In Europe, more countries are now offering telematics services such as Pay As You Drive (PAYD), where drivers can benefit from lower premiums if they drive less, and Pay How You Drive (PHYD), which rewards “good” drivers. As new products and services emerge, it’s important for motor insurance companies to know how to extract information to deduce driving habits from telematics data. This article by Milliman’s Rémi Bellina, Antoine Ly and Fabrice Taillieu explores the technological choices and opportunities telematics provide insurers. It also explains how insurers can process data to detect driving behaviour based on projects led by Milliman’s analytics team.
Milliman will debut its proprietary predictive modeling platform at the Insider Tech Conference held in New York City on December 6. Milliman’s recently created analytics software, Solys, uses advanced computer languages, models, and machine learning so that consultants can serve their clients with increased speed, reach, and cost-efficiency.
An internal tool that can be used to benefit Milliman’s current and future clients, Solys simplifies processes, improves data management, and performs advanced predictive analytics using the latest software environments and programming languages. The leading technology increases efficiencies and consultant capabilities in the growing InsurTech field. Milliman consultants will be discussing the tool and the firm’s work in InsurTech at a panel discussion at the Insider Tech event in New York on December 6.
As insurers face disruption around the “Internet of Things,” the shared economy, and autonomous vehicles, it’s vital that their consultants provide the best answers in the fastest and most cost-efficient manner possible. Milliman’s advanced predictive modeling tool enables consultants to address their clients’ InsurTech questions and remain leaders in this rapidly changing industry.
To read Milliman’s InsurTech research, click here. Also, to subscribe to Milliman’s InsurTech updates, contact us here.
In most cases, the current reserving practice consists of using methods based on claim development triangles for point estimate projections and capital requirement calculations. Taking advantage of the information embedded in individual claims data is a promising alternative to address the need for more accurate models within the reserving practice. This white paper by Milliman’s Laurent Devineau, Fabrice Taillieu, and Alexandre Boumezoued examines the innovative opportunities offered by alternative individual reserving models and the main challenges with their implementation.
The latest edition of Milliman Impact entitled “Reinsurance: Optimising your strategy” offers perspective on how insurers should approach their reinsurance options in light of changing market conditions.
Here’s an excerpt from the article:
Increasingly, insurers are seeking bespoke reinsurance solutions to address a range of issues, from dealing with property risk accumulations to protecting reserves or achieving capital efficiencies under Solvency II. There is also a wider emerging trend towards more innovative internal and external reinsurance mechanisms, and a growing business case to bring certain reinsurance purchasing functions in-house.
“Despite an increasing complexity of reinsurance mechanisms, there are a number of factors leading insurance companies to internalise their reinsurance strategies, underpinning a sound and efficient decision process in terms of reinsurance,” says Fabrice Taillieu, principal at Milliman in Paris….
With changing regulation, a shift to enterprise risk management by insurers, and the increasingly cross-border nature of insurance, a number of firms have sought innovative capital management and reinsurance frameworks to help enhance earnings and deliver on their corporate strategies.
Many of the large multinational insurance groups have now centralised their reinsurance purchasing, taking a more sophisticated and global approach. Typically, these groups use dedicated legal entities to more effectively manage risk and capital across the group through internal reinsurance agreements. They also use such entities to leverage their purchasing power, consolidating their reinsurance purchasing globally.
While these types of arrangements tend to be favoured by the large multinational insurers, there are ways in which other insurers can achieve many of the same advantages, according to Adam Senio, senior consultant at Milliman in Paris.
“There are now many options open to insurers looking to optimise their capital and reinsurance purchasing. More insurers are using internal and external reinsurance schemes to optimise and transfer capital at the group level,” he says.
For example, Milliman has worked with a number of European insurers, helping them take a more global approach to reinsurance and establish internal reinsurance mechanisms that cede portions of portfolios from local subsidiaries back to the parent company, highlights Senio.