Today

• Using data to understand behaviors rather than prediction
• State Auto has committed to a Cloud-based approach and a new data lake to move forward, and will run off their legacy systems and data rather than trying to migrate
• The starting point should be getting the data architecture right first
• Why did they choose Amazon, and there are a few that they’ve shared that have been transformative
  • They have a customer-centric way of thinking
  • Product team mentality
• Thinking digitally is about thinking about how you consume data, not what paper you can get rid of

The Future

• Insurance is a unique industry – we have ~2,600 companies, and haven’t seen a consolidation of 80% in the top few firms (like the Auto, Airline, Banking, etc industries), so will that change?
• Our expense situation as an industry has to change, with 30% going to overhead before we’ve paid for or to handle a single claim – this is not sustainable and leaves the door open for disruption
• Data has transformed many things around us, so what will happen to carriers at some point when it really transforms us since the real data-based companies are consumer brands (Tesla, Amazon, Facebook, Google), not insurers
• The data is out there, and there are no more constraints on computational power, so what things will this unleash for our industry?
• Ecosystem approach to track and respond to risk specifically – companies working together around a key customer-facing brand to stop the loss rather than just respond to it

Parting Wisdom for the Future

• Getting the right leaders in place with the right mentality about people is really the most important piece of the puzzle