Areas of Focus 

 

 

Overview  — Data Services

The foundation of any actuarial analysis is your data. And often, the steps between start and finish can seem quite complex. We recognize this and provide the support, tools and expertise to make sure handling data is easy, secure and complete.

Pinnacle’s data services team provides a critical component to our expert actuarial service. By aligning and integrating our data services team into our core business and actuarial operations, we deliver results that fit your unique business needs. This advantage allows you to leverage both actuarial and information technology expertise without the all-too-familiar communication gap between these two critical areas.
We efficiently and effectively handle:
  • Input and output of non-traditional data formats
  • Conversion of hard-copy or report data into machine readable text (OCR)
  • Advanced conversions and summarization of data
  • Data cleansing, scrubbing and validation
  • Fast and secure electronic data transfers
Bottom line, our efficient solutions to the complex data tasks can result in real cost savings to you. We will also communicate what you need to know -- clearly and effectively. At the same time, we also strive to eliminate the headaches from data processing, security and transfer.
Experience the Pinnacle Difference: Timely, dependable and professional responses. Plain language that not only communicates our findings, but that adds value in the process. Understandable reports and presentations that help you navigate the jargon-filled process of the insurance business. And a team of experts who are focused on doing whatever it takes to exceed your expectations, time and time again. 

Services  — Data Services

Data Processing / Conversions

We see a lot of data in a lot of different formats. We recognize the format of required data is sometimes less-than-ideal for analysis – often in text-based reports (Adobe) or hard copy.

We efficiently and effectively handle:

  • Input and output of non-traditional data formats
  • Conversion of text-based reports (Word or PDF) into machine readable number formats (report mining)
  • Conversion of hardcopy report data (OCR – Optical Character Recognition)
  • Data cleansing, scrubbing and validation, and
  • Advanced conversions and summarization of data

Predictive Analytics Data Services

Before conducting an analysis of your data using predictive analytics techniques, the data itself must be prepared in a suitable format. We routinely combine and manipulate a wide variety of existing data storage structures into databases suitable for multivariate analyses and data mining activities. Our process involves examining the data in significant detail to identify duplicate or erroneous records and to validate the results in key fields. While the data scrubbing is an important value added service, that is just part of the value that we add.

We will work closely with the you to gather input on the data itself, because you know your data better than anyone outside of your company. We also provide insights comparing your data with that of other sectors of the industry.

Incorporating publicly available external data (e. g., credit scores, property characteristics and others) into the multivariate analysis can provide a tremendous boost to the descriptive value of your data.

The end results are predictive models which have been used to translate your insights and observations into meaningful, quantifiable measurements.

Providing suggestions regarding additional information or manipulations of policy detail that will be useful in future data analytics is a service that can provide significant long term benefits.

Technology Alignment / Integration

Across the profile of our customers and projects, we often see different technologies and platforms. We have the expertise and experience to efficiently align the necessary technologies and data platforms to allow our actuarial team to focus on modeling and results. We frequently transition between most major databases and platforms – SQL Server, SAS, mainframe, etc. and handle most legacy mainframe tape formats.

Training and Implementation Services

Many projects’ goals include knowledge transfer and technology transfer throughout the project.  For our clients, we establish a solid foundation within a certain service area, such as predictive analytics, to provide the training and technology implementation that allows your team to apply the same techniques for your organization.

Expertise  — Data Services

Pinnacle’s data services team provides a foundation and support that adds value to our actuarial services and client engagements. Some of the core components of this foundation include:

Enterprise Data Processing and Storage Technologies – Pinnacle’s data center is equipped to efficiently handle the largest of data sets and provide the processing power to perform our analyses fast and efficiently. Coupled with our use of the latest and most advanced software platforms for our analyses, analytics and modeling; our actuarial consultants have the enterprise toolset to provide quality results – efficiently – leading to a faster implementation of results into your business.

Data Transfer and Security – Pinnacle considers the security of data and data transfers to be of the highest priority and employs controls to protect the confidentiality, integrity and availability of all data. We provide a secure/encrypted web-based transfer portal for our clients to facilitate the safe transfer of data over the Internet. We want to ensure the transfer of data is easy, fast and secure.

Collaboration Technologies – Pinnacle takes advantage of the latest web conferencing and collaboration services to provide additional value to our client engagements, internal organization and the actuarial industry as a whole. By utilizing Cisco WebEx™ Meeting Center and Event Center to collaborate with clients, colleagues and internal teams alike, we promote improved communications for project teams, as well as, efficient training and development for our staff. Our monthly Apex Discussion Series webinars provide an opportunity to participate in relevant and timely presentations on the latest industry topics.

Our team is dedicated to providing the enterprise-level technology and support that allows us to lead the way in all of our areas of expertise. By combining years of results-driven experience with the latest applications and technologies; our data services team delivers proven and practical results that fit your unique business needs.Our industry knowledge and expertise includes:

  • SAS® products and platforms - such as SAS 9.1, SAS 9.2, Enterprise Miner, Enterprise Guide
  • Microsoft SQL Server
  • Data conversions from practically any format to any format
  • Advanced report mining and OCR techniques
  • Adhering to the highest Information security techniques and standards  

From time to time, our customers are required to evaluate and certify the information security practices where they have current or potential business relationships. We welcome these opportunities and have been certified to be in compliance with their most strict information security guidelines.

Products  — Data Services

Fast Track Plus™

Fast Track Plus is a compilation of quarterly insurance industry data by state for private passenger auto and homeowners carriers. It provides consolidated premiums, losses, claims counts and exposures by line of coverage (auto) and policy form (homeowners) suitable for use in trending analysis. Fast Track is widely accepted as the most timely, credible, and authoritative source of trend information for personal lines insurance programs. This is because Fast Track data represents the consolidated experience of participating insurers representing a significant sample of industry experience.

This detailed data is jointly released to the state insurance commissioners under the Fast Track monitoring system each quarter by Property Casualty Insurers Association of America (PCIAA), Insurance Services Office, Inc. (ISO) and the National Independent Statistical Service (NISS).
 

Industry Benchmark Data

Finding quality publicly available industry benchmark data is one of the biggest challenges insurance professionals face. This data can be difficult and expensive to acquire and the analysis necessary to turn the data into meaningful benchmarks requires specific actuarial expertise.

Pinnacle’s client base, especially the scores of captives and thousands of self-insureds we serve, requires that we make a significant investment in all manners of industry benchmark data.

To better serve clients, we have created extensive benchmark datasets with user-friendly interfaces that make our expert data analysis -- and flexible and customizable groupings -- available at the click of a button.

These benchmarks are much more than just data. They include Pinnacle’s expert analysis of the data and user-friendly interfaces to access in flexible and customized groupings.

Our unique benchmarks include:

  • Loss development factors
  • Paid and incurred loss, closed and reported counts and held IBNR in many situations
  • Losses gross and net of reinsurance for insurance companies
  • Custom aggregations of unique industry segments (e.g. trucking companies, lawyers professional liability insurers, non-standard auto insurers)
  • Many custom aggregations with geographic details.
  • Expected and historical loss ratios, often with state and/or insurance company or group detail available
  • Loss distributions by limit for most commercial coverages
  • Benefits on-level factors for workers compensation
  • Trend analyses, including Fast Track Plus™
  • Market share and market concentration analyses
  • Underwriting expense analyses, often with state, insurance company or group and custom aggregation available
  • Leading insurer rate levels, class plans and aggregations for many lines and states

 

MSB PerilVision™

Overview
If your company writes homeowners insurance, you already know how competitive the market can be. That’s why you need to know more about the risks you are insuring so that you have every tool possible to protect and gain market share.

Thanks to a strategic partnership between Pinnacle Actuarial Resources, Inc. - the insurance predictive analytics authority - and MSB, the go-to source for property intelligence; you can transform your book of business by leveraging risk-based building characteristics in your pricing and underwriting.

What is MSB's PerilVision™?
Using MSB’s property intelligence and Pinnacle’s predictive analytics expertise, PerilVision™ delivers peril-specific scores and a composite score to predict loss potential on each household. The scores correlate objective and observable property characteristics to loss potential based on your company’s historical claims data and a compiled industry database. This approach provides a solution specific and appropriate for each company, while at the same time allowing even small companies to have the data and support usually limited to large insurers.

As another means of predicting a home’s exposure to loss, PerilVision scores go beyond just using Amount of Insurance. The additional knowledge obtained from PerilVision creates a proven competitive advantage, enabling insurers to price more precisely through enhanced risk segmentation and make more informed underwriting decisions.

Summit ®

Do you think your territorial rating process is accurately reflecting geographic exposure? If you are like most insurers, you are missing competitive opportunities to better price risks at the territorial level.

Summit® can change all that. Instead of using county, city or street boundaries as territories, you can easily and efficiently build finer-detail geographic boundaries based on actual underlying experience. Summit supports new rating territories by smoothing and clustering your experience with various catastrophe models — whether hurricane, severe thunderstorm or earthquake. Specifically designed for ZIP code-defined data, Summit can also handle more refined data levels, such as census blocks or tracts.

Summit's smoothing feature provides you the flexibility to select the smoothing equation, credibility exposure and/or distance standard to specify how far to “reach out” to surrounding ZIP codes. You’ll also see how adding more information contributes to finer, more accurate smoothing of local data.

With Summit, you can develop and evaluate numerous sets of indicated territory boundaries by grouping or clustering areas of similar experience on a Visual Basic platform. You can also perform the clustering process using contiguous or non-contiguous areas based on dollar or percentage differences. The output then provides graphically-displayed diagnostics to determine the statistically-optimal number of territories. Summit also creates a variety of territorial scenarios in one run.

Towers Watson Pretium ®

Pinnacle Actuarial Resources, Inc. has provided support to the Towers Watson Pretium ® user in the United States and Canada since September, 2008. As of September 30, 2011, support will be provided directly through Towers Watson: http://www.towerswatson.com. We thank you for the opportunity to have provided this service to you and your organization.

Pinnacle’s consultants continue to provide predictive analytics consulting services and software solutions to the property and casualty insurance industry. Our expertise in analytics, background in product development and management, and our commitment to knowledge transfer will continue to make us the Firm of Choice for predictive analytics.

Click to visit the Predictive Analytics section of our website.

We look forward to remaining a strategic part of your business team and your organization’s success.

For more information on Predictive Analytics contact us at 309-807-2300 or e-mail us at:
info@pinnacleactuaries.com.
 

People  — Data Services

Photo LeRoy Boison FCAS, MAAA Principal and Consulting Actuary



Biography
 Office Phone: 516-746-7149
lboison@pinnacleactuaries.com
Photo Nicholas G. Kucera SAS® Certified Predictive Modeler Consultant



Biography
 Office Phone: 630-457-1293
NKucera@pinnacleactuaries.com
Photo Roosevelt C. Mosley, Jr. FCAS, MAAA Principal and Consulting Actuary



Biography
 Office Phone: 309-807-2330
rmosley@pinnacleactuaries.com
Photo Gary C. Wang FCAS, MAAA Consulting Actuary



Biography
 Office Phone: 309-807-2331
gwang@pinnacleactuaries.com

Case Studies  — Data Services

Management Consulting

Pinnacle was approached by a major regional, predominantly commercial lines insurer to perform a holistic review of the insurer’s overall operations with an emphasis on determining the company’s personal lines strategy. The review included an historic analysis of industry profitability by line of insurance including various risk diversification scenarios. In addition, we performed a review of the company’s organizational structure with particular focus on the company’s marketing and distribution systems. Pinnacle’s recommendations provided a roadmap which would allow the company to grow more profitably, improve retentions, operate more efficiently and assure that the right personnel were in the right places within the organization.

Vehicle Rating

Pinnacle was approached by a major national personal lines insurer to develop a vehicle rating program to replace the use of the ISO symbol product. Pinnacle, through the use of predictive modeling, assisted the carrier in designing a new vehicle rating program which made use of the vehicle’s actual physical characteristics for both the liability and physical damage coverages. The data used for the analysis was the company’s VIN data supplemented with industry VIN data and appended for vehicle characteristics from an external third party vendor. The resultant program completely eliminated the need for use of the ISO symbol and exhibited greater predictive power than the prior ISO based system.

Publications  — Data Services