Michael Hinton. Head of Business Solutions. Business Insights for Dummies: aka Your Exec Team. Brought to you by:

Transcription

1 Michael Hinton Head of Business Solutions and Technology, QBE LMI Brought to you by: Business Insights for Dummies: aka Your Exec Team

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3 a little about QBE LMI PART OF THE QBE GROUP Top 25 company in the global insurance and reinsurance market. Listed on the ASX for over 30 years. Operates in all key insurance markets. Offices in 49 countries throughout Asia Pacific, the Americas and Europe. 13,500 staff worldwide. LMI PRODUCT Expands home loan market to >80% lending. Protects the lender in case of borrower default. Credit risk transfer and capital relief. B2B. QBE LMI Over 45 years experience in Australia. Supports the mortgage industry by reducing the inherent credit risk in mortgage lending. Offices in Australia, New Zealand and Hong Kong. OUR CUSTOMERS Major banks, ADIs, Credit Unions. Mortgage funders, broker groups. Residential mortgage backed security issuers. Industry wide view of high LVR lending. 60

4 BI as a competitive tool From business intelligence to business insights. Add Value! What do you know that they can t know? What do you know that is difficult for them to get? Example 1: COR Example 2: Arrears benchmarking, process, highest incident geographies Example 3: Fraud Example 4: Profitable growth Example 5: Geographies 61

5 62 it can be surprising what you might know

6 our updated approach to business intelligence OBJECTIVE: USE INFO FOR COMP ADV Better leverage the breadth and depth of existing information Increase the granularity of analysis Increase analytics capability of staff Make information more available internally Create business insights for ourselves and customers SOLUTIONS Creation of Business Insights team De-centralise & invest in analysis capabilities Find tools that are easy to use w/out training Find tools that require less expertise for development Invest in analysts in many areas ISSUES Analysis too centralised causing bottlenecks Analysis viewed as technical function Tools too complex to deliver and to use Development too expensive Narrow internal focus CHALLENGES Tried to do too much initially Development team perception Qualified resource pool Prioritisation old vs. new 63

7 64 organising ourselves

8 then vs. now Credit Uwriting Finance Credit Uwriting Insights BI Finance BI 65

9 66 so what does this actually look like? (demonstration)

10 feedback from Head of Product, Marketing, and Sales We have used lmiinsights recently to benchmark a mutual customer against their own customer segment and larger banks. The tools allows us to easily contrast and compare the customer across may metrics against how their competitors are performing. Customers are hungry for information that tells them where they may be missing out ( e.g first home buyer market) or where they are underperforming the market particularly with regards arrears at state and postcode level. The impact the tool has on customers is that it gives them a positive perception of our capabilities with reporting and data management. Because the tool is normally way beyond their own capabilities they see the opportunity to leverage our capability in their business which is essentially us providing Value Add. I recently used the output of lmiinsights ( arrears and TRS reporting ) when presenting to Abacus (the Mutuals representative body) to show them that their risk appetite and their arrears levels were far below the bigger ADI's and that there was a great opportunity to increase their market share by moving further up the risk curve with the assistance of a mortgage insurer. 67

11 feedback from Senior Sales staff The data can be diced & sliced heaps of ways. Lenders are so interested in if they are performing against our wider set of customers & lmiinsights tells them that in the higher LVR's. Snr Partnership Manager lmiinsights is a fantastic tool which not only demonstrates the breadth and depth of our reporting capabilities, but also allows me to respond quickly to the customer's needs when requiring information. It also enables me to give a very good view of their portfolio and risk profiles when we are asked to support them with data during marketing initiatives. My only downside is their lack of use. SPM 68

12 other feedback This is beyond my expectations, lots of flexibility, design is logical, great tool - Snr Mgr, Credit Risk Very powerful tool Head of Risk & Operations Good trade-off between flexibility and complexity - CFO Easy to navigate Snr Partnership Manager Can answer the majority of ad hoc queries that the Business Insights team receives and simplifies analysis Snr Manager Business Insights 69

13 the case for changing tools Used parallel estimation New tools took 1/3 rd of normal development effort 4 week proof of concept to get started with help from our business partner Inside Info Made possible by lack of need for large infrastructure Less technical complexity means apps can be maintained by business analysts instead of engineers 70