Nov
20
2008
It’s all “Pattern Analysis”?
Posted by Paul Vincent
There was an interesting article on predictive analytics and CEP in Insurance & Technology this month, as reported on David Luckham’s site. The article commented on day-by-day / real-time high-volume data analysis using predictive analytics and complex event processing. Though the article didn’t draw the logical conclusion (i.e. there are use cases for applying both forms of pattern analysis, i.e. deep-historical and real-time), nor did it mention TIBCO (!) [*1], it’s a good read.
Notes:
[1] TIBCO is one of the few vendors with strong offerings in both the analytics and CEP technology markets.
Analytics, Complex Event Processing (CEP), Trends | 20 November 2008 |
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By Hans, November 20, 2008 @ 08:26
If you want to get metaphysical, what else is data processing but pattern analysis? But anyway.
The article misses a key point in that it doesn’t distinguish between event driven or real-time analytics and the use of analytics in event driven or real-time decision making.
Real-time analytics are much farther in the future for an industry like insurance. On a basic level, they just don’t have the kind of real time data that would allow for analytics that adapt to every event. Claims resolution, loss rates and fraud reports aren’t updated on a second-by-second basis. At best, they have hourly data but more likely weekly, monthly, quarterly, etc.
So I would see insurance as a place where they do traditional analytics (maybe updated more frequently than in the past, but not on an event-by-event basis) and feed that into a rules system to allow for better automated decisions on individual applications or claims.
The article totally misses this reality, IMO.
By vincent, November 20, 2008 @ 08:41
Hi Hans: for sure it didn’t go into any deep detail. What was significant IMHO was that they placed analytics and CEP in the same article. Maybe next time they’ll consider the operational benefits of joining these approaches?
Interestingly, insurance does have a need for process intelligence, customer / case / market track and trace + sense and respond… not to mention the investment side of insurance carriers is just another type of investment bank.
Cheers