Data Analytics, Big Data, Business Intelligence, Data Science… These are all buzzwords that describe what algorithms can do with data. Most of the client, financial and administrative processes are now being digitised. As a result, the amount of data available for analysis is exploding. Data has become the primary source for determining client preferences, assessing risks, improving and automating business processes, measuring performance and developing new products and services. Data Analytics is the way to gain the competitive advantage in the digital age.
Data Analytics combines advanced methods and techniques, tooling, programming knowledge and data with domain knowledge. This creates data-driven understanding and identifies potential for improvement. By adding new data perspectives to existing ones, organisations gain surprising insights into areas including, for example, client behaviour, risks and opportunities, hidden costs and unexpected connections. This new playing field is of interest not only to insurers, banks, and pension funds but to every business.
Data analytics can be applied anywhere in the value chain of any organisation. Two important questions to ask are: what is the business concern or challenge? and what data is available now? We also see the following questions:
Knowledge of Machine Learning is not sufficient for the effective use of Data Analytics in the financial sector. While it’s possible to automate many things, this also creates risks. An actuary, however, has a great deal of added value thanks to their domain knowledge. For example, professional knowledge is vital in the choice of whether to take a specific variable with you. Using Data Analytics with no substantive knowledge can quickly lead to incorrect conclusions and a waste of both time and effort.
You should therefore use Data Analytics for your desired business insight. This allows you to work on an issue or research question without losing the overview in an abundance of data. Start with the available data and then see what other external data or insights you may need. Then you can determine the steps to the solution. This may involve data enrichment, dashboarding, the process of client journey mining, trend analysis, time series analysis, or developing a predictive model. Our Data Analytics experts have domain knowledge and practical experience in applying data-critical business processes. With this knowledge, we serve client relations in all financial sectors.
© 2023 AAA Riskfinance. All rights reserved.