The Role of Analytics Is to Extract Value

Below is the continuation of the transcript of a Webinar hosted by InetSoft on the topic of Data Analytics in the Insurance Industry. The presenter is Christopher Wren, principal at TFI Consulting. .

The topic of mobile and the whole issue of ubiquitous knowledge anytime, anyplace, anywhere, the way in which information is consumed is important. The issue of the emergence of new distribution channels, and the tradeoff often giving away location for example, in return for value, are other challenges.

It's interesting that for different demographics there are different viewpoints in terms of what information they are prepared to share on their mobile device in return for, for example, a cheaper cup of coffee. Analytics in all its different forms, I will talk about that in more detail later, but fundamentally the role of analytics is to extract value from the data and provide impact at the point of need.

Then finally, there is the issue of fintech, financial technology, most specifically the issue of or the subject of insurance tech. Insurance tech is one of the fastest growing areas in the insurance market which by definition is disruptive, involving new cutting-edge technology and perhaps bringing some element of risk to the insurance operation.

All these things are occurring really and are affecting the way that we do business. But the insurance executives of today need to be able to look around the corner and think about the new mega trends, the new mega trends in insurance. For example, the connected car, or connected home, or connected person, the impact of urbanization on how the movements of people from the countryside into the cities changing not only the issue of risk but also the impact of marketing and distribution, these have to be considered.

Geo-Socialization

The concept of geo-socialization, in fact, the interaction between location and analytics and the new business models in the insurance sector which are emerging out of that has to be considered, for example, the concept of one time insurance. In other words, the mobile device tells the insurer where you are and what you are doing, and if it's insurable, then an insurance offer is pushed out to you, and payment is made on the mobile phone and charged to your mobile account.

Geo-socialization in the realm of analytics represents a convergence of geographic information systems (GIS) and social analytics, enabling organizations to derive insights from spatially-referenced social data. This emerging field leverages the power of location intelligence and social media data to understand the spatial dynamics of human behavior, interactions, and trends. In this article, we'll explore the concept of geo-socialization in analytics, its applications, and its impact on various industries.

Understanding Geo-socialization in Analytics:

Geo-socialization refers to the process of integrating geographic context into social interactions, behaviors, and data analysis. With the proliferation of social media platforms, location-based services, and mobile technologies, individuals are increasingly sharing geotagged content, such as photos, check-ins, and status updates, providing valuable insights into their activities and preferences. Geo-socialization in analytics involves analyzing and visualizing this geotagged social data to uncover spatial patterns, trends, and relationships.

Applications of Geo-socialization Analytics:

1. Location-based Marketing: Businesses leverage geo-socialization analytics to target and engage customers based on their location and social behavior. By analyzing geotagged social media posts and check-ins, marketers can identify popular venues, events, and attractions frequented by their target audience and tailor marketing campaigns to specific geographic areas.

2. Urban Planning and Development: City planners and policymakers use geo-socialization analytics to understand how people move and interact within urban environments. By analyzing geotagged social media data, transportation patterns, and land use information, planners can identify areas of high activity, congestion, and demand for infrastructure improvements.

3. Crisis Response and Disaster Management: During emergencies and natural disasters, geo-socialization analytics enables responders to monitor real-time social media feeds for situational awareness and resource allocation. By analyzing geotagged posts, requests for help, and reports of damage, responders can prioritize response efforts, coordinate rescue operations, and disseminate critical information to affected populations.

4. Tourism and Hospitality: The tourism industry utilizes geo-socialization analytics to understand traveler behavior, preferences, and destination choices. By analyzing geotagged photos, reviews, and social interactions, tourism operators can identify popular attractions, improve visitor experiences, and target marketing efforts to specific geographic markets.

5. Retail and Consumer Insights: Retailers leverage geo-socialization analytics to gain insights into consumer behavior and shopping patterns. By analyzing geotagged social media posts, check-ins, and reviews, retailers can identify trends, preferences, and sentiment related to specific locations and adjust inventory, pricing, and promotions accordingly.

6. Public Health and Epidemiology: Health agencies utilize geo-socialization analytics to track the spread of infectious diseases, monitor public health trends, and target interventions. By analyzing geotagged social media posts, health-related searches, and location-based health data, agencies can identify disease hotspots, assess risk factors, and implement targeted prevention and control measures.

Impact of Geo-socialization Analytics:

1. Enhanced Decision-making: Geo-socialization analytics provides organizations with valuable insights into spatial patterns and trends, enabling more informed decision-making and strategic planning. By understanding the geographic context of social interactions and behaviors, organizations can identify opportunities, mitigate risks, and optimize resource allocation.

2. Improved Customer Engagement: By leveraging geo-socialization analytics, organizations can personalize customer experiences, deliver targeted messaging, and foster deeper engagement with their audience. By understanding the geographic preferences and interests of customers, organizations can tailor marketing campaigns, promotions, and offerings to specific locations, increasing relevance and effectiveness.

3. Better Resource Allocation: Geo-socialization analytics enables organizations to optimize resource allocation and service delivery based on geographic demand and trends. By identifying areas of high activity, demand, or need, organizations can allocate resources more efficiently, improve service coverage, and enhance customer satisfaction.

4. Fostering Innovation: By combining geographic information with social data, organizations can uncover new insights, trends, and opportunities that drive innovation and competitive advantage. Geo-socialization analytics enables organizations to identify emerging trends, understand customer behavior, and anticipate market shifts, fostering a culture of innovation and adaptability.

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The fourth key mega trend which we identify is what we call innovating to zero. In fact the use of insurance data analytics to identify zero turnage, zero claims leakage and zero friction within the process. Perhaps if we move on and have a very quick level set and recognize we are in the era of big data, an environment which is a complex network of over one trillion devices generating 2.5 billion gigabytes of information every day.

Of course, all of us will think, well what actually does 2.5 billion gigabytes of information actually look like? I like to think of it in terms of the entire contents of the British library being created every single day, of which 80% of that information is unstructured, and 20% is structured sitting in organized warehouses. There is a link of a golden thread which ties together the unstructured information, and I believe that golden thread is the issue of location, because everyone and everything is similar. The ability to actually geocode that unstructured information gives us the opportunity to open up new insights which perhaps we've never understood before. And insurance fundamentally is principally all about location.