Blog Archive

August 2015

Many insurers are just beginning to come to grips with the demands being placed on them by their customers. Consumers and businesses have become accustomed to interacting with providers of goods and services – like Amazon, Google, John Lewis – where they can expect a tailored experience, based on the intimate knowledge that those companies have of the customer’s habits, likes, dislikes and needs.

I’ve worked at Guidewire, a servant of the Property/Casualty insurance industry, for more than nine years. I feel privileged to know people who have worked in, and in support of, the industry for thirty years or more. Based on what I have seen and learned, I feel confident in this observation: P/C insurance has changed more in the last few years than in the previous few decades, and the pace of change will continue to quicken in the years ahead.

Insurance is a big industry. In the U.S. alone, 7,000 companies collect over $1 trillion of premium a year, resulting in an extremely attractive market for fraud. The FBI and NICB (National Insurance Crime Bureau) estimates that roughly 10 percent of all non-health insurance claims totaling $40 billion a year are very likely fraudulent.

In my previous post, I discussed how analytics can help identify insurance fraud, but how can this be applied in the real world? There has emerged a relatively new technology specifically made to analyze and store relationships or graphs with blazing speed and flexibility. A graph is any type of networked data.