Software for data analysis and accurate forecasting
Forecasts for Certain Profits
About Blue Yonder
Thanks to its highly successful NeuroBayes® solution, Blue Yonder is a leading
provider in the fields of forecasting and data pattern recognition, or “predictive
analytics” for short. With this solution, companies can use “Big Data,” the
enor-mous quantities of data that are generated today, to gain valuable insights for
their corporate management. Such insights help companies make their
busi-ness processes profitable and prepare them for the future, as well as
transform-ing the vast amounts of data accumulated into corporate capital. The origins of
NeuroBayes can be traced back to experimental particle physical laboratories at
research institutions such as CERN, the world’s largest particle accelerator, where
quantities of data in the petabyte range accumulate every second. Companies
use NeuroBayes to great effect for purchasing, marketing, material planning,
sales, and production control. Well-known customers of Blue Yonder, which was
established in 2008, include BGV/Badische Versicherungen, Central, EOS, Bürgel,
and OTTO. The company’s software has already won the prestigious Data Mining
Cup on three separate occasions, as well as the CyberChampions Award 2011/12.
NeuroBayes is self-learning and automatically detects changing basic conditions,
so that it can predict precise trends and developments in real time using
cloud-based technology. This makes Blue Yonder’s Predictive Analytics Suite a unique
system.
“The only man
who behaves sensibly
is my tailor;
he takes my measurements anew every time
he sees me, while all the rest go on with their
old measurements and expect me to fit them.”
George Bernard Shaw
Analyze risks and sell insurance coverage intelligently
According to figures released by the German Insurance Federation (GDV), of the 809 insurance companies that were active in Germany in 1980, only 582 were still in business by 2010. During the same pe-riod, the number of policies soared from fewer than 250 million to approximately 450 million, demonstrating a market that has massive potential. These vast amounts of data are hiding many trend-setting insights for these companies.
However, consolidation processes are affecting every single insur-ance division. In 2009, almost 50% of the overall market share was split among the five largest health insurance providers. The market is completely saturated. International companies are now trying to break into the German market or are improving their own market share. At the same time, the amounts being paid out by the insur-ance industry are also increasing. In 2010, the claims paid out by property and liability insurance providers amounted to EUR 43 bil-lion, a 3.3% increase compared to the previous year.
Competition is tough, and a new factor is also emerging: Many insur-ance customers putting their cover together individually, frequently with the help of the Internet. They rely on cost-effective standard offerings, accepting the fact that they are purchasing nothing more than basic coverage for the basic premium. At the other end of the scale are the most demanding customers. They are not looking pri-marily at price, but rather expect policies that are tailored specifically to their needs – and they also demand top service via all channels, preferably around the clock.
Fine tailoring in, safety pins out
Measuring each individual, again and again when needed: That is exactly what a growing number of customers expect. Yet how is this possible with numbers like these?
Approximately 94 million life-insurance policies Almost 65 million health insurance policies
Nearly 293 million property and casualty insurance policies, of which approximately 100 million are for automobile insurance alone And individual customers are only one of the factors that must be taken into account. Products, sales channels, and service compli-cate things further. Entire departments, at least at the large insur-ance companies, are using mathematical and statistical methods to search for optimal solutions in all of these areas. They analyze their immense stocks of data (Big Data) with future-oriented forecast models, taking advantage of the capabilities of predictive analytics. With its NeuroBayes solution, Blue Yonder provides the industry with a unique Predictive Analytics Suite that is both self-learning and able to provide forecasts for all relevant issues in real time. This enables insurance companies to recommend to their customers ex-actly the products they need. They offer fair premiums because they can determine their risk of losses precisely, and they can therefore improve their customer base and optimize their cost structure. Use this brochure to find out more about the advantages of using Neu-roBayes, especially for your area of operations and your industry.
Tailor-made for the masses
Congratulations, it’s a girl! Is the insurance coverage sufficient? Offer the young family appropriate additional products.
Life begins in earnest. The customer’s education is complete. His cars are newer and more expensive.
You are the risk expert. Talk to your customer right away about the most important issues:
• Disability • Retirement • Life insurance Whatever your customers’ individual insurance situation, many
people do not like thinking about this topic, so they are grateful for recommendations you make that “make life easier.” With Neu-roBayes from Blue Yonder, you can identify each individual customer’s current life situation in real time. You can analyze each customer’s potential per division and overall and provide him with offers tailored specifically to his needs. Inexpensive single premium or family insurance policy – there is a right time for everything. Does he have enough liability insurance coverage
and does his property insurance coverage really cover all possi-ble damage in his new home? This is precisely how you can tap into cross-selling potential across all divisions. You can also ac-curately estimate the risk of policy cancellation and initiate mar-keting measures appropriate to the customer’s value in order to counteract the possibility of defection. By analyzing your Big Data continually and automatically, your attention will also be drawn to fraudulent activities quickly, allowing you to reduce related costs effectively.
There is a
right time
for everything –
Customer Lifecycle Management
Behind the wheel at last!
You offer the new young customer an automobile insurance policy at realistic but fair rates. This could be the beginning of a lifelong relationship…
Your own four walls.
The desire for security and to minimize risks increases: In the next ten years the software predicts outstanding sales from this customer. However, the customer will increasingly compare offers and a competitor makes him a lucrative offer aimed primarily at homeowners. The risk of policy cancellation increases.
A place to yourself.
Time for the first property insurance policy? The topic of individual liability insurance should also be addressed now.
But there’s no doubt about it: You have to hold onto this
customer. So get busy – offer your regular customers
NeuroBayes lets you calculate individual, risk-aligned premiums for each of your customers across all divisions within the insur-ance sector. Life insurinsur-ance providers are able to set their pre-miums with great efficiency. For companies active in the health insurance sector, the software uses initial diagnoses as a basis for providing them with individual predictions featuring a prob-ability distribution of the costs they will incur – broken down year-by-year.
Accurate claims forecasts are a key element for creating an opti-mal premium structure for customers and in risks. From a com-petitive perspective, these forecasts are therefore an essential part of every property and casualty insurance policy, making it more important than ever not to overlook even the tiniest of clues. Our Predictive Analytics Suite analyzes data obtained from multiple internal sources in real time, as well as external influence factors. And the number of factors we can feed into the claims forecasts is unlimited.
Furthermore, our software also reveals relationships between your data that may have gone unnoticed until now:
Age of the vehicle
Age of the vehicle when purchased Brand
Place of residence Home ownership Regional structure
For a risk-driven sector such as the insurance industry, excess caution can mean stagnation. Over-confidence, on the other hand, would be suicidal. NeuroBayes allows insurance providers to find exactly the right balance and take sound precautionary measures. Blue Yonder’s predictive analytics software gives
you the ability to assess the probability of occurrence and relevance of a risk for your company with immense accuracy.
At the same time, the risk analysis also identifies any interconnec-tions that exist between your individual risks.
Property insurers use NeuroBayes to predict the risk of loss and policy cancellations.
Life insurance and health insurance providers use NeuroBayes as a basis for assessing health and longevity risks.
You manage your entire company in accordance with the risks with which you are faced, optimizing your reinsurance policy in the same process. That means that there is yet another side to us-ing NeuroBayes for your risk analyses: lookus-ing after yourself.
The real deal –
Claims forecasts using
Blue Yonder
Claims forecasts, risk and customer analyses: there is hardly any other sector where knowing the future is just as important as knowing about the past. This is the only way in which compa-nies can determine premiums that are both fair and attractive, yet lower their risk of losses at the same time. Their revenue increases and their cost structure is optimized. Leaving every-thing to fate would be fatal. NeuroBayes answers every
sin-gle question that is relevant in terms of the strategic control and business activities within your company. The origins of
the software can be traced back to experimental particle physi-cal laboratories at research institutions such as CERN, where millions of data records must be processed simultaneously. The self-learning software solution combines statistical methods with neuronal networks, making it far superior to alternative methods. As well as precise, scheduled details that apply at the individual policy level, it also provides users with occurrence probabilities, thereby enabling them to use the software with the utmost confidence and security.
And as the amount of data that can be input into the software is completely unlimited, companies are also able to gain more detailed insights into their overall corporate strategy, as well as long-term forecasts:
How successful is this particular method of treatment? What side effects are likely to occur if this medication is used? What losses are expected for the future and how do these
affect costs?
Other findings that are crucial for corporate policy or lobbying
Everything has its price –
individual premiums
Leaving nothing to chance –
Simulations using NeuroBayes
“Things which we fail to calculate
we call coincidence.“
Albert Einstein
Just the right moment –
risk management
NeuroBayes –
Forecast software for
auto-mobile insurance companies
NeuroBayes gives you a clear overview at all times, allowing you to gain valuable insights from your mass data:
By creating claims forecasts based on our predictive analyt-ics software, automobile insurers can improve the attractive-ness of their offerings and therefore increase their premium volume considerably, while at the same time reducing their claims rates disproportionately
The premiums you set are in accordance with the risks
en-tailed, allowing you to offer highly competitive rates
You detect any risks of policy cancellations in good time, counteracting these with specific marketing measures You are able to forecast major claims with great accuracy,
feeding these into your reinsurance policy
At the same time, you use all of the available sales channels with a specific aim: You offer low basic premiums via your online portal – a highly effective tool for winning over new customers. You may then choose to take mailing actions or hold personal consulta-tions to sell better, more individual products or to make the most of your cross-selling potential.
NeuroBayes –
Forecast software for
health insurance
Whether private or publicly-funded: Being able to weigh up the risk of illness and therefore the risk of financial loss is critical for the success of your business. That’s why NeuroBayes provides you with an accurate probability distribution of the costs
you will incur during the coming year. Using a person’s
cur-rent state of health, ascertained during initial diagnosis, as a ba-sis, you can draw up individual forecasts for the amount you will have to pay out, quoted in relation to any period you require. This allows you to specify suitable risk surcharges and thus re-duce your costs. You are able to predict your payment expenses:
At the premium level At the gender level At the age level
You can also include policies that have been canceled in these forecasts. NeuroBayes enables private health insurance com-panies to determine the best model possible for predicting their expenses. Furthermore, Blue Yonder’s Predictive Analyt-ics Suite also provides you with general health-related infor-mation, such as risks relating to side effects or data regarding medical research data. And as our self-learning software is not simply a black box, you can prove – whenever you may need to – that the way in which you have calculated your premiums fully complies with the German Federal Data Protection Act (BDSG), and that you have fulfilled the requirements of all cur-rent data protection guidelines.
There is only one important question as far as life insurance firms are concerned: What is the life expectancy of each of my insured customers, and how will this number increase over time? Neu-roBayes lets you extend the mortality table traditionally used in this sector by including a forecast that takes every available piece of information about the customer into consideration, including any relevant external factors such as health risks and the effects of these. This forecast is updated constantly. It also takes into ac-count the increase in life expectancy that results from the cus-tomer growing in age, for example.
You can create attractive offers for private retirement plans NeuroBayes allows insurance providers to set their premiums
fairly and efficiently: the key to offering competitive rates
You get to know your customers so well that you can offer them
products from other divisions
NeuroBayes calculates the exact deal-closure probability for products offered in cross-selling
You optimize risk management, including your reinsurance
NeuroBayes –
Forecast software for
life insurance
NeuroBayes –
Forecast software for
online insurance providers
Any company choosing to offer its insurance products on the Internet can quickly end up in a price war that ultimately no-one can win. Regardless of whether you are purely an online insurance company or a multi-channel company: NeuroBayes
also lets you offer premiums on the Internet that are always risk-aligned. Our self-learning Predictive Analytics Suite ana-lyzes the premium characteristics of online requests in real time. This means that you are able to respond to requests in
no time at all, offering potential new customers premiums that are both individual and fair. Our self-learning software quickly reveals even more detailed insights gleaned from the mass of data fed into it. You constantly optimize your premiums even further, modifying and shaping your range of products to suit changing requirements. The forecasts you have at your dispos-al dispos-also provide you with a superb pool of data that you can then use for specific marketing campaigns.
Property insurers generate accurate claims forecasts and optimize their risk management
Individual premiums reduce costs and strengthen their competitive position
In using NeuroBayes-based Customer Lifecycle Management, insurance companies offer products that are perfectly matched to suit customers’ current circumstances, thereby avoiding the risk of policy cancellations
Companies in the automobile insurance sector improve the attractiveness of their products and therefore the level of premiums considerably
Companies in the automobile insurance sector achieve above-average reductions in their claims rates
Private health insurance providers forecast the exact costs incurred for each patient over the coming years
Health insurance providers analyze and compare different methods of treatment and their success
Online insurance companies react to online requests in real time by quoting individual premiums
Result:
Increased profits, reduced costs –
Why using NeuroBayes pays off
Use your data to
navigate to success
Still have any unanswered questions? Looking for a partner who can help you develop forecasts that are specifically tailored
to your own sets of data? Contact Dunja Riehemann (Tel +49
(0)721 383 117 36, [email protected]) to join us in this visionary venture.
For more information, visit us at: www.blue-yonder.com
Blue Yonder UK Limited 6-9 The Square Stockley Park Uxbridge UB11 1FW United Kingdom Phone +44 (0)203 008 717 0 Fax +44 (0)208 610 606 0 E-Mail [email protected] www.blue-yonder.com Blue Yonder GmbH Ohiostraße 8 76149 Karlsruhe Germany Tel +49 (0)721 383 117 77 Fax +49 (0)721 383 117 69 E-Mail [email protected] www.blue-yonder.com BY_062014
