In anticipation of his upcoming conference presentation, Establishing Value: The “Making Impact Through Analytics” Framework, at Predictive Analytics World Boston, Sept 27-Oct 1, 2015, we asked Bin Mu, Vice President, Business Analytics at MetLife, a few questions about his work in predictive analytics.
Q: In your work with predictive analytics, what behavior do your models predict?
A: We use predict analytics to power the business functions across insurance operation. For example, when it comes to Channel, we use marketing mix, channel optimization to drive volume; for Acquisition, we have propensity models to uplift response, retention and cross-sell; for underwriting, we use predictive model for risk adjustment; and for operation, we have models to address fraud, lapse, and claim complexity.
Q: How does predictive analytics deliver value at your organization? What is one specific way in which it actively drives decisions?
A: At MetLife, we always look at incremental, or ROI, as a way to quantify the value of the predictive analytics. In order to that, we have to ensure our business partners are “onboard” with the insights and use that to drive decisions. We apply the Insights That Matter framework in our operation, and it has proved to be instrumental to the success of both sides.
Q: Can you describe a successful result, such as the predictive lift of your model or the ROI of an analytics initiative?
A: I would love to, but our legal does not allow me to disclose any numbers. However, we have seen the uplifts from our test group results at or above the industry average.
Q: What surprising discovery have you unearthed in your data?
A: This is the most favorite part of my job – unearth surprising insights. One correlation we have found is in how weather can impact dental claims. There tends to be a higher claim volume during a bad weather season. I guess when people cannot go on vacation, they go to visit their dentists! LOL.
Q: Sneak preview: Please tell us a take-away that you will provide during your talk at Predictive Analytics World.
A: I want to share with fellow data scientists and predictive analytics practitioners a secret sauce of how to make real impact to the business through the insights they discovered using predictive analytics. As we all have experienced, sometimes we are frustrated with our business partners because they either do not use our analysis to make smart decisions, or they do not use it the right way. What I will share with the audience will address that pain, as well as putting predictive analytics into a healthy growth cycle.
Don’t miss Bin’s conference presentation, Establishing Value: The “Making Impact Through Analytics” Framework, on Monday, September 28, 2015 at 3:55 to 4:40 pm, at Predictive Analytics World Boston. Click here to register to attend.
By: Eric Siegel, Founder, Predictive Analytics World
Eric Siegel is the founder of Predictive Analytics World (www.pawcon.com) — the leading cross-vendor conference series consisting of 10 annual events in Boston, Chicago, San Francisco, Toronto, Washington D.C., London, and Berlin — and the author of the bestselling, award-winning book, Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die.