CIOReview | | 9 FEBRUARY 2023often as an interactive tool, in ways that reflect the company's book of business so that we can visualize catastrophic modeling. This benefits our policyholders because we're able to calculate more accurate pricing, and it benefits the company with better risk concentration, which informs decisions we make around reinsurance ­ both the limits we set and how much we retain. Another way we leverage data visualization is by using artificial intelligence (AI) to determine future risks. AI applications can look for patterns in a range of insurance-related categories, like claims activity for example, or customer retention. With AI-driven predictive analytics, we essentially look at the past to help us forecast and make decisions about the future. When patterns repeat, we can forecast a certain event and if needed, manipulate the data in a virtual environment to create alternative scenarios and outcomes. We can ask "what if," without assuming the risk, and then make business decisions that align with the best outcome from our modeling. This can ultimately improve claims costs, and relationships with customers and yield a host of other measurable benefits to the company. Finally, a third example comes from the proliferation of technology designed to keep consumers safe. Modern vehicles use hundreds, if not thousands, of sensors to collect data points that tell the vehicle what actions to take. The data being collected in real-time can tell the vehicle to perform actions or maneuvers that will keep drivers and passengers safe or even potentially avoid a crash. Similarly, technology companies and property and casualty insurers are translating that concept to homes, innovating ways to use sensors and real-time data to create a 3-D visual model of the home. Using existing technologies that many consumers already embrace ­ such as Nest or Ring ­ we can detect potential threats like water leaks and power surges before they become more significant issues that could lead to a costly claim. For P&C insurers, data visualization can mitigate risk to help save our policyholders from disaster, injury, and unnecessary claims. By leveraging tools that allow us to take risks in a virtual environment, we can better protect our community and deliver world-class service and experience that allows our customers to worry less, and our business to succeed. Chris Purcell is vice president and chief information officer for PEMCO Mutual Insurance, a Seattle-based personal lines insurer serving the Pacific Northwest for more than 70 years. Purcell's experience in information technology spans a wide range of industries, from green energy and construction to sports, entertainment, and financial services. He's driven innovation and digital transformation initiatives for start-ups and Fortune 500 companies alike. As a property and casualty insurance provider, much of our business revolves around collecting and analyzing data to help us better understand, predict and mitigate risk
< Page 8 | Page 10 >