For decades, the insurance industry has led the world in predictive analysis and risk assessment. And today, with the treasure trove of big data available, insurance companies have the opportunity to take this discipline to a whole new level of accuracy and consistency.
The actuarial models that were once driven solely by large internal and external databases can now be fueled with tremendous quantities of unstructured data from social media, online research and news, weather and traffic reports, real-time securities feeds, and other valuable information sources as well as by “tribal knowledge” such as internal reports, policies and regulations, presentations, emails, memos, and evaluations. In fact, it is estimated that 90% of global data has been created in the past two years, and 80% of that data is unstructured. Now add the Internet of Things — computers, smart phones and wearables, GPS enabled devices, transportation telematics, sensors, energy controls, and medical devices.
App Orchid Apps can access and assimilate all these information sources: structured data in internal and external database stores, unstructured tribal knowledge and external data from the internet, social media, and the Internet of Things to create a virtual repository of intelligence. Our apps can harness the power of all this information with artificial intelligence and machine learning to enable advanced predictive analysis simply by typing in a question, such as: What are the chances of a terrorist act in Los Angeles during the month of November? How many passenger train accidents will occur in the Northeast corridor over the next 6 months? What will be the effect on my fixed income portfolio if the Federal Reserve raises short term interest rates by .25%?
With App Orchid apps, you can do Monte Carlo simulations simply by moving and overlaying graphical objects on your computer screen or tablet. Or calculate the likely dollar damages to policyholders caused by an impending hurricane simply by moving symbols for wind, rain, and time duration over a map image. If predictive analysis was this simple and powerful, how much more profitably could you run your Insurance business?
App Orchid can help you combine unstructured documents like compliance, regulations, market rules, regional mandates with risk analytics for superior risk profiling and evaluation.
Catastrophe Risk and Damage Analysis
Incorporate historical weather patterns, news, research reports, and social media, into calculations of risk from potential catastrophes to price coverage or determine prudent levels of reinsurance.
Targeted Risk Analysis (Single view of customers)
With the wealth of individual information available on people and organizations, App Orchid makes it possible to apply AI and cognitive computing principles to provide risk profiles targeted down to an individual. For example, a Facebook profile of a mountain climbing enthusiast would indicate a propensity for risk taking that might warrant a different profile than a golfer.
Each individual assessor has his own predilection to assessing risks. By some estimates, insurance companies could lose hundreds of millions of dollars either through inaccurate risk profiling or through lost customers due to overpricing. App Orchid solutions offer the mechanics to capture “tribal knowledge,” thereby providing a uniform assessment metric across the entire underwriting process.
By unifying unstructured data across historical claims, App Orchid solutions make it possible to establish ground rules (or quantitative metrics) across fuzzy baselines that were previously not possible. Claims notes from customer service representatives that would previously fall through the cracks are now caught and processed and, when necessary flagged, for better claims expediting and improved customer satisfaction. Incorporating personnel records when major casualty event occurs such as a severe storm or flood, you can now dispatch the most experienced claims personnel to areas with highest value property.
With App Orchid it’s easy to integrate social media into the claims review process. For example, it would be very suspect if someone who just put in a Workers Compensation claim for a severe back injury was bragging about his performance at his weekend rugby match on Facebook.
App Orchid blends structured and unstructured data into artificial intelligence apps that will increase the accuracy and versatility of your actuarial, operational, and investment management analytics. And we can do it in as little as several months, not several years, and at a cost of thousands not millions of dollars.