 2017

Then enhance w/ external data

Image Source: http://www.janrain.com/resources/webinars/eureka-7-ways-to-mine-the-hidden-gold-in-your-customer-data/

(Existing) Customer Centricity is …

o Good

o Bad

o Both

o None

On Customer Centricity Journey my firm …

o talks best practices

o implements best practices

o understands best practices

o thinks best practices

To further Customer Centricity Data is …

o is the most important

ingredient

o is one of several ingredients

Internal Data contribution to data gold …

o 00-25%

o 25-50%

o 50-75%

o 75-100%

39