AN ANALYTIC YET HUMAN DIGITAL TRANSFORMATION
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DIGITALLY DISRUPTING THE CANADIAN INSURANCE SPACE WRIT TEN BY
L AUR A MULL AN PRODUCED BY
JA K E MEGE ARY
APRIL 2019
03
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Gore Mutual Insurance may be Canada’s oldest property and casualty insurance firm but thanks to its latest digital transformation it’s more agile than ever 04
F
ounded in 1839 – 28 years before the founding of modern Canada – Gore Mutual Insurance is defined by its rich
history. The insurer has borne witness to two world wars, having pledged $50,000 and $100,000 to support the Canadian war effort in WWI and WWII respectively. The Canadian insurance company has also seen the advent of automobiles, offering automobile insurance for the first time in its centennial year, and then went on to help the victims of the catastrophic Grand River Flood. Later, in 2015, when new legislation offered the chance to demutualize, the firm decided against this, harking back to its long held desire to help communities in their times of need. Rooted in a tradition of courage and cooperation, Gore Mutual may be Canada’s oldest property and casualty (P&C) insurer but it isn’t bound by its historic legacy.
Gore Mutual employees on site
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In fact, in many ways, it has always been at the forefront of innovation. With almost two decades of experience at Gore Mutual, Jamie McDougall, Vice President, Business Intelligence & Analytics, has had a lasting impact on the firm’s digital and insurance footprint. Marrying his innate knowledge of the claims and underwriting business with a zeal for technology, he affirms that digitisation is helping the company “enable our broker partners in an increasingly digital world”. “We are using the w w w.go re mu t u a l. ca
Impacting Business Results For almost two decades, Earnix data scientists, financial experts, and software engineers have worked to create a comprehensive analytics software solution that solves some of the most difficult product, pricing and channel challenges faced by financial institutions. With Earnix insurers, lenders, and other financial institutions can now incorporate into their product, risk, and delivery systems the same advanced analytics that make personalization possible for the tech giants.
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Gore Mutual Insurance Partners with Earnix to Improve Analytic Agility and Speed Time to Market Gore Mutual, a Canadian mutual insurance company that has provided community protection to personal and business customers for over 175 years, has partnered with Earnix to provide the best service possible to their broker network and customers. As part of an initiative to better understand their end customers and improve responsiveness to a constantly changing market, Gore has partnered with Earnix to continually improve analytical processes and better operationalize the speed of rate deployment to the marketplace.
Analytical Process Improvement. Gore traditionally has done risk and demand modeling, in order to understand customer propensities and exposure and determine the appropriate costs of risk transfer. As Gore has advanced to managing this modeling process holistically, through the use of an end to end data management, analytics, and pricing platform, they have realized the ability to understand their customers at an even deeper level. Gore utilizes predictive analytics to derive insight from the information that they receive, and in turn support the effective underwriting of risk accepted. Understanding and applying risk and demand thresholds to customer segments enables a more effective insurance transaction for all stakeholders. Speed Rate Deployment. Managing the rate deployment process at organizations like Gore requires accounting for many variables. Price changes must be made, approval and governance of changes must be received, and proposed changes must then be deployed to the market. Gore knew that only an end to end system with real time rating engine capabilities, integration to touchpoints such as core and policy admin systems, and the ability to monitor rate change performance would be the best solution for them. Gore has turned to Earnix as a partner to provide an end to end pricing and personaliza-
tion platform, which takes their operationalization of analytics to the next level. Earnix will provide a real time rating engine that is connected to all of Gore’s core platforms – including policy admin systems in the back office, and customer interaction systems in the front office. The ability to develop, execute, monitor, and refine multiple pricing structures and strategies with high performance and reliability allows for improved governance and control. For Gore, the capability to deploy rates and rate changes in real time allows the pricing process to be operationalized very quickly. As Gore works to distribute these analytic and time to market improvements across the business, many other future advancements are being considered as well. Machine learning tools and capabilities are being researched, as a way to automate processes and understand their customer base even further. Being able to use the Earnix rating engine capabilities to take any analytical model developed by any tool and use it in a real time manner is also an exciting possibility. The partnership between Earnix and Gore is creating a strong foundation for future advancements, including the use of analytics and personalization in every project that Gore undertakes.
1839
Year founded
500
Approximate number of employees
08
explosive developments in digitization
the aim of making its use more
data, business intelligence (BI),
pervasive in the business, Gore Mutual
self-service analytics, machine
established BI and analytics as a sepa-
learning (ML) and artificial intelligence
rate entity and asked McDougall to
(AI) to enable a mature business
take on the role of Vice President of
transformation that is both genuine
Business Intelligence and Analytics. In
and thoughtful,” he explains.
doing so, Gore Mutual has sought to
The handling of data is nothing new
put more meaningful data, analytics,
for the insurance industry, but disrup-
insights and information at its leaders’
tive technologies are helping to
fingertips so that they can make better
uncover endless new opportunities.
decisions whilst enabling conversa-
Gore Mutual Insurance has identified
tions across the business. “Ongoing
BI and analytics as one such innova-
advances in data analytics allow us to
tion which is a “strategic priority”. With
be more agile and gather insights in
Gore Mutual employees assessing fire damage E XE CU T I VE PRO FI LE
Jamie McDougall Jamie McDougall is responsible for advancing Gore Mutual’s business intelligence, analytics and actuarial capability, which are central to the company’s ability to continue providing leading products and solutions to its customers. His previous experience as Gore Mutual’s Vice President of Claims and Vice President of Personal Insurance are key to his current role, which also involves leadership in the implementation of major data and systems transformation across all lines of business. Prior to joining Gore Mutual, he spent several years as a Management Consultant in process improvement and performance management with a boutique consulting firm and completed his MBA with the Haskayne School of Business at the University of Calgary.
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TRANSFORMING THE INSURANCE WORLD
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FROM INFORMATION TO INSIGHT What gives Opta Information Intelligence a competitive edge in the market? What makes it unique? I believe our number one competitive edge is that our people possess an extraordinary amount of information about the Canadian market and specifically the Canadian insurance industry. In addition to this, we’ve also amassed the largest property data set in commercialized property. By utilizing the wealth of our dataset and our analytical capabilities, as well as our ability to understand the Canadian insurance market we have a unique perspective in the market. What advantages does the company’s technology offer? What outcomes can customers expect? We offer superior property information intelligence for underwriting purposes. Canada is the second largest country in the world; there are varying degrees of elevation, areas where there is floodplains or unprotected fire zones and then there are urban centres which have their own risks. We understand the Canadian geography and are the number one data provider to help organizations turn this into actionable insights. How has Opta Information Intelligence supported Gore Mutual Insurance in its latest digital transformation? Gore Mutual Insurance has been a very strong partner and believer in Opta’s solution. The company has also been a very helpful co-development partner in services that we’ve brought the Canadian market such as iClarify, which is the number one personalized property under-
writing quoting tool in the country. With Gore’s digital transformation, I believe that we were able to understand its unique position in the Canadian market place and respond with solutions in a customized fashion that help improve efficiency and drive improved underwriting results. Could you provide another example where Opta Information Intelligence has helped to enable digital transformation? When the Fort McMurray fire happened in Canada, nobody was able to really understand which properties were total loses and damaged or which ones weren’t. This was because you weren’t able to get on site for weeks after the fire. We were able to utilize advanced artificial intelligence (AI), satellite imagery and train computers to recognize which homes were lost and how much those losses would be. We hired a satellite to go over the area and within days of the fire, we were able to deliver a solution which demonstrated to a lot of insurers, the power of artificial intelligence, the potential of data and the realm of the possible. What does the future hold for Opta Information Intelligence? Are there any upcoming developments we should watch out for? We’re exploring opportunities within Fintech and Municipal markets within Canada. Our massive amount of data and professional attributes can offer new insights to different markets but ultimately our number one goal is to always be a relevant and meaningful partner to our Canadian insurance customers.
CLICK TO WATCH : ‘GORE MUTUAL’S DISCOVERY CONCOURSE TOUR’ 12 the business,” says McDougall. “It
digital transformation efforts. “We’re
helps us improve our broker experi-
heavily focused on creating curated,
ence and the experience of our
quality data assets to build trust in the
consumers. We’re becoming more
information,” says McDougall. Forging
proactive and not just reactive. We are
a promising partnership with Informa-
driving improved claims and underwrit-
tion Builders, the Canadian business
ing operations,” he adds. “The new
has worked hard to master its data
entity is ensuring clarity of focus. It
and build quality data assets. “We
indicates to the organization that this
utilized their platform as a way to
is an enabling set of technologies and
distribute information and insights to
we recognize their value in the
the appropriate individuals so that we
insurance space.”
can make better and more informed
Good BI requires good data – and
business decisions,” he adds. “It has
this was top of the agenda for Gore
absolutely delivered concrete value to
Mutual as it embarked upon its latest
our consumers, to our brokers and to
our business.” This has allowed Gore Mutual to provide more sophisticated pricing to the market, whether offering auto insurance or even flood and earthquake insurance. Gore Mutual has also developed close ties with integrated software company Earnix, using its software to further empower the organization. In the fast-moving world of technology, close collaboration is everything. Championing this spirit, last year Gore Mutual built its
“ We’re becoming more proactive and not just reactive. We are driving improved claims and underwriting operations” — Jamie McDougall, Vice President of Business Intelligence and Analytics, Gore Mutual Insurance
Discovery Concourse in its campus
Gore Mutual – Innovation Lab
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Claims knows where to cut leakage, tighten steps, and improve service
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“ In our business, responsiveness to the consumers’ needs is critical: we want to be there when they need us” — Jamie McDougall, Vice President of Business Intelligence and Analytics, Gore Mutual Insurance
to transform with it, not only to remain commercially viable but also to protect customers. “In our business, responsiveness to the consumers’ needs is critical: we want to be there when they need us,” notes McDougall. “If we know that a dramatic storm is coming or a forest fire is burning, we can be proactive and identify the exposure, policies, and those consumers at risk. At times we have proactively called brokers, identified the consumers in their portfolio that are at risk and then proactively contacted them to ensure that they’re okay and that they didn’t
in Cambridge, Ontario. This is a spot
experience loss. This data offers
where continuous innovation seems to
transformative value that we can bring
be in the air and where the hands-on
to the business.” As well as using its
creation of insurance solutions is
own analytics, Gore Mutual has
commonplace. Featuring a high-tech
worked shoulder to shoulder with Aon
innovation lab, McDougall says this
to try and understand the “complexity
area acts as a hub where “brokers,
of catastrophic loss protection” when
insurtechs, reinsurers, technology
creating models for flood or earth-
partners and Gore Mutual employees
quake risk. The firm has also forged
from different departments can
ties with DMTI for detailed location
collaborate on solutions to solve
information, which McDougall
industry issues”.
describes as “a quality data provider”.
This proactive stance is a must in the
Another key insurance industry data
insurance world. The nature of risk is
partner, OPTA Information Intelligence,
ever-changing – and insurance needs
has enabled Gore Mutual to improve w w w.go re mu t u a l. ca
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Gore Mutual – Discovery Concourse
Model with confidence in Canada Impact Forecasting’s enhanced flood model for Canada, covering both fluvial and pluvial flood perils, enables insurers to delve into the latest scientific data to support both primary underwriting and portfolio risk management. Moreover, high resolution flood hazard and risk maps provide detailed and methodologically-consistent insights into flood risk across populated Canada. How can YOU benefit from partnering with Impact Forecasting to tackle risk assessment for this increasingly important peril? NEW! We are working on an earthquake model in collaboration with Global Earthquake Model foundation to leverage the state-of-the-art local science and data to complement our suite of products available for Canada – watch this space! If you would like to demo our catastrophe modelling solutions and risk mapping products, please contact sarka.cerna@aon.com
17 its assessment of risk through advanced information tools as well as through OPTA’s developing of advanced analytics and modelling. Gore Mutual’s openness to enhancing its abilities through quality partnerships is a credit to the insurer and a recognition that in advanced analytics there are many paths to success. As well as industry partnerships, McDougall is keen to shout about Gore Mutual’s remarkable network of brokers as well as its internal team. Attracting and retaining talent may be a challenge for some businesses, but
“ Our value proposition for attracting and retaining talent is about creating a very complete and holistic value proposition for employees” — Jamie McDougall, Vice President of Business Intelligence and Analytics, Gore Mutual Insurance w w w.go re mu t u a l. ca
at Gore Mutual McDougall asserts that individuals seeking “breadth of scope, accountability and ownership” are easily attracted to the firm. “We’re large enough to be dynamic and creative,” he adds. “Our value proposition for attracting and retaining talent is about creating a very complete and holistic value proposition for employees.” McDougall has evidence to back up this claim: last year Gore Mutual was awarded for being a ‘Best Workplace in Canada’ and also 18
recognized as a ‘Best Workplace in Financial Services and Insurance’ by
“ I’m confident that Gore Mutual will continue to evolve to become an increasingly analytic yet always human business” — Jamie McDougall, Vice President of Business Intelligence and Analytics, Gore Mutual Insurance
Gore Mutual – Cambridge Campus the Best Workplaces Award and Great Place to Work® Canada respectively. In February 2019, the business was named an ‘Employee Recommended Workplace’ for putting employees’ health, wellness and workplace experience at the forefront of its operations. McDougall is confident that 2019 will remain a banner year for the firm as there has been a “resurgence or recognition of the mutual proposition”. On the road ahead, Gore Mutual is set to keep its finger on the pulse of the
19
latest technology trends as it constant-
“We continue to grow and invest in our
ly evolves and grows into a leading
people, our business and our commu-
mid-market modern mutual insurance
nities. I’m confident that Gore Mutual
company. Yet it’s clear that despite this
will continue to evolve to become an
bright future, the firm won’t forget its
increasingly analytic yet always
historic legacy any time soon. “Gore
human business.”
Mutual will be 180 years old this year and we’re very proud of our history,” concludes McDougall. “The organization started as a district mutual fire insurance company and has become ingrained in the communities where we live and work – it’s part of our story.” “We’re a modern mutual,” he asserts. w w w.go re mu t u a l. ca
Gore Mutual Insurance 252 Dundas Street. N, Cambridge, Ontario N1R 5T3, Canada T +1-800 265 8600 www.goremutual.ca