During the Spieker Point Inc. open house, Walter Schwabe from FusedLogic TV interviews Michael Johnson, Account Executive at AON REED about the importance of analytics in the insurance industry.
Walter Schwabe:
“We’re here at Spieker Point Software Engineering and Solutions at their open house and eighth anniversary. Welcome to FusedLogic TV. I’m your host Walter Schwabe. I’m joined with Mike Johnson of AON REED. Mike welcome to the show.”
Michael Johnson:
“Thank you.”
Walter Schwabe:
“Let’s talk a little bit about the insurance industry and how the insurance industry is currently using analytics regarding insurance placements.”
Michael Johnson:
“Well right from the sixteen hundreds insurers have been using analytics right from the Lloyds Coffee House’s insuring ships so it’s been integral to the industry right from the inception in the last fifty to a hundred years insurers have really kind of focused their analytics on market segments classes of business types of losses and that sort of thing and that’s been again very standard insurance brokers more recently particularly in the last ten years we’ve been trying to leverage our own data from our own clients to try to differenciate them and try to really use that to get the best possible pricing and that’s been really a variable side of the industry and not everybody is doing the same so that a major…”
Walter Schwabe:
“So that’s a bit of a competitive advantage for AON REED in that particular case is that generally what you’re saying?”
Michael Johnson:
“We’re the largest broker in Canada and we’ve got a lot of volume in various segments of business so we’ve been really working hard to leverage that data and we’ve got some internal proprietary databases that we use for that.”
Walter Schwabe:
“Very good. So let’s talk about the future then ok so AON REED it sounds like you’re blazing a bit of a trail there relating to I mean you did say back into the sixteen hundreds I think analytics would have been fascinating back then.”
Michael Johnson:
“I’m sure yeah. Very simple yeah.”
Walter Schwabe:
“But much simpler yes. So let’s talk about the future and what you see in terms of how this is going to evolve with respect to analytics in the insurance industry.”
Michael Johnson:
“Well businesses they want predictability and they want a smoothing of costs and we can’t always rely on industry data what’s broad in the industry does not always apply to an individual business and so the future of analytics is really taking data from our clients from our corporate clients that we work with and using that to help them manage risk and that can be looking at how much do they need to retain versus insure or that might be how much they might want to remove a whole class of business from their portfolio that’s really a you know the future of it will really be more specific to the corporation than using mass market data.”
Walter Schwabe:
“Mike thank you so much for joining us here on FusedLogic TV.”
Michael Johnson:
“Great thank you.”
Walter Schwabe:
“We’re joined by Mike Johnson of AON REED here at Spieker Point’s open house. I’m your host Walter Schwabe on FusedLogic TV.”