Advancement in the insurance industry has been hampered by a lack of investment industry-wide in data warehousing and data mining technology. Insurance product designers are now working with limited detailed data about policyholders and claim histories. Instead, they rely on data summarizations (actuarial tables summarize data), supplemented by intuitive "hunches," to guide the development of new policy products, creative rating structures and appropriate pricing.

The lack of detailed information about policyholders and claims has prevented the insurance industry from following the lead of its sisters in the financial industry, such as mortgage banking, which have developed mechanisms for securitizing products after they are sold and selling product-backed securities in a secondary market.

A data warehouse is an information technology investment specifically designed to bring information from one or many sources into conformity, retain it at the most detailed desired level, hold it in readiness for inquiries on demand, and assist the user in making inquiries. In the complex world of risk and insurance operations today, the only viable means of obtaining feedback on the success of an enterprise may be a dedicated collection, storage, and inquiry system.

Our secret: in designing a warehouse, focus religiously on what is absolutely required to measure success of operations. A data warehouse's ultimate role is to focus the enterprise on core priorities. These are profitability and markets for insurers and, for corporations, lowering the cost of risk.

Kariminia implemented a multi-dimensional data warehouse for GE Insurance that serves as the company’s central integrative information system. It is used by executive and middle level management to assist in strategic and tactical decision-making processes.

The data warehouse consists of three modules, encompassing all areas of the company’s activities. These are policies, agents, and insured customers. The policies module handles all the types of policies, and break down each category in easy-to-use databases in accordance with parameters determined by the users. These include demographics, agent profiles, disbursements vs. premiums, and more. Each module generates an overall view, as well as intuitive analytical tools that help management make critical decision in real-time.

The data warehouse serves as an important tool for GE Insurance. It offers real added value to marketing personnel and management in their analysis of existing business, as well as helping them identify trends and potential activities that will increase efficiency and create new and profitable business opportunities.

This page last updated on 21 June 2008 - ©1996-2008 Kariminia LTD All Rights Reserved

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