Managing supply chain risk
A new report from Accenture notes that managing risk in the supply chain is critical because of its wide ranging impact on the business. Often though businesses become disillusioned as their ROI is lower than expected and cost appears to outweigh benefit. In the survey, a small number of respondents posted ROI in supply chain risk management at over 100 per cent, so what are they doing differently? Generally, taking it seriously and putting it at the heart of the business with senior executives having a central risk management function and committing investment to it. Read the full story.
Canada’s wacky weather sees insurance premiums soar
Some areas of Canada are seeing sharp increases in home insurance premiums due to the proliferation of freak weather conditions. The past couple of years have seen a range of unusual weather from hail storms to exceptionally cold spells, and they all add to the volume and cost of insurance claims, with Alberta particularly affected. Homeowners and renters are facing sharp rises in their premiums, even if they haven’t made any claims. One insurer says that a typical renter in Calgary can expect to pay 30 per cent more for their home insurance without making any claims. If the worst happens and claims are made, some renters are seeing premiums soaring by 200 per cent or more and increased deductibles. That all presumes that insurance is even available; in some areas it is not possible to get flood insurance for example. Read the full story.
Insurance professionals to discuss data analytics
The Analytics for Insurance conference in Europe next month will bring together 200 insurance professionals to explore how analytics can be used by underwriting and claims teams to reduce costs, create operational efficiencies, detect more fraud and price more accurately. In a recent survey by FC Business Intelligence, 72 per cent of insurers listed analytics as the biggest game-changer for their business in 2014-2015. Paul Hately from Swiss Re, one of the companies who will attend the conference says: “The benefits of analytics are enormous! Data can describe, admittedly not perfectly, natural states and how they change. Analytics can be used to detect patterns in data and then to predict outcomes. The benefits come from using these insights to enhance what you already do, or working out if what you are already doing is good enough.”
