The Knowledge Exchange / Risk Management / Reasons to be cheerful – 2011 in review

Reasons to be cheerful – 2011 in review

A look at SAS, Solvency II, analytics and changes to the insurance industry over the past 12 months

As we begin December it tends to be customary to look back on the year, and not being one to break with tradition, today’s column will review SAS and analytics from an insurance perspective and the annus mirabilis that was 2011.

As SAS kicked off 2011 with record revenue for the previous year, business analytics could not have been a bigger topic. This article listed the six hottest technologies that will transform the insurance industry, leading the way were Data Management, Predictive Analytics and Business Intelligence, the core components of SAS Business Analytics Framework.

In May, a retrospective review of technology changes during the last ten years by publication Insurance and Technology recognized Dr. Goodnight and SAS as one of the top 10 Innovator for Insurance in the previous decade.

Risk continues to be a major subject for insurance carriers, especially those in European with the upcoming Solvency II legislation. While the deadline for the Directive has been pushed back to January 1 2014, this has not delayed the implementation projects for most carriers. SAS continues to be at the forefront for Risk and Solvency II technology with its SAS Risk management for Insurance solution resulting in more than 15 customers worldwide. In October this success was acknowledged by analyst firm Chartis, who named SAS as one of the leading firms for Solvency II technology.

In November, the National Insurance Crime Bureau (NICB) reported a 7 percent rise in questionable claims for the first half of 2011 compared with the previous year. To help address this growing problem, insurance companies are exploring new technology to help identify suspicious claims and this was substantiated by CNA who announced in February that they would be using SAS Fraud Framework for Insurance in their fight against insurance fraud.

However the pièce de résistance came mid-way through the year when analyst firm Gartner’s report Market Trend: No escaping BI and Analytics in Insurance in 2011 recognized SAS as the leading software vendor for business analytics in insurance.

Fortunately the outlook for 2012 appears just as positive, IDC predict a 8.9% compound annual growth rate over the next five year in business analytics, an Accenture survey showed 72% of North American companies will increase spending on business analytics in 2012 and finally, Insurance Networking News, list Analytics and Data Quality as two of the top 5 trends in insurance for 2012.

I’m Stuart Rose, Global Insurance Marketing Manager at SAS. For further discussions connect with me on LinkedIn and Twitter.

 
NOTE: Originally published on The Analytic Insurer.

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