Mon, 08 Oct 2007 10:25:13 +0000
CEP can be applied in many industry verticals: current favorites for example include financial services, manufacturing, transport / logistics, and telco.
Following on from the recent CTOOUG BRSIG meeting in Hartford, CT (the center of the US insurance industry) [*1], and OMG Insurance Industry Day, it would be interesting to review potential applications for complex event processing in the insurance arena.
Most insurance business is carried out in a relatively “standard” way. This can be seen by the commoditization of certain classes of business from auto to home to small business packages. In the Property & Casualty business, for example, customers buy policies on an annual basis - so there are eligibility and pricing processes, with boundary cases involving the judgment of the underwriters. And sometimes claims are made against policies by customers or third parties. This involves assessment, policy checking, and payment processes. So where is the need for real-time processing here?
Let’s take a look at what might be “situational awareness”, “sense and respond”, and “track and trace” type uses. The obvious ones are:
- fraud: correlating fraud-indicator events in real-time at all stages in the claims value chain.
- real-time policy evaluation: during on-line applications and interaction with agents, are there events and risk indicators that change the application risk profile?
- cross-sell / up-sell / retention: by matching customer interactions with needs and thence relevant offers - in real time - and increasing the product holding ratio of existing customers. Then tackling the renewal cycle and retaining those customers you want to retain.
- investment and/or liability situation assessment: for real-time reports of insurers’ investment and risk portfolios to maintain solvency and ensure optimum investment potential of the investment funds.
- catastrophe modelling: calculating max. probable loss, taking events such as weather, earthquake zones, political stability, ship hull & goods-in-transit monitoring, as well as more general risk monitoring.
These are in addition to the normal business drivers for efficient Business Activity Monitoring and Operational Business Intelligence types of applications.
* * *
It was good to see so many familiar faces at the CTOOUG event (which also saw the announcement of another “source rule” (i.e. non-executable) management system). However, there will no doubt be many more familiar faces at the next big event, which is BR Forum in a few weeks. Given the recent changes in the business rules space, one wonders what surprises or announcements will be in store there?
[*1] The presentations from the CTOOUG event should be up on their web site shortly…
Hopefully, this is the right section.
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