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3rd Party DataWho has it, how to get it and use it

Pittsburgh PAOctober 10th, 2012

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Hi, I’m Kevin

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compdataI live here I like

this I work on this

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Focus @ Risk Metrics

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Data Cloud

Mobile

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Data

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¨ Average 1 Terabyte net new monthly

¨ 209 million records processed YTD 2012

¨ Mange data on 4+ million businesses

¨ 16 people

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“Cloud”

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Mobile

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Second Day Presenter

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Dealing with Big Data through Analogies

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Who do we have in today?

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Show of hands…

¨ Marketing

¨ Distribution

¨ Business Intelligence

¨ Underwriting

¨ Claims

¨ Data Scientists?

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Pioneers

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3rd Party Data

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Who has it, how to get it and how to use it.

¨ You have internal data

¨ What else is out there?

¨ How do you get access to it? 

¨ Acquire, integrate and leverage?

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3rd Party Data

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Why?

¨ Models are made up of variables likely to influence future

behavior or results.

¨ The more relevant data you collect of the right type and at

the right level, the more accurate the prediction.

¨ Accessible

¨ Structured

¨ Scalable

“We don’t win because we have better algorithms, we win because we have better data”

- Larry Page, Google

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Application Potential

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Who is 3rd Party

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Data Markets & Data as a Service (DaaS)

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¨ SaaS + PaaS + 3rd Party = DaaS

¨ Recent emergence

¨ Growing trend

¨ Not yet “one stop shop”

Recent emergence of data marketplaces.

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Access and Delivery Methodologies

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¨ Download

¨ Views

¨ Batch

¨ API

¨ Scrape

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Normalization

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Preparation for integration

Address Triangulation

CASS, NCOA and Lat/long

Initial Data Set

Name Standardisatio

n

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“Fuzzy Logic”

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Mathematical processes that determine the similarities between data sets

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“Fuzzy Logic”

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Same, even though they look different:

¨ “McDonald’s Restaurant” and “Mc Donalds Family Rstrnt”

¨ “Starbucks Coffee Co” and “Starbucks”

¨ “Wendys Old Fashion Hmbrgrs” and “Wendy’s Restaurant”

Science + Art

Different, even though they look similar:

¨ “Jim S. Starbuck” (CPA) and “Jim St. Starbuck” (Starbucks on

Jim St.)

¨ “Wendy’s” vs. “Wendy’s Donuts” vs. “Nails by Wendy”

¨ “Wendys Old Fashion Hmbrgrs” and “Wendy’s Restaurant”

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API

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So what's an API anyway?

¨ Application Programming Interface.

¨ Commands and formats for standardized program

communicationProvidersAnalogies

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APIs and Data-as-a-Service (DaaS)Scalable access to data

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URL API Query

sTe52D4spwCvnAX47RpBHhz608i

XML or JSON Response

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Property ExampleData and Match Overview

¨ 161,560 records in from client¨ 9,719 unable to be standardized¨ 2,052 not in coverage ¨ 94,181 address match (62.62%)¨ 5,074 mailing address match

(3.37%)

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Workers Compensation ExampleData and Match Overview

*For Discussion: RM File, Optimizer Mismatch…

¨ 50,691 policy matches (31.37%)¨ 41,014 with incumbent carrier of

record¨ 38,513 with effective date¨ High effective date correlation

to Hanover effective date¨ 6,982 pickup up by RM n-gram

match algorithm*¨ 43,000 matches available via

APICorrelation to other line X-Date

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Auto ExampleData and Match overview

¨ 31,560 current customers with 1 or more vehicle

¨ 293,100 Total Insurable Vehicles

Auto Outliers (Examples)

¨ Lease Plan USA, Alpharetta GA (34,218)¨ New Jersey Transit Corp, Newark, NJ

(4,050)¨ GSP Transportation, Greer, SC (1,429)¨ Frac Tech Services, Cisco, TX (1,162)¨ City of Houston, Houston, TX (1,125)

84%

16%

Example Record Set

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Type Field Data

Base Recor

d Information

Unique ID NC428

Description L. L. Vann Electric, Inc.

Address 833 Purser Dr

City Raleigh

STate NC

ZIP 27603

Telephone 9197722567

County WAKE

Emp Total 100-499

Year Started 1987

SIC 1731 - Electrical Contractor

Work Comp

Effective Date 12/31

Effective Month 12

NAIC Carrier Number 31325

NAIC Carrier Name ACADIA INSURANCE COMPANY

NAIC Group Number 98

NAIC Group Name WR BERKLEY CORPORATION GROUP

WC Class Code 3179 - Electrician

Type Field Data

Property Ownersh

ip Informati

on

Current Owner Name L L VANN ELECTRIC INCStreet Address 833 PURSER DR

Mailing City RALEIGH Mailing State NC Mailing Zip 27603

Total Assessed Value $715,482 Assessed Improvement Value $539,064

Assessed Land Value $176,418 Assessment Year 2010Total Market Value $715,482

Market Value: Improvement $539,064 Market Value: Land $176,418 Market Value Year 2010

Original Date of Contract 12.02.1997Sales Price $390,000 Year Built 1987

Zoning SBOriginal Lot Size or Area 1.62 AC

Building Area 4,800 No of Buildings 2

No of Stories 1

Commercial Auto

Data

Car Fleet 2Truck Fleet 54Total Fleet 56

Lower Middle (Car) 1Upper Middle (Car) 1

Heavy Duty Station Wagon 2Window Van (Passenger) 2

Mini Sport Utility 2Midsize Pickup 45

Bus 3

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Sourcing

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Continually gather insight

¨ Identification

¨ Evaluation

¨ Implementation

¨ Management

¨ Post Implementation

¨ Source of data

¨ Supply chain

¨ Update frequency

¨ Distribution timeframe

¨ Test support

¨ Rent vs. Acquire

PROCESS IMPORTANT QUESTIONS

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Closing

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More analogies