Data management is one of the most important areas of focus for insurers in an ever more interconnected world. Data, to an insurer, is as important as oil to an energy producer – it’s the lubricant that drives performance. But, it is also something that we should all be able to access, as Ali Shahkarami, AGCS’ first-ever Chief Data Officer, explains.
1. Why is data management important for a global insurer like AGCS? What is your 30-second elevator speech to explain AGCS’ data strategy?
Data and analytics are of a vital importance for the future success of AGCS. Not only for reporting and the day-to-day steering of our business but also to discover new growth opportunities. Insurance business by nature is heavily data-driven. It is to an insurer what oil is to an energy production firm. To get the full potential benefit out of it, you need to refine it. That is exactly what we are trying to do with our data management. Given the scale and the global nature of our business, AGCS has a vast amount of valuable data to tap into. However, to get the most out of it, we need to make sure all our data sources are connected and we need to ensure that those sources offer the full picture.
On top of that, data should be easily accessed and analyzed. Our data offers a unique viewpoint on global risks which support our business and our clients. We have the responsibility to steer the data topic holistically, drive it forward in support of AGCS’ strategy and align our various initiatives so we really get a data-first decision culture at AGCS. My team will also make sure we are aligned with and support the overall Allianz Group data strategy.
2. What are the main areas you intend to focus on as you develop and deliver the data strategy of AGCS?
I see three areas where my team and I want to focus on. First of all, we have to strengthen our data foundations. We have a new global data warehouse in place which brings data together from our source systems in real time. More and more source systems need to be connected to this warehouse and their data needs to be checked for quality and made ready for use. Our second priority is to improve the accessibility of data and ease of reporting for our colleagues in various business functions. Lastly, we aim to further strengthen our capabilities in advanced analytics technology that allows us to create value from our data for our clients, AGCS and Allianz.
Data and analytics are important drivers for the future success of AGCS and form an essential part of the AGCS transformation. This has been recognized by the AGCS Board with the creation of the Chief Data Officer role. The overall aim is to implement a data-first decision-making culture at AGCS with five immediate focus topics:
- Strategy: Aligning data initiatives, tools and investments around the business outcomes guided by the business strategy.
- People & Culture: Ensure AGCS has the capabilities needed to deliver the data strategy and analytics and create a data-first decision-making culture.
- Governance: Further empower and expand AGCS’ data governance framework to ensure the fidelity of the data and outcomes of algorithms powered by it.
- Technology: Align technology, tools and architecture to support the overall data and analytics strategy.
- Solutions and Analytics: Develop and expand capabilities to deliver business-ready solutions and align the activities and efforts of the existing experts within the company.
3. Part of your charge is to implement a data-first decision-making culture at AGCS. What does this entail?
In the past it happened that business decisions were at times driven by instinct as the availability of data and the trust in technology was limited. However, this has changed and good data management is a key lever for any organization that wants to be successful in the future. It is an integral part of our new strategy and we continue to invest in new technologies and expand our team of data scientists. It is, however, not just a question of increasing investment in technology and data and advanced solutions need to grow for a real cultural acceptance and expectation that data should be the main driver for decisions within the organization.
4. Can you provide some examples of how data analytics can help improve claims/underwriting behavior?
Of course, we are already using data in all aspects of our day-to-day business: In underwriting, we use data analytics by combining external and internal data sources to improve risk selection and assessment. Within financial lines insurance, for example, we are currently working on the next generation of portfolio steering through data analytics. On the claims side, we want to optimize settlements via predictive analytics.
Through data modelling, we want to achieve a leaner decision-making process which aims for the best outcome for our clients and for AGCS.
Biography - Ali Shahkarami
Before joining AGCS, Shahkarami held various positions as risk modeler and obtained a PhD in Structural Engineering from the University of British Columbia (Vancouver, Canada). As Chief Data Officer for AGCS, Shahkarami is responsible for the development and the delivery of AGCS’ data strategy. Shahkarami joined AGCS in 2012 as Head of Catastrophe Risk Research, where he was responsible for research and development activities to capture risks of man-made and natural catastrophes. In 2018, he moved to XSE, within AGCS, to become the Global Capability Lead on Underwriting where he led activities on the digital transformation of client-facing functions.
Download Global Risk Dialogue Winter/Spring 2021
This article is part of the our Global Risk Dialogue. Appearing twice a year, Global Risk Dialogue is the Allianz Global Corporate & Specialty magazine with news and expert insights from the world of corporate risk.
Newsletter
Keep up to date on all news and insights from Allianz Commercial
