Traditionally, insurers have relied heavily on data they have collected as well as industry-specific data to inform their business decisions and strategy. However, data science techniques have become more sophisticated, allowing insurers to better understand the relationship between internal and external data sources. Predictive analytics, machine learning, data mining, and artificial intelligence are helping companies extract value from both sources.
In this article, Milliman’s Cormac Gleeson and Eamon Comerford discuss how the use of external data can complement a company’s wider data science initiatives. They also explore some of the challenges posed by working with external data.
Ireland is in the midst of an affordable housing crisis.
Figures published by the Department of Housing, Planning and Local Government
show 6,497 homeless adults in late 2019 with a further 3,778 homeless children.
In total, 1,721 families were in emergency or temporary accommodation including
hotels, bed and breakfasts, hostels, and other temporary accommodation facilities.
In addition, a large number of people are in private rental accommodation,
relying on local authority assistance in paying rent.
A shortage of housing supply seems to be at the crux of the
problem, particularly in the context of increased demand arising from improved
economic conditions and an increased number of large multinational employers. Harnessing
the power of pooled investment funds could help alleviate this crisis while
also potentially providing returns to individual investors.
The proposed pooled investment fund would:
- Build a portfolio of residential properties,
through acquisition and/or development. Initially, it is likely that the focus
of the fund would be on purchasing residential properties, but development of
suitable residential properties would also be possible over time.
- Rent those properties on long-term secure
tenancies with transparent rules around rental increases either to tenants
directly in receipt of the Housing Assistance Payment or directly to local
authorities to supplement the local authority housing stock.
In this paper, Milliman consultants discuss the rationale for a pooled investment fund focused on social and affordable housing.
Organisations completing their second full year of Solvency II reporting are required to submit four additional reporting templates. These additional templates disclose the change in the excess of assets over liabilities over the 12-month period since the previous set of annual reporting templates were submitted to regulators. In this briefing, Milliman’s Barry Murphy and Cormac Gleeson discuss these templates and provide insight on how to approach them.