Big Data goes to Human Data Science: a cultural and strategic trend for all big companies, not least in the insurance industry. What does it mean? What does it entail? Let’s try to investigate a path already in progress and which some companies have been speeding up. BNP Paribas Cardif launched the sixth edition of the Open-F@b Call4Ideas challenge, in partnership with InsuranceUp (here the landing page), calling on start-ups, scale-ups, innovative companies and young students to develop solutions designed to boost the value chain powered by data, always focusing on the human factor.
Longstanding statistical analysis and data processing have been one of the mainstays of insurance activity. Data have always been collected and processed to define subscription choices, pricing policies, claims settlement and fraud prevention.
Until the digital era, data sources ranged from medical and demographic information, risk elements, lifestyles and behaviors, claims history, bank exposure, and more. Searching for more comprehensive data sets and predictive models has therefore always been a top priority for insurance carriers, with Big Data Analytics (BDA) now assuming not an unexpected relevance.
Traditional data in the digital age have been gathered more thoroughly and accurately, yet not only: data are increasingly integrated with new sources, such as Internet of Things (IoT) data, online data or bank account and credit card data, genetic data, even a selfie can be used to perform more sophisticated and complete analyses in a process called ‘data enrichment‘. New data are increasingly available as sources increase, with the following table showing this.
Big Data Analytics: how insurance companies are getting along with it
BDA has a disruptive knock-on effect throughout the value chain and processes: pricing and underwriting, sales and distribution, after-sales service and support, claims management, product development.
In a nutshell, insurance companies are facing increased operational efficiency, cost reduction, greater customer satisfaction, and business evolution.
According to Eiopa (Report Big Data Analytics in Motor and Health Insurance), data have been used to date throughout the entire value chain of motor and health insurance, fostering new data-driven business models.
This is of course a turning point for the insurance industry: the evolution of insurance in insurtech goes without saying, the use of data is the prerequisite and the developments we are going to witness in the years to come are likely to encompass all the traditional insurance branches and the new ones to be designed to meet the needs stemming from new lifestyles (just think of the upcoming need for insurance in the sharing economy, cyber security, natural disasters and so on).
Big Data and insurance: which data should be used and how to
Data consumption in insurance industry is therefore not a matter to doubt on, the real issue is about which data to use and how to do it. First and foremost, there are rules on data protection, both those already in force, which must of course be complied with, and those that are still being defined by laws worldwide. Yet the choices a Company makes upstream are also relevant, with its own data culture, policy and innovative vision of data-driven business.
Compliance with legal obligations must be furthered: a company using data can do more according to its awareness and encourage the ethical approach to data, which focuses on the impact and value for the customer (or employee) rather than on the benefit for the same company.
As BNP Paribas Cardif’s Chief Analytics Officer, Daniele De Vita, said, “It is a matter of keeping on working in this perspective, ensuring that data supplied to us by the customer, in addition to proper and transparent use, are effectively and efficiently managed to increase the quality and opportunities for the services offered, making such services ever more innovative and attractive. Our mission as a company is to improve our customers’ lives, something we can now pursue through Human Data Science”.
BNP Paribas Cardif and Human Analytics
BNP Paribas Cardif in Italy has been embracing the concept of Human Analytics since a while; a ‘human’ approach to data analysis and modeling that enhances personal data (preferences, interests, values, emotions, health, personal features, etc.) collected from a number of sources, integrating such data with more traditional information, in a ‘data enrichment’ process aimed at a deeper understanding of personal needs and fears so as to provide innovative solutions and improve customer relationships. These efforts are mainly focused on the ‘health’ area, the most ‘human’ one, where a huge amount of sensitive data flows; yet also on corporate welfare, where data can be used to improve the quality of employees’ well-being.
These are the context and the vision behind the decision to dedicate the sixth edition of Open-F@b Call4Ideas, the open innovation initiative jointly organised with InsuranceUp, to Human Data Science. The call for applications is now open until October 28th.
Open-F@b Call4Ideas 2019, how it works
BNP Paribas Cardif is looking for start-ups, scale-ups, innovative companies and young students who can offer solutions to enrich the value chain powered by data in many sectors, including innovative micro-insurance services, leveraging existing information to gain added value, tools for tailoring customer relations, solutions to improve customer journey and customer well-being, new custom-designed insurance products, ideas for positioning in the Health ecosystem, including nutritional and psychological services.
The shortlisted participants of Open-F@b Call4Ideas 2019 will be chosen by a committee made up of executives from BNP Paribas Group and BNP Paribas Cardif, academics in the field of digital technologies and specialists; the shortlisted participants will submit their innovative ideas to the final event to be held in Milan at the end of November. The three winners will have the opportunity to be supported by BNP Paribas Cardif R&D team in implementing and developing their idea or project, according to business and market needs.All rights reserved