IT Pack Manchester: Making the most of Big Data

Brokers have a lot to learn from insurers about Big Data, according a group of young brokers at the second IT Pack event.
Held this month in Manchester, the event brought together the region’s up-and-coming brokers to debate the pros and cons of Big Data.

Brokers are lagging behind insurers and failing to use Big Data to its full potential, they said. “The question is no longer how you store it but how you use it,” said Swinton Commercial account executive Jack Seton. “You’ve got to strip it down, structure it, get rid of all of the unnecessary noise and make it into data that is useful.”

Brokers can use data to help evaluate client risks, customise pricing, fight fraud and target new business, he said.
“Insurers are spending a lot of money on Big Data, as they are the ones that pay out for a claim,” Seton said.

“Brokers also have a responsibility, however, to challenge insurers on pricing decisions.”

Griffiths & Armour insurance broker Stuart Beards agreed. “It’s about knowing your customers and why they come to you,” he said. “Do they want price? Do they want a relationship with a broker? Or a brand? You need to profile your clients so you can target business appropriately.”

Impact on underwriters

Aviva head of underwriting and trading North West Tracey Threlfall said Big Data was changing underwriting practices, enabling insurers to better predict risk.

“Historically, we would take a view of a risk based on experience,” she said. “That’s still relevant, but we’re also using masses of data to give us a sophisticated starting point for our pricing.”

Commenting on using data to fight claims fraud, Rigby Insurance senior account executive Kieron Cox said brokers should have greater access to databases such as CUECheck, which provides access to motor, home and personal injury databases, and DVLA records.

“This data must be rolled out to point-of-sale people, so we can improve the custom model of insurance and clamp down on fraudulent claims,” he said.

Role of telematics

Bluefin account handler Nicholas Pagett said telematics and smartphone apps would also be used in the fight against fraud.

“Telematics’ future is in providing real-time data on vehicles to identify fraudulent claims - you know how fast the car was going at the time of an alleged accident, what angle it hit the vehicle, where the car was.

“You then combine that information with the driver’s claims and driving behaviour, enabling you to prove whether a claim is fraudulent or not straight away.”

Insurance Times and Aviva’s IT Pack events are part of a nationwide search to find the rising stars of the broking industry.
Seton’s leadership skills and industry knowledge stood out at the Manchester event. He will go on to compete in the October finale for the title of IT Pack member of the year.

Aviva UK head of performance management and marketing Clark Ross said: “The judges felt there were two standout stars - Jack Seton and Nick Pagett.

“Only being able to send one through to the next stage was tough, but Jack caught our eye in the group challenge. He set the pace getting to grips with the topic and working with his team. He also stood out in the Q&A and showed a real honesty.”