To effectively acquire customers, offer personalized products and provide seamless service requires careful analysis of data from which insights can be drawn. Yet executives cite data quality (or lack thereof) as the chief challenge to their effective use of analytics. (Insurance Nexus’ Advanced Analytics and AI survey). This may, in part, be due to the evolving nature of data and our understanding of how its changing qualities affect how we use it -- as technology changes and different data sources emerge, the characteristics of data evolve. More data is all well and good, but more isn’t simply…more. As new and more contextual streams of data have become available to insurance organizations, more robust and potent analytical insights can be drawn, carrying with them huge implications for insurance as a whole. See also: Data, Analytics and the Next Generation of Underwriting   Insurance Nexus spoke to three insurance data experts, Aviad Pinkovezky (head of product, Hippo Insurance), Jerry Gupta (director of group strategy, Swiss Re Management (US)) and Eugene Wen (vice president, group advanced analytics, Manulife), for their perspectives on what each generation of data means for the insurance organization of today, and how subsequent generations will affect the industry tomorrow. See full whitepaper here. While there is disagreement regarding which generational bucket data should fall into, current categorizations appear to be largely aligned. Internal, proprietary data is generally agreed to form first-generation data, with the second-generation comprising telematics and tracking device data. There is some contention over the categorization of third-party data, but these are largely academic distinctions. Experts agree that we are witnessing the arrival of a new classification of data: third-generation. As Internet of Things (IoT) data becomes more commonplace, its incorporation with structured and unstructured data from social media, connected devices, web and mobile will constitute a potentially far more insightful kind of data. While this is certainly on the horizon, and has been successfully deployed with vehicular telematics, using "IoT, including wearables, in the personal lines space [and elsewhere], is still not widely adopted,” says Jerry Gupta, senior vice president, digital catalyst, Swiss Re. Yet, he is confident that third-generation data will "be the next wave of really big data that we will see. Wearables will have a particular relevance to life and health products as one could collect lot of health-related data." Download the full whitepaper to get more insights. Despite this promise, there are significant roadblocks to effectively leverage third-generation data. According to Aviad Pinkovezky, head of product at Hippo Insurance, the chief problem is one of vastly increased complexity: “This sort of data is created on demand and is based on the analysis of millions of different data points…algorithms aren’t just generating more data streams, they are taking new data, making decisions and applying them.” Clearly, this requires a change in how data is handled, stored and analyzed. Most significantly, third-generation data has the potential to change the nature of insurance. See also: 10 Trends on Big Data, Advanced Analytics   Given that data is no longer the limiting factor for insurance organizations, our research suggested five areas on which insurance carriers should focus to turn data into real-time, data-driven segmentation and personalization: cost, technical ability, compliance, legacy systems and strategic vision. A challenge, certainly, but the potential rewards to both insurance carrier and insureds are hugely promising, especially the change in relationship between carrier and insured. The potential to not only predict, but mitigate, risk has huge implications for insurance. Efficient, accurate and automated data gathering is a clear benefit for insurance carriers, and the potential to provide value-added services (by mitigating risk altogether) greatly enhances their role in the eyes of the customer. Measures that reduce risk to the insured increase trust and strengthen the bond between the carrier and the insured. Customers are less likely to view insurance as a service they hope to never use but, rather, a valuable partner in keeping themselves secure, both materially and financially. The whitepaper, "Building the Customer-Focused Carrier of the Future with Next-Generation Data," was created in association with Insurance Nexus’ sixth annual Insurance AI and Analytics USA Summit, taking place May 2-3, 2019, at the Renaissance Downtown Hotel in Chicago. Expecting more than 450 senior attendees from across analytics and business leadership teams, the event will explore how insurance carriers can harness AI and advanced analytics to meet increasing customer demands, optimize operations and improve profitability. For more information, please visit the website.

First, my heart is with small agencies and their owners. They have a tough time wearing so many hats. Delegation only works when other people are around to wear the hats. Agencies everywhere are pressured by carriers to write more business, but small agencies have limited resources when the owner is the key producer, the HR expert, the IT expert, the accounting expert and the chief bottle washer. I appreciate how personal small agencies are with clients. That is important to clients and often is a key reason the owners are even in the industry. This reason, among others, creates an interesting and often rewarding life for agency owners. I appreciate small agencies so much, I even made a promise to a mentor 25 years ago that, as I succeeded, I would not forget my roots by leaving behind small agencies as my practice grew. Sometimes small agencies are challenging entities with which to work. The situation is commonly this:

1. Like all small businesses and small accounts, they usually need more help but will not pay for it. They will not even ask for assistance, and often, if they are willing to ask and are willing to pay, they do not know for what to ask.
2. When these small agencies need help due to an E&O claim or another kind of legal situation or they need a valuation of their agency for a sale, merger or estate purposes, their data, their accounting methods and their contracts are so often missing or so disorganized that simply making sense of their situation is a huge challenge in and of itself. Quite often the situation borders on a fiasco trying to find a time to occur.

See also: Expanding Into Small Commercial   Here are some examples specific to accounting:

• Their accountant does not know anything about insurance agency accounting. Their ignorance has made a hash of the agency's records by trying to fit the square peg of agency accounting methods and systems into regular accounting methods.
• The accountant not knowing agency accounting has encouraged the agency owners to withdraw too much cash, causing a working capital shortage or worse, a trust account shortage.
• The agency has not maintained its accounting entries. When a valuation or audit is completed, or even when it is time to convert data from one system to another, and the accounting entries are poor to nonexistent, two outcomes are certain: 1) The owner is about to spend a lot of money to fix them; 2) The owner will look like a fool.
• When the data is a mess but the agency owner tells the appraiser, the attorney, the IRS or the judge: "Just trust me when I tell you what the numbers really are," the silence will be deafening. To many readers, this reads like a ludicrous statement, and it is, but this is verbatim what I have heard agency owners say numerous times. Another version is, "Don't pay attention to my financials. They are wrong. Here, I’ll tell you what the right numbers are." I cannot begin to write how many times I have heard agency owners speak some version of these lines. What is even more incredible is that they actually think, firmly believe, the other party is going to trust them! They actually get upset if the other party does not just take their word. They have no idea how bad they appear when they make these statements.
• The agency has been creative in how it pays people, including ex-owners. This appears when they buy the agency and want to deduct the price by paying the owner to do nothing. That is not exactly acceptable. The same usually goes for making producers independent contractors because your buddy advised it was a good way to save money.

Examples from the E&O world include:

1. • "If I license everyone, it will cost me more, and my staff will migrate to bigger agencies paying more." That does not go well in a deposition.
   • "If I do not have procedures, then the plaintiff cannot accuse me of not following procedures! I win." The agency does not really win because the result is the agency is painted as incompetent.
   • "We do not input data because it takes too much time." Really?
   • "We do not check policies because it takes too much time." Seriously?
   • Etc.

The Accounting Solution The solution is to do the work. The reality is that doing the accounting and operating procedures correctly actually saves time in the long run. My estimate, based on the improvements I've seen with my clients, is that approximately a 20% time savings is achieved. Hire an accountant who knows insurance agency accounting or hire someone to educate your accountant on insurance agency accounting. I have done this successfully many times, and, for constructive people, it is a blessing. Everyone sleeps better knowing they are doing the job right. Do not dig your grave deeper. When you learn that you or your accountant has been doing the agency's accounting ineptly or fraudulently and someone points this out, do not try to explain the problem away. Absolutely do not attack the messenger. Be constructive. Spend the time and money to purchase a better agency management system and then learn to use it. Some system’s trainers are not worth $2, and you may have to find third-party trainers. My most successful agencies, in this aspect, almost always use third-party trainers. The E&O Solution

1. Develop real procedures. The ROI using good procedures is awesome: 1) Productivity increases capacity with fewer people; 2) Sales increase
2. Complete a real audit. Fear seems epidemic with small agencies that an audit will put them out of business, not because of the cost but because of what the audit will discover. Personally, I think it makes for more sense for the auditor to discover the issues than for a plaintiff attorney to do so.

The Contract Solution Small agencies usually work with small attorneys, and many small attorneys are jacks of all trades and masters of none. They generally are not masters of insurance agency contract law. Agencies of all sizes need legal advice specific to them. If you cannot find a true specialist, let me know because here are some options:

1. I have trained many attorneys on insurance agency legal needs.
2. I can refer you to attorneys who specialize in agencies, but they likely will be in a different state, and you do have to pay.

It is so important to use true legal experts. I have seen generalist attorneys write contracts so the agency did not own its own book of business, the buy/sell agreement valued the agency about 2,000% higher than it should have, the agency violated its own by-laws, the owners had to sell their shares for half of their worth, obvious IRS compliance problems were created and this is the first paragraph in a 100-page book specific to attorney incompetence. Overall Solution Go to conferences with more sophisticated agencies. When you go to conventions, hang out with more sophisticated (not just larger, because larger does not always mean sophisticated) agencies rather than commiserating with other small agencies. Don't believe everything you hear, but dig for details from the best. Make a mark with insurance companies. Be professional in your submissions. Tell a story. Do not just submit junk or a pile and cause the company to wade through a mess. Some companies open doors for small but professional agencies. See also: 3 Ways to Boost Agency Productivity   Conclusion At the time of writing this article, my confession is that small agencies have worn me out. I am tired of fighting with agencies regarding what needs to be done with their accounting, their E&O, their carrier relations and so forth. Almost always, they do not know what they are doing, and many refuse to understand they are in a corner and do not have a choice. This is not fun. What is fun is working with agencies of any size that are constructive and proactive. Most bigger and better agencies got bigger and better by being more constructive, listening better and not refusing to act just because the action was difficult emotionally. They surpassed the emotion and their emotional barriers. Doing so greatly advanced their fortunes, both their monetary fortunes and the quality of their lives. I know that, for small agencies, time and money are always short. I do not know how to fix that in the short run, but I know how to fix it for the long run, and that is take the time to do your accounting, your data and your procedures correctly now. Bite the bullet. The ROI is high and, like in the old FRAM oil filter commercial, you can pay now or pay later, but you will pay, and, if you wait, the cost is likely triple or more what you'll pay now. Is it time to change that filter? You can find the article originally published here.

P&C insurers started a new momentum in 2018. Net incomes more than doubled in the first half compared to 2017, and P&C net premiums written rose 12.7 percent. With continuing economic traction, rising interest rates and higher investment income promised for 2019, this year could follow a similar trend, according to Deloitte. To continue the momentum, however, the industry will need to attend to some distinct challenges. How well insurers fit into an environment where customers are demanding greater personalization and more dynamic engagement, will depend upon insurers’ collective ability to incorporate new technologies and provide more customized coverage to meet the evolving needs of their consumer populations. Taking a Look Back at 2018 An improving economy and a bit of good luck provided wind for the sails of P&C insurers in 2018. Insurers witnessed growth in their insurable exposure base thanks to a drop in the unemployment rate and overall positive GDP gains, combined with elevated consumer spending. As proof of rising consumer confidence, Adobe Analytics reported a 23.6 percent jump in online Black Friday sales over 2017, with total sales ringing in five to nine percent higher than the previous year. A lower number of natural disasters in the first half also provided breathing room, dropping by one-third globally over the same time period the previous year and helping insurers to prepare for the onslaught of the 2018 hurricane season. As of early December 2018, insurable losses from Hurricane Michael had reached $4 billion and Hurricane Florence had netted $10 billion, according to Munich Re. Additionally, AIR Worldwide estimates that wildfire payouts are expected to exceed $9 billion before the 2018 tallies come to a close. Despite the large-scale cost of second-half natural disasters, total cat losses from 2018 are anticipated to be in line with a $50 billion industry average. It’s a vast improvement over the $78 billion Munich Re estimates for 2017, and should set the industry up for a healthier new year. Looking Toward the Year Ahead While the short-term outlook remains positive for 2019, insurers won’t realize the benefits in equal measure. The industry still faces many challenges in meeting consumer expectations at a time when their habits and preferences are evolving rapidly. EY reports that 80 percent of consumers are willing to utilize digital channels of engagement, including web, chat, email, mobile apps, video and phone, to interact with their insurers. Preferences like these make digital transformation a top 2019 priority, but many insurers won’t make the grade. For example, while 7 out of 10 insurers are now embracing cloud technology, taking advantage of lower-cost transformations and faster speed to market than on-premise system overhauls, the numbers also serve to highlight that some insurers are still behind the technological trends, fighting ailing legacy systems to meet consumer expectations in a digital age. New product development is another area where all insurers don’t and won’t fare equally. Startups continue to enter the industry, often supported by insurer-led incubators, offering fresh products that meet the needs of consumers. To maintain positive momentum, insurers will need to bring new products to market faster and find ways to create customized insurance solutions. See also: De-Siloing Data for P&C Insurers   Breaking Down Technology Barriers Technology remains an area that separates topperforming insurers from those who face extinction. According to J.D. Power, 45 percent of consumers use multiple channels when purchasing coverage, with a growing preference for online engagements. The J.D. Power 2018 Insurance Digital Experience StudySM revealed that insurers are falling short of consumer expectations. Attractive user interfaces have proven a poor substitute for core functionality, leaving consumers unable to complete simple tasks, such as quoting and purchasing a policy, completely through online channels. Information from CB Insights further confirms the industry’s poor showing on the digital front. According to their research, insurance continues to trail other industries when it comes to creating satisfying online experiences. While many insurers have mastered the web-presence portion of the digital equation, allowing customers to research coverage and maybe even request a quote, this experience falls short of customer expectations driven by an Amazon-buying culture. If insurers are unable to provide web quoting, binding and issuance, they have failed to deliver the functionality consumers expect and risk losing future business. Half of insurers responding to a Willis Towers Watson survey agree that the industry has been too slow to respond to digital trends and must now play catch up to evolve their capabilities to consumer standards. Eighty-five percent of CEOs are worried about the speed of technological change and their organization’s ability to develop the capabilities they need to compete. According to a new study conducted by North Carolina State University’s Poole College of Management’s Enterprise Risk Management (ERM) Initiative and global consulting firm Protiviti, “C-suite leaders are most concerned about their company’s ability to transform its operations and infrastructure to successfully compete with organizations that are born digital”. Who will win on the digital front in the end: InsurTechs or incumbent players? It seems the industry is split when it comes to making a prediction, with 45 percent of insurers saying that incumbents will be the future digital disruptors. An equal number gives a nod to the startups. Willis Towers Watson predicts that the reality will be far different as insurers instead partner with startups on digital pathways. According to PwC, nearly half of insurance executives responding to the 21st CEO survey are planning to enter strategic alliances in 2019 as the partnership ecosystem continues to expand. “We just think it is cheaper to buy technologies and external teams to help us get access to new capabilities,” said a director of strategy at a U.S. insurer when responding to the Willis Towers Watson Survey. “Developing our own systems is expensive and difficult." Analytics Lead the Future In addition to digital distribution, a growing trend toward analytics investments will be another technology-related area of focus for future-conscious insurers. While carriers are recognized for the quality of their data, managing this information for use by analytics is a challenge given the disparity between policy administration systems. Before insurers can invest in the next stage of analytics discovery and the application of artificial intelligence, they need to have their policy silos not only in order but communicating with each other. Digital distribution platforms have proven beneficial at uniting backend systems and delivering the single view of the customer necessary for insightful analytics applications. By using a digital distribution platform, insurers gain a single view of the customer and all applicable data. Analytics can then be applied to provide insights that fuel more personal communication between insurer and insured or more applicable products. Insurers are also able to offer online quoting, binding and issuance, in the streamlined environment customers expect. The cost is minimal when compared to internal systems overhauls and allows insurers to meet consumers’ digital demands without the lengthy timeframes associated with core systems upgrades. Reinventing the Insurance Product Line While insurers are partnering with InsurTech innovators to gain critical technological capabilities, particularly in the area of digital distribution, InsurTech innovation will provide a challenge to incumbents on the new product front. While much of early InsurTech funding focused on the healthcare space, CB Insights has witnessed the infusion of InsurTech dollars across the P&C sector, rising rapidly from 2015 and peaking in 2017. They estimate a $210 billion opportunity awaits across personal auto. The homeowners market represents an additional $74 billion for tech savvy startups bent on disruption. Currently, customer recognition of new entrants is low, but many are gaining ground. Bain’s 2018 Customer Behavior and Loyalty in Insurance Study reports that Lemonade is outperforming incumbents on the aspects of the buying experience that matter most to consumers. The study also revealed that 60 percent of the 174,000 respondents said they were open to purchasing insurance through new entrants. In 2019 and beyond, insurers will need to innovate and bring new products to market faster to keep pace with InsurTech innovation. The trend is driven by a number of consumer demands, including those for coverage that includes expanded risks as well as innovative ways of insuring assets. The sharing economy is one example where societal and technological changes are driving the need for insurance product innovation. One quarter of those participating in the sharing economy who believe they are at risk for doing so, want coverage they can turn on and off as needed. Deloitte predicts that insurers will need to increasingly “blur the lines” between personal and commercial coverage to meet these needs, providing hybrid policies that encompass malpractice, product, auto and cyber liability in one policy InsurTech Innovation Marches On

• Root, a usage-based auto insurance carrier raises $51 million in Series C funding. Root “insures only safe drivers” by using data acquired through Smartphone apps to determine consumer driving behavior. Premiums are priced accordingly.
• At-Bay, a “proactive cyber security monitoring service” offering related insurance coverage, raises $13 million in Series A funding, adding up to $19 million in total funds.
• Buddy offers on-demand, supplemental accident coverage for people who participate in active, higherrisk activities, such as skiing, hunting or hiking. Coverage is turned on and off via a smartphone app. The company was selected as one of only 10 companies admitted into the inaugural class of the MetLife Digital Accelerator.

While competition is entering the industry, CB Insights reveals that most insurers have focused on forming InsurTech partnerships with companies that complement their existing business over developing new products. Providing ancillary services, such as roadside assistance or organizational tools that help consumers compare the cost of car repairs, for example, has proven advantageous for insurers. According to Bain, 80 percent of consumers are interested in ecosystem services and willing to pay a higher premium to get them. While many insurers shy away from product innovation in favor of ancillary services, others are beginning to invest in InsurTech incubators or accelerator programs. In December of last year, The Hartford announced ten new startups that would participate in its second program launching in 2019. Accepted entrants are offering a wide range of products, including item insurance purchased through a mobile snapshot (Pineapple) and on-demand coverage for drones (Skywatch). See also: Keys to Loyalty for P&C Customers   See Your Box, specializes in collecting and analyzing data from IoT devices. According to Deloitte, sensor-based telematics policies are poised to become “a major force in product development” in 2019 despite emerging carrier disillusionment. Nearly one-third of insurance CIOs surveyed by Ovum stated that the cost and complexity of implementing IoT-based products was a deterrent to implementation. Nearly 25 percent find low appetite from customers for the coverage. Consumers and businesses are looking for customerfriendly products designed to protect them and their assets without breaking the bank. For instance, a recent survey conducted by Ovum revealed that 50 percent of U.S. firms have not purchased cyber security coverage despite the fact that 61 percent expect a breach in the next 12 months. Lack of value is considered to be one of the biggest deterrents. Only a quarter of firms feel that premiums are accurately aligned to their risk profiles, and 23 percent believe the industry is unclear about their approaches to policy pricing. Sixteen percent of respondents who have purchased policies say they aren’t covered for all risks. To consistently maintain and gain market share, insurers need to deliver on customer needs. That means protecting them against liability and their assets against loss, but in ways that deliver value and meet cost expectations. According to Bain’s analysis of their recent study, consumers “want to be able to choose from a good selection of policies at reasonable prices”. While some insurers will initiate incubators or accelerators to win InsurTech partnerships that enhance product lineups, others will go it alone, using vast stores of data to develop products that more closely fit the needs of customers today. Of course, not all insurers will have an appetite for expanded risks or the need to develop new product types when their primary customer base is covered by more traditional policies. All insurers, whether developing new products in house, supporting an incubator, or relying on their current product stack can benefit from a market network. Market networks will grow in 2019 as a way to enhance product selection and meet the need for more customized coverage. As insurers offer their products through the network, they are also able to utilize policies offered by other carriers to meet the needs of their customers when they don’t have an appetite for the risk or don’t have a product in house. Customizing coverage in this way allows insurers to meet the customers’ needs and price points while maintaining the renewal and the customer relationship. A market network operates as part of a distribution platform, providing insurers with digital distribution capabilities that unite product silos and enhance analytics applications. Insurers can provide a digital environment that allows consumers to select from a broad range of coverage to more accurately meet their insurance needs. You can download the report here.

“There is hardly anything in the world that some man cannot make a little worse and sell a little cheaper, and the people who consider price only are this man’s lawful prey.”  ― John Ruskin

Recently, I read a blurb that featured an “experiment” by SafeButler, an online premium comparison web site. The purpose of the experiment was to see how fast someone could get a renter’s insurance policy. They tested 10 online sources for coverage on a “luxury apartment.” We might recall that Dr. Frankenstein did an experiment once. It was ill-advised and didn’t turn out well. In this case, we have an experiment that, if relied on by consumers, might not turn out well, though the results of this experiment were presented as if they were a good thing. According to the report: “Assurant, Jetty and Lemonade have done a fantastic job of condensing the number of questions. With Jetty and Lemonade, we can almost finish the entire flow in about one minute.” Keep in mind that they were quoting a “luxury apartment.” That would imply to me that the renters are fairly affluent. As such, should they be asked a “condensed” number of questions in order to identify their insurable exposures? Do they have an umbrella policy? Do they need an umbrella policy? Would each of these sources provide them with the basic coverages they need, especially any underlying coverages required by an umbrella policy? Do these “luxury apartment” dwellers have significant amounts of jewelry or other property that has limited coverage in these policies? Do they perhaps belong to a private club or participate in volunteer activities with liability exposures? Do they have a need for personal injury coverage? Do they do any work from home? Do they own a watercraft housed at a local marina? Do they own any other properties? See also: 4 Hot Spots for Innovation in Insurance   What are the odds that these and possibly other relevant questions were asked at these web sites in “about one minute”? According to a chart they provide, the top two fastest quoters, Jetty and Lemonade, asked two and five questions, respectively. What’s more important, fast and convenient, or having a six-figure uninsured loss? And exactly what coverages are provided by the fastest/cheapest quoters? The report says they compared coverages “at the same level.” If they didn’t compare coverages at the policy language level, they didn’t compare coverages at the same level.

“There is more to life than increasing its speed.”  ― Mahatma Gandhi

I wrote an article last year about my son’s experience in renting his first apartment. The property management company required renters insurance and they had a relationship with a vendor that could provide it. You could read the policy online. No endorsements. Limited named perils. Minimal additional coverages. $50,000 liability limit. Overpriced junk. For an extra $80, I could get him a good HO-4 from a decent company. For an extra $120, I could get him a premium policy. He went with that AND a personal umbrella policy. I told him if he was ever short in paying for this superior coverage, I’d pay it, but he was going to protect his assets and income stream AND, even more important, he was going to protect innocent members of the public from his possible negligence. The report’s conclusion was: “People on a tight schedule want to feel safe and get covered fast. While all companies we tested provided great coverage, some were faster than others.” “Feeling” safe and actually being safe are two different things. How does the experiment warrant that ALL of these companies provided great coverage without examining their products and options in detail? And how do we know if each of these quoted policies properly and adequately cover the unique exposures of the applicants who reside in a “luxury apartment”? Do they cover all of these real-life exposures? See also: Insurance Coverage Porn   Does anyone really care as long as they can complete the unpleasant insurance purchasing task in one minute? Probably not…until they have a serious uncovered claim. Then fast, easy and cheap doesn’t seem that important. As my mentor, the late John Eubank, CPCU, ARM, would always say:

“The bitterness of no coverage is remembered long after the sweetness of low price has been forgotten.”

What if you ask someone if they are thinking about suicide, and they say, “yes”? What do you say? Here are four responses that can make a difference.

• Express gratitude

The first words out of your mouth: “Thank you.” “Thank you for trusting me.” “Thank you for your courage to be vulnerable with me.” “Thank you for valuing our relationship.” Often, when people express daunting thoughts about suicide, they expect to be judged. They anticipate that others will react in negative ways such as fear, anger, minimizing or shaming. When they hear a genuine expression of gratitude, often they are put at ease. This honoring response creates a safe space to move into next steps. Starting here is starting from a place of dignity and respect.

• Reassure with partnership

Second words to share: “I am here for you.” “I will stay with you as we figure this out together.” “I am on your team. You are not alone.” “I will persist with you until we have a viable plan to get you the support you deserve.” “I’ve got your back.” “It’s my honor to be here for you. I know you’d do the same for me.” “I don’t know exactly what you are going through, but maybe I have had some similar experiences. My heart is with you. Let’s figure this out together.” Because rejection and discrimination are real outcomes for people living with mental health conditions and suicidal thoughts, reassurance can be very grounding. Too often after disclosure, people who are suicidal experience the “hot potato effect.” Well-meaning people (and this includes many therapists) get scared, so they bounce people to someone else, who then does the same. Each time the person in despair is passed along to someone new to “help,” they must start over, telling their painful story, recounting symptoms and so on. All the time, no one is actually helping them solve problems and recover. The hot potato effect is demoralizing and often feeds into a narrative of “I am worthless and unlovable” or “no one can help me.” Bouncing people around worsens the suicidal crisis rather than helps resolve it. Working in partnership lets people know they have an advocate, someone who is in their corner. Another way to express this part is the idea of reciprocity. “I am helping you just as you would help me.” This statement lets the person know he or she is not a burden, but that this is just what friends and family do for one another out of love. Finally, this step emphasizes the importance of an empathic connection. You must reach inside your own memories of experiences and tap into something you have gone through that may give you insight into the other person's current emotional state. By doing this, you will be more likely to respond as you would want to be treated. See also: Suicide and the Perspective of Truth  

• Offer hope

Hope is the antidote to suicide. The most effective way to offer hope is through action. “If you were less miserable, you would probably be less suicidal, yes? I have some ideas to help you alleviate your suffering.” “I know some resources that might help.” “Let’s call the National Suicide Prevention Lifeline (or let’s text the Crisis Textline) together, so they can help us make a plan to keep you safe for now.” “This is important. Let’s talk through some ways to help you cope. I know of an app (My3App.org) that can guide us.” With compassion and collaboration, you can help the person consider options for developing a personal plan for healing. Offering hope is NOT about championing change (e.g., “You better see a doctor!”) or proposing reasons for living (e.g., “But you have so much to live for!”). Offering hope is about helping a person craft his or her own plan for safety and wellness by providing possibilities to help the person figure out what is best for him or her. Building in choice and empowerment is key in this step. Offer options at every turn (e.g., “We can take a walk and talk about this or go to the coffee shop.”). Have the person identify coping strategies and wellness tactics and write them out in his or her own handwriting. Say, “You are the expert in your own resilience. Let’s write down what has worked for you in the past.” Let the person know that you would like to be considered part of the safety net, and for you to be effective in that role, you would like help, too. Say, “If it’s okay with you, I’d like to go with you to your first appointment, so I can also get coaching on how best to support you.” Other resources to engage in this step might include your local mental health center, employee assistance programs or HelpPro.com’s suicide prevention therapist finder resource. Suggest that you call or meet with these resources together, at least as a first step. While you don’t want to inject your own ideas for the person's reasons for living, you may listen to and reflect back the reasons for living you hear the person say. For example, you can say something like, “On one hand, I hear you say you feel so overwhelmed, you don’t know if you can go on. On the other hand, I am hopeful when I hear you say things like you want to be a good role model for your kids. The way you say that it sounds like a part of you is fighting against this despair.” Another way to offer hope is to hold it for them. You can say something like, “What you are telling me is that you feel hopeless. I, however, see positive things in you and your future. I know you can’t feel this, but I can. I will hold on to your hope until you can feel it again.” See also: New Approach to Mental Health  

• Follow up

Before ending the conversation, make a plan to reconnect. “I will send you a note tomorrow to see if things are moving along.” “Let’s schedule a coffee for next week, so you can update me on whether or not the plan is working for you.” “I will call you by Friday to see how that therapy appointment worked out. Sometimes, things don’t seem like the best fit on the first pass, so, if that is the case, we can try again.” “You matter to me, so I’m going to let you know when I am thinking of you.” “I am feeling good about the steps you are taking to get back on track. I will reach out from time to time, and I’d love to hear about your success and any challenges you are experiencing.” It turns out following up is one of the most effective ways to prevent suicide. Sometimes these communications can be “checking in” to see if the person has hit a roadblock. Other times “non-demand caring contacts” are all that is needed. What are non-demand caring contacts? Just what they sound like. No asks. No telling what to do. Just “I’m thinking of you” messages. They could come in the form of pictures, “what I appreciate about you” thoughts or even funny cat videos. By following up, you are letting the person know he or she is not a hot potato, but that you are there standing shoulder to shoulder, walking with the person out of the darkness together. When someone discloses thoughts of suicide, treat it as a gift. The person has invited you in to a vulnerable part of their world, and you are a guest in this space. While it can be very scary to hear that your loved one is in such a desperately painful situation, your presence can make a huge difference in their recovery. So, when the person says “yes” to the suicide question, take a deep breath and follow these steps. You might just be the one to help the person save his or her life.

Ecosystems will play an important role in the future of insurance. But what factors will determine success? Tom van den Brulle, global head of innovation at Munich Re, says that at the end of the day insurance carriers need to be more courageous. Tom, what does your role at Munich Re involve, in particular with regard to ecosystems? Tom: “I am looking after the innovation portfolio of Munich Re. My role involves the development of our own platforms, such as Parachute and Realytix. But Munich Re is also investing and developing in long-term partnerships with key partners through our unit Digital Partners, for example. We’re a so-called cooperation partner on other platforms; think of Slice, which offers home-share insurance cover to Airbnb and other home rental platforms. We’re a member of various ecosystems; for instance B3i, Plug and Play and the Barclays Rise Program. And I also have the privilege to chair the Insurtech Hub Munich.” What are Parachute and Realytix about? Tom: “Parachute encompasses the complete value chain of insurance. Digital Porte is their new digital insurance agency, fully licensed to sell life and health insurance in Canada. Their business model allows both licensed and non-licensed partners the ability to sell eligible insurance products using DPI’s digital platform, Parachute. With Realytix, we are opening up opportunities in the development of non-life-commodity products. Time-to-market is the key term: In order to carry out back-end integration of a new product and bring it onto the market, primary insurers generally require up to two years. Realytix reduces this timeframe to just a few weeks.” Asian players such as Rakuten and Ping An seize all sorts of new business opportunities because they think beyond the boundaries of their original industry. Thinking ecosystems is at the core of their strategy. Tom: “In the last five to 10 years, with digitalization, we have learned that we can’t do all things on our own anymore. An ecosystem is bringing together all the players that can contribute to discussing and solving a particular issue. We need to organize ourselves differently, in order to learn from others and integrate processes. These can be corporates, but also governmental, academic institutions and others. The essence is that we need to find organizational solutions to bring all of them together. That’s the ecosystem.” See also: How to Build an Innovation Ecosystem   So it is critical to look beyond industry boundaries to solve the real issues that customers are facing; the problem that precedes the need for insurance. Tom: “I think customers are looking for value, for trust and for choice. Customers are looking for more and more aggregated offerings of services. So that’s what you need to put together. You can look at this challenge from different angles. The question is whether the insurance angle is the most relevant one. In some cases, it can be. But in other cases, a different angle may be more relevant. For instance, when a customer books a flight, he or she may want to purchase travel insurance on top, book hotel accommodation and rent a car. The challenge is to integrate insurance in this journey using technology but also through partnering with the right institutions, institutions that have access to customers and that also have their trust. I think that is key.” These trustworthy institutions being key, what kind of ecosystems do you envision in the future of insurance? Tom: “There are different ways to look at this. The insurance value chain seems to become increasingly fragmented. We don’t have one insurer that covers the entire value chain from the capital market to the customer front end. It’s rather, and this is also what we see in the insurtech space, a range of very different players that are contributing different concepts and processes of value to serve the customer. It would be exciting if a platform existed that brings all these different experts and excellence together. However, the most recent DIA line-up also included some interesting blockchain use cases that showed us that probably in a couple of years, if the technology works, insurers will play a totally different role and maybe have a modified business model. If you bring investors together with risk owners, you don’t necessarily need anyone in between, including solving the problem of discretionary legal terms. The second angle obviously begins with the question, 'Who has access to clients?' Who really has a direct interaction with clients? Who can build trust that gives clients such a good feeling that they will come back and ask for more of these services? Even if they’re probably slightly less competitive. So, one perspective is the fragmentation of the value chain and the other is the value of client interaction.” This obviously has an impact on the role insurance carriers should play in an ecosystem, in particular with regard to the inherent desire to be in control, to take the orchestration role. Tom: “Yes, the role may vary between being in control and just being one of the nodes. Many new products and services will be aligned with life events, such as getting married, buying a house, having a child. Consequently, the role of insurers could expand beyond traditional risk management and insurance coverage. Of course, insurers should determine what their distinctive added value is in an ecosystem. A mixed approach is the most suitable: centering on joint value creation for customers, providing risk-mitigation services to start with. Take Drover, one of the platforms Munich Re is involved with. It’s a marketplace that offers car leasing and leasing services to retail customers and rideshare drivers in the U.K. The insurance is bundled with the car lease offering. Saveup is a digital savings platform for end-customers that has been developed by Munich Re and is available as a white label solution for primary insurers.“ How important are insurtechs in developing platforms and ecosystems? Tom: “We believe insurtechs are inevitable partners to work with. They are doing many things better, with more depth and with more focus. A couple of years ago, we looked at insurtechs as digital front-ends for insurance. But, coming back to the concept of fragmentation of the value chain, there are now so many different technology partners available that are able to contribute to the solution to the customer. We’re acquiring some of them, we’re partnering with some of them, we’re looking at them via venture capital funds. We’re trying to do this in a fairly intelligent way, in order to understand how we can really enhance the service that we’re giving to clients. This has become amazingly more complex than it was a couple of years ago.” Why is that? Tom: “Because technology has been accelerating so much. And because we are now digitizing entire value chains, rather than just the piece that interacts with the customer. But it has also become amazingly more fun actually to look at this and to bring it together. We see it positively, but it is a challenge for us to stay on top of the discussion. You need to do much more and you need different people for that. We are now really in a war of talent, probably something that we didn’t perceive to be a couple of years ago.” Is that also one of the reasons why you are chairing the Insurtech Hub Munich? Tom: “The Insurtech Hub Munich is an initiative of the German government in order to make sure that digital topics are being advanced and taken ahead. Munich is an important insurance capital, and we are bringing together all these different contributors, academic institutions, corporate technology firms, startups in Munich, trying to make it easier for the industry to interact and to use these different technologies.” One of the elements that we like about Insurtech Hub Munich is that its active members include leading universities and business schools. This may also help to attract talent, entrepreneurial talent as well as insurance talent to come to the industry with a more open view than they do today. Many mention the war for talent being on top of the agenda when it comes to building those ecosystems. Tom: “I think a couple of years ago, we all started working with insurtechs for cultural reasons. Because it was cool, and because we didn’t understand all the startups and why they were wearing hoodies. But at some point it was also cumbersome - and we wanted our ties back. Today, it is really much more about how to get access to coders, how to get access to AI specialists, to the real people that are creating value there. Also this has become increasingly complex. That’s why we, the Insurtech Hub Munich, are partnering with Plug and Play, for example. Plug and Play is doing an accelerator program. And we are partnering with DIA to bring people together and make sure that we have access to them. It is less for the culture, and, although it’s all really cool, it is now very much business driven.” See also: How to Get Fit for Innovation   Ecosystems are not only about complementary capabilities to offer customers a more comprehensive solution. They are also about learning from each other in an open atmosphere. Tom: “Absolutely. At Munich Re Digital Partners, for instance, we are looking to create an insurtech ecosystem where our partners can learn from each other, where they can leverage from each other’s learning as well as the wider network that we are building. Think of subject matter meetings where insurtech CTOs, CEOs and others exchange their experience and learnings on specific key topics of interest. Think of Munich Re clients who, for instance, advise our partners on regulation and market entry; selected vendors that offer our partners all sorts of services, such as legal, consulting and HR; and tech providers that are able to build back-end systems, payments and other necessary integrations.” Being active in so many ecosystems, of so different nature, what would be the single most important learning from your vast experience that you would like to share when it comes to building and nurturing ecosystems? Tom: “Well, my learning would be that we need to be courageous enough to build up new business models. When we’re looking at IoT, for example, and what impact it’s going to have on claims frequency, risk prevention is where we can expand our role. We know what it’s about. We know about risks. We know where they come from, how they evolve and what to do about it. The cooperation with Bosch that we announced just recently is one step in this direction. Another example to illustrate what I mean by ‘being courageous enough’: Imagine sitting in front of a risk manager of an industrial company. They will probably burst in laughter when you tell them how few risks we are willing to take. With all the data that we are collecting, we need to be brave enough and really move into the field of risk prevention services and suggest to these companies solutions with a higher relevance for them and their industry reality.”

“Our agency is a relationship-based agency. We have the best interests of our clients at heart and offer the best advice and coverage in the most cost-effective manner,” a Dallas-based, independent P&C agent says, and I'm sure most independent agents say something similar. But agents have hundreds or thousands of customers and tons of data to recall for each client, and our memories can hold only so much at a time. The good news is that a lot of data gets captured by agencies that can be consolidated with several other data sources to paint a better picture about the clients, allowing for a more thorough profile and better risk analysis. The core question an agent needs to ask is, “Do I have all the information I need about my clients and can I locate it quickly?” Data is like Lego bricks, just waiting to be used to create valuable insights. Once you start putting them together into unique combinations of datasets, you can create real value and a competitive advantage. Let’s take a peek into a client’s journey through the eyes of an agency and try to identify data needs. We will also look at how data management and data assets will provide a deeper understanding and better client management, with a 360-degree view of an insurance customer. Such a view not only focuses on clients but creates an ecosystem that allows agents to gather, nurture, curate and enhance data about their clients. Agents understand that if a relationship is a life, then data is oxygen. There must be continuous feedback to systems using analytics to understand clients better. See also: Using Technology to Enhance Your Agency   Shown below is a high-level flow of the client journey from a prospect to being a loyal customer, and all elements of communication and data points that can be used better. 1. Closing a prospect — Be the insurance commercial or personal, there is always an individual who will be involved/engaged for policy discussion. It is important to understand the primary contact, any affiliation to a business and the need for coverage. For instance, you may consider calling the contact who is operating a gas station or a convenience store but text or email someone who is looking for a cybersecurity policy. The approach should be tailored based on contact and business profile. By segmenting clients based on attributes, agencies can profile them accurately and develop customized communication approaches. These contacts can be ranked based on their coverage needs and likelihood to purchase a policy. Then, drip communication can be designed to increase positive outcomes, focusing on higher-rank leads and converting those prospect who are ready. You can use the deal board feature of InsuredMine to achieve these results. In this case, initial client data, his communication response data, lifestyle and life stage data from social media can also play an important role. 2. Welcoming new clients: Successful agents pay special attention to a client’s onboarding to make sure there is proper communication at all times. They provide clients with all the information and channels (phone, text, email, chat, etc.) needed to contact them. This "availability on demand" leaves a good impression and reduces challenges when it comes to renewals. So, the question is what data do we have and how do we make the most of it in welcoming our clients? First thing would be to set them up on a welcome drip campaign, which will include sharing agency information, ways to connect and social media connections for updates and engagement. Follow-up communication may also include other cross sales and up-sales requests. (This becomes more effective when we capture more information about clients, including demographics and financial, family, lifestyle and life stages details). It is important to have a system that can help you capture all this data so it can be analyzed for better recommendations. Onboarding data can be as simple as knowing what is the best way to communicate -- email, text, phone or in-person. These are great pointers and need to be reflected in an agent’s communication at the right time with the help of the right tools. 3. Renewals: Come judgment day, and now agents need to go through the trial and prove their worth again, fighting against all odds like an increased carrier premium, other easier and cheaper options, more convenient methods of acquiring a policy through an app or online and many others. Agents need to start engaging clients about 90 days before the expiration of the policy. Agents can start with a drip campaign with a combination of email and text-based communication based on the client’s preferences. Knowledge of new or additional assets of the client will also help the agent provide bundling. Information about the client’s change in lifestyle and life stage data can also provide cover fire. 4. Claims management: This is a tricky one, as agencies may not have all the information to start with. Receiving an initial notification from the client about a claim situation should trigger communication, including carrier contact, claim filing options and customer service. Offering digital tools to help clients facilitate claims filing will provide information about the claim, and that information can be leveraged to better manage the claim and update the client’s risk profile for future needs. 5. General client management and annual updates: There are several clients who are on autopilot with very little overhead, but even those clients would appreciate periodic engagement for an opportunity to update their profile or share feedback. Other opportunities with this type of engagement can create cross sales and policy consolidation options, as well as suggestions for increased or improved coverage in line with changes in clients' financial situations. Connecting with customers at the right time for the right policy using available data and presenting special offers or promotions when they become a flight risk are other ways to engage. It all boils down to the right engagement with the right context, using the right medium, which will start to show results for any agency in a short time. For all the stages above, pulling data from Linkedin, Zillow, DMV, KBB, HazardHub, meteorological department, social media, and census data adds additional context and will help the agent communicate both effectively and efficiently. Other data sources that are equally valuable, but beyond the scope of this discussion, include telematics, sensors (IoT), wearables and GIS data. Understanding business from a client’s perspective and all data elements required at each stage and their respective data sources will do a tremendous favor to your organization:

• Helps create a 360-degree view of your clients
• Provides actionable intelligence to act at each stage
• Improves profitability and retention
• Creates a competitive advantage of data assets

Once you are able to bring in all the available structured and unstructured data, you are ready to tell your data story. We believe every agency has a data story that needs to be analyzed and narrated to operate effectively, showing a deeper understanding of clients. You may use the following four components to discover how to use your data story.

• Understand your business DNA with data segmentation
• Design simple and memorable graphics with data visualization
• Develop intelligent processes with data automation
• Humanize engagement with data experience

Understand your business DNA with data segmentation According to market analysis, customer (data) segmentation generates increased revenue for businesses. Customer segmentation tools help identify areas of improvement in business marketing strategies and inform you what strategies are working and what aren’t. Segmentation can also help increase conversion rates along every step. You can segment your customers based on several attributes based on demographic, geographical, psychographic and behavioral data and tailor your services accordingly. Design simple and memorable graphics with data visualization Data Visualization involves presenting complex data in simple graphs and charts, making it easy to understand. Gone are the days of long spreadsheets or databases! Data visualization tools make data user-friendly and interactive with no need for formal training. InsuredMine has developed some of the best tools to help agents convert their precious reports into attractive and simple visuals to understand data better. See also: The Future of the Agency Channel   Develop intelligent processes with data automation Data automation is performing high frequency, low-value touches with real-time actionable data designed with a mix of business intelligence, micro-customization and user response to the communication. Intelligent processes also lead to improved decision-making and provide for easy governance of processes. Data automation reduces human errors in handling large amounts of data and frees up support time. Data automation provides faster results and insights into analytics. For starters, it can be as simple as automating birthday wishes or renewal reminders. For more sophisticated users, it can be sending out a prospect drip email or client welcome drip email, with continued fine-tuning and segmentation to hyper-target for best outcomes. Humanize engagement with data experience Making effective engagements with clients is valued in this era of automation and robotics. Yes, you can experience data! That can happen through AI-driven chatbots and analytics-powered mobile apps. Both approaches provide a highly contextualized, data-driven experience for clients and reduce the frustration that comes with arranging to meet an agent by resolving non-material issues at the convenience of the client. Data tools help businesses analyze and explore opportunities to provide improved services. When clients experience the difference, they are sure to come back for more. Conclusion: I believe this blog provides a perspective on how an independent insurance agent can leverage internal, external, structured, and unstructured data to augment their efforts at engaging clients and providing them an extraordinary experience. Having a 360-degree understanding of clients will help the agent engage and segment clients at different stages of their insurance journey. These efforts show multiplied results through the use of data automation and data visualization and allow the customers to have the last say with their data experience. Adding in digital tools like a chatbot or a mobile app not only adds to it but will keep your clients coming back just for the experience. So what’s the delay? No matter how and where you start your story, we will help you end it with ‘happily ever after!’

What follows is disjointed and confusing. It is just like the marketplace is going to be in the future. Don’t dismiss this as “all wrong” until you at least consider the impact on you and your organization if any of this is right! Remember, the dinosaurs were “big and bad” until they weren’t! John is a good friend and a smart marketing professional. He is not full of himself. He is, in my opinion, authentic. He suggests the secret to success with his clients is delivery that is “fast, hot and cheap.” It doesn't matter whether you agree, and your clients may think differently – if you’re right, John will never be a threat to you. If you’re wrong, keep John away from your clients. The challenge in today's and tomorrow’s world is that the marketplace is no longer a monolith – a mass market on your “Main Street.” That Norman Rockwell portrait is now more of a mosaic where each tile is determined by the people in the niche targeted and served. They are defined by their age, race, ethnicity, culture, language, chosen style of engagement (verbal or non-verbal), economics, technosavvy, politics, etc. You must meet your clients who, what, how and where they are, not expect them to meet you where you are. IGNORE THIS COUNSEL AT YOUR PERIL! THE CUSTOMER REMAINS KING! Today, our business kingdoms can reach much more widely, but the threat also increases that barbarians can invade our comfort zones. See also: Bold Prediction on Customer Experience   As teenager, I delivered groceries in a truck to corner stores or rural country stores. I felt like a man because I had a commercial driver’s license, unlike most of my friends. That feeling would end when Mr. Courrege would tell me, “Boy, put dat stuff in the corner.” He ticked me off, but he didn't care how I felt, and neither did my uncle, whom I worked for. The customer was king. That was 60 years ago. Today, the market has changed and never have customers had more options. They can shop from this global economy 24 hours a day 365 days a year, in-person or online and with a drone doing the delivery. About a month ago, I ordered a breakfast at the McDonald’s drive-thru. When I opened the bag, I found a coupon with writing on both sides. One side said, “Desde el McMuffin hasta la Big Mac. Ahora te lo llevamos a la puerta de casa.” The other side had the English version: “McMuffin to Big Mac. Now delivered to your door.” Both sides said, McDeliver/Uber Eats. I laughed and thought how stupid can people be – to pay $10 or more to have a bag of burgers and fries delivered. Then I thought about WAITR, a meal-delivery service that originated less than 20 miles from me. It is not as restrictive in terms of options as are the McDonald’s delivery boys and girls. I’ve been told they’ll pick up and deliver your food for a $5 charge plus your tip. A week ago, I received an e-mail offering to sell my home for 2% commission. I don’t know where this realtor was, and I didn’t care. If he could back up his brag. I’d be interested. Fast forward to today. I was talking to a legend in our industry. He’s worked with agents throughout this county for more than 60 years. For his network of agencies, his newsletters and audio tapes were the internet before the internet was born. Today, he remains as positive about the possibilities in our industry as he did the first time we talked decades ago. The only change is that what, how and where he markets and serves is entirely different. He knows that profitable delivery is necessary. Now, remember David and Goliath. Goliath was the best until he wasn’t. David won because he had better technology and youthful confidence, and he was nimble. (Fast, hot, and cheap!). I’m first and foremost an LSU fan. I’m an Alabama fan when they aren’t playing LSU. I believe Alabama's Nick Saban is the best college football coach in the history of the game. He is legend. Unfortunately (at least one night this January), his team looked more like Goliath than David. Did Nick change – NO! Did college football change – NO! Did coaching change – NO! It’s just, I believe that one night, that we saw that the people playing the games are changing. Clemson was having fun. Their youthful enthusiasm was more effective than the discipline of Alabama, with their rigorous training regimen that got them to that night but didn’t carry them to tomorrow. See also: How to Use AI in Customer Service   I’d like to see Coach Saban win at least one more national championship. I pray he passes Bear Bryant. He knows football and how to coach – yesterday. Is he right for tomorrow? Now I ask you – can you and your agency compete in tomorrow’s world? Like McDonald’s and Uber, can you get your clients to pay more than you’re worth for your delivery, or will the marketplace provide full disclosure of commission (or quote net of commission), and your competitors will start competing on the high cost of your delivery? Confused? You should be! I am! CHANGE IS INEVITABLE. YOUR REACTION TO IT IS NOT! Geaux Tigers (LSU or Clemson)! The purpose of business is to make money (win) and have fun! Are you doing both? Clemson did!

To complement recent advice from our guest bloggers, let’s consider the political dimension of applying analytics in business. Annette and Peter have shared useful tips on applying analytics for both customer experience and marketing. However, unlike in the classroom, advancing such use of analytics in business always involves politics. Over the years, as well as protecting technical stars from performance management systems, I have often had to mentor them on politics. Analysts can be idealistic and naive when it comes to the political dimension of office life. So, in this post, I suggest a simple framework to bear in mind when interacting with your stakeholders. I hope it helps you navigate the political dimension, or to coach your team to do so. A framework for the political dimension of stakeholders I have shared before on the importance of mapping your stakeholders and segmenting them, so you can adjust your style to suit them. Beyond this, there is a need to be aware of the political dimension and to act accordingly. Now, the precise details of political implications and game playing in each organization will vary. You will know better than I do what are long-term versus short-term priorities and how different stakeholders might be affected. What I want to share is a framework for identifying where political considerations matter and for which stakeholders. The 2×2 grid was developed by Simon Baddeley (Birmingham University) and Kim Turnball James (now at Cranfield). It is based on their research within the domain of local government, but their findings accord with my experience of working in large corporations. Their analysis of research findings led them to segment people into one of the following four quadrants. These are defined by the twin dimensions of reading (political awareness – ability to read what is really going on) and carrying (political actions – for good or ill). Using those two axes, they identify four clear segments into which your stakeholders may fall:

1. Innocent stakeholders (like naive sheep)
2. Inept stakeholders (like inept asses)
3. Clever but untrustworthy stakeholders (like cunning foxes)
4. Wise stakeholders (like the proverbial owls)

Let’s consider each quadrant in turn and their implications for managing stakeholders when deploying analytics. Quadrant 1: Naive Sheep The first point to make using this framework is to avoid being a sheep. Like lambs led to the slaughter, people in this quadrant are politically unaware, but innocent of any ulterior motive in their work. While potentially trustworthy, they can also all too easily be manipulated by others or become cynical and resentful of the organization. Sadly, I all too often discover that this is the quadrant occupied by analysts or data scientists. One of the reasons for that is actually principled. I have lost count of the times I have heard analysts or even their leaders describe themselves as not doing politics or sick of politics. As with an idealistic government-in-waiting, this is not a viable strategy. See also: Sentiment Analytics Can Drive Growth   Avoiding politics is impossible in any walk of life, but especially large organizations. As Aristotle said “man is by nature a political animal.“ However, it is possible to be political without selling your soul (as this useful article from Harvard Business Review puts it). The challenge for those who identify themselves in this quadrant is to wake up and smell the coffee. Recognize all the evidence that decisions (even important ones) are made for irrational, emotional and social reasons. Listen and watch more. Become more astute at understanding others' goals, concerns and where they might feel threatened. Build trust and collaborate where there is mutual benefit. When working with stakeholders in this quadrant, it can be helpful to propose more collaboration or socializing of their ideas before acting alone. Reassure them by sharing their ideas, but also ensuring they get the credit, even when you have done the networking. You may well become a trusted adviser for getting things done. Quadrant 2: Inept Asses Please note I am speaking about donkeys, not derrieres! These are people who lack political awareness, every bit as much as sheep, but do not have benign motives. Instead, they seek to play political games or manipulate situations to their advantage, while being embarrassingly obvious. They are the David Brent of real world offices. Believing themselves to be players they just make fools of themselves and usually undermine the reputation of their teams. Now we can all make mistakes in life. Errors of judgment. But, if you honestly self-identify in this segment, then the good news is that you have woken up to it. Apologies may be in order, but the most important thing to change will be your options. Stop trying to get one over on people. Start keeping your word and sharing to help others. When working with stakeholders in this quadrant, two things are worth considering. First, for any recommendations, lead with what is in it for them. Emphasize how they could benefit or advance their careers if they get on board. At the same time, be careful. You need to ensure you do not tarnish your reputation by being too closely aligned with their manipulation. You should also ensure it is not easy for them to pass off your work as their own. Quadrant 3: Cunning Foxes Here we reach the true Machiavellian manipulators within your business. At the worst, this is where you will find sociopaths and the few who actually do come to work to hurt others. Less extreme versions include those who have risen to a level of power or control and enjoy playing the system. Although such operators can appear glamorized in TV dramas, they can also leave a trail of destruction in their wake. I have personally witnessed a CFO who clearly took pleasure in humiliating and thwarting the efforts of certain middle managers. In these days of greater awareness around mental health at work and the alarming level of suicide among men under 50, we should be very concerned with such behavior. I have painted a picture of the stereotypical macho boss. But such character traits can also be found in women leaders and in those who do not appear senior. Anyone who has worked in large businesses will know that individuals can also exert control from positions of expertise or influence that are not obvious from org charts. It would surprise me if many of the readers of this blog self-identified as being in this segment. However, I have seen embittered cynicism manifest in some of these tendencies. If you find yourself thinking how you can get your revenge on others at work through the skills you have or ability to sabotage their work – stop. Don’t just think about the consequences if they found out, take time to reflect on the kind of person you want to become. Unfortunately, it is not rare to discover some of these characters at senior levels in large corporations. Being effective political operators, they are also often ruthlessly ambitious. If you identify some of the stakeholders you need to work with as being in this quadrant, then proceed with caution. A few tips may help you. Where possible, brief them before public meetings so they are not caught unawares (you do not want to corner them). At times, it may also make more sense to approach them in a more public setting, after you have secured the support of others you can trust. You should also consider what benefits for them you can highlight and whether it would work best to share those directly or in public. A personal pitch that you know fits with their plans or creates an opportunity may help complement a more public recommendation "in the interest of customers." Quadrant 4: Wise Owls As with all effective 2×2 matrices, this top right corner is where you want to be, having developed the ability to see the different political agendas and plans at work in your business and still being in touch with your soul and secure enough to act in the best interests of others. Those characteristics often distinguish those who are thinking more long-term. Age does not necessarily make one wise, but it might be worth considering if some of those older leaders in your business have wisdom to share. You can spot an owl by reputation. These are the leaders who are known as those who get things done, and people really want to work with them. They may not appear to be shining brightly at present, but you will find their advice being sought by people at all levels. If you have managed to develop both a strong ability to read the office politics and flexible tactics to get the right things done – please consider developing your team. Too few of today’s technically expert managers (across data, analytics, data science and research) possess such skills. Effective transformation of businesses to be data-led and ethical may well rely on your mentoring a generation of leaders to develop such skills. See also: 3-Step Approach to Big Data Analytics   If you have the pleasure of working with leaders whom you identify as being in this quadrant, consider asking them to be your mentor. This may be even more valuable for you if they are in a completely different part of your business. One of the most effective ways to develop increased awareness of office politics and the good judgment of deciding when and how to act is with the help of a mentor. At the least, it would help to consult with such leaders before widely sharing potentially controversial analysis. They may well be able to advise how to influence others. Are you a Sheep, Ass, Fox or Owl? I hope you found those thoughts on the political dimension of office life useful. Which segment did you identify with? Has anything I’ve said changed your view of use of politics at work? Why not dig out your stakeholder map and seek to place each of your key players in one of the above quadrants? At the least, I hope this post has prompted you to think about your ability to read political behavior and your motivations in any covert tactics of your own. A greater ability to operate wisely and ethically within the reality of political workplaces could really advance the influence and benefits of much analytics or insight.

The workers’ compensation claims process tends to creep along, often inviting lawyers to the party and leaving both workers and companies frustrated. But this trend is reversing. Why? Technology has been developed that alleviates the stress points that threatened to eventually break the workers’ comp system. The same is true for other insurance segments, as well. The technologies sparking this massive transformation across the insurance industry are artificial intelligence (AI) and machine learning. AI and machine learning help resolve claims exponentially faster, empowering teams to intervene at the right times, as needed. McKinsey goes so far as to predict that, by 2030, “claims for personal lines and small-business insurance [will be] largely automated, enabling carriers to achieve straight-through-processing rates of more than 90% and dramatically reducing claims processing times from days to hours or minutes.” Teams will be able to personalize solutions based on real data accessed instantly instead of requiring weeks of human analysis that can’t possibly incorporate the millions of data points that machines can. Technologies help claims representatives do their jobs faster and smarter so that people receive better care and organizations enjoy significant improvements in their combined ratios. Insurtech Becomes a Thing While AI-based solutions are relatively new to the commercial insurance industry, they have already given rise to a whole new market segment — insurtech. More and more companies are implementing AI into their offerings, and insurtech vendors are experiencing rapid growth of their customer bases as well as extending the contracts of existing customers based on the early benefits they’ve experienced. As the industry enters its biggest period of innovation in a century, driven by insurtech startups, and as organizations begin to track the magnitude of cost savings and other benefits, several important lessons have emerged. Below are my takeaways thus far from what’s becoming an AI revolution: See also: How Claims Process Must Drive Change   Don’t Do AI Just to Do AI There are cool applications for AI hitting the market all the time. Some sales guy is going to come in and show you something that will make your eyes light up. Don’t give in to temptation and sign on to do something just because it is an AI-based solution. Instead, think about your organization’s most pressing needs. What are your pain points? Where are your hold ups? What are employees frustrated with? If a solution fails to address these needs, it’s just another shiny tool that will never be used to its full potential. Practicality and usefulness are essential. Ease of Use Matters You could find the best solution in the world. It could be designed perfectly to take care of your problem, but, if it’s hard to use, it’s virtually worthless. Employees must want to use a new solution; they need to see how it streamlines their daily tasks and makes their jobs easier. This is essential for adoption. Adoption of AI-based tools can often face generational hurdles. There has been some resistance to AI out of fear that it will take over an employee’s job or simply from the desire to maintain the status quo due to personal comfort and familiarity. These are very real fears, and you would be wise not to discount them. The best way to prevail with a new solution is to show clear benefits to employees and make tools and software as easy to use as possible. Make a Plan AI requires forethought — not just in terms of what an organization needs or how employees might use it but also in terms of how it will be rolled out. There has to be a plan for implementation. Who is going to lead the project? How will employees be trained? What will happen with the data once it is generated? Even the best AI-based tools require management. Decisions need to be made in advance to get the most from any solution. Otherwise, implementation can lead to chaos and frustration, and the luster of a powerful new tool will wear off before it’s ever really put to use. Don’t Try to Do Too Much One of the biggest mistakes companies make once they understand what AI and machine learning are capable of is to take on too much. I would strongly encourage organizations to define and maintain a singular focus in applying the technology. When a company’s primary goal is to generate cost savings, for example, everything it does should turn in that direction. After all, the biggest advances come not when one goes broad but when one dives deep. AI applications are no exception. When organizations maintain a singular focus, they can devise the most consistently innovative and necessary solutions for their teams and customers. Real Personalization Is Possible Personalization has long seemed like a myth in the commercial insurance industry, something elusive that every company chases. With AI and machine learning, personalization will soon become a reality. See also: Why AI Will Transform Insurance   Because AI-based solutions can handle absolutely massive amounts of structured and unstructured data — and because they can learn on their own — users gain highly nuanced levels of information, which they can then apply to customize offerings. This opens the door for all kinds of opportunities to develop custom policies or benefits based on relevant data points. When personalization comes into play, everyone wins because costs, care and objectives are all aligned. Next Generations of Claims Operations On top of cost and efficiency benefits that AI is already demonstrating, the solutions of the future will improve the claims process across the board. For example, the need for litigation is reduced when claims are addressed in a timely manner or when injured workers get in to see the best doctor right from the start. Medicare Set-Asides (MSAs) can be processed in a fraction of the time based on better data. The possibilities are virtually endless when it comes to processes that can be improved. What we can see, however, even from these early days of insurtech, is that AI and machine learning will fundamentally improve how care is distributed and help the entire commercial insurance industry evolve. Looking forward to the years ahead. As first published in Claims Journal.