Editor's Note: Mike Kulp is head of Salesfor Xuber and head of Xuber, US.

Analytics shouldn't be called analytics. Way too geeky andboring for one of the biggest revolutions in the businessworld.

Regardless of what it's called, though, analytics is going tochange the way we live and work forever. Yet while some largeinsurance players are starting to get their heads around it, forothers there still seems to be a mist surrounding the practicalapplication and benefits of taking the analytics journey. In otherwords, beyond the glossy brochures and hype, how are analyticsapplied in the real world, and what do insurers stand togain?

So here are some practical scenarios of analytics in action. Butbefore we proceed, be under no illusion that a purchase order forthe latest analytics software is going to be your panacea. Far fromit. Sadly, there aren't any shortcuts with shiny new analyticssoftware because it is – in essence – only an empty shell thatrequires a foundation of accurate data. To have a chance atsuccess, you'll need to get your data in order — understanding itslocation, quality and accessibility — which will require someinvestment in time and resources.

Now that we've done our reality check, let's get down and dirtywith analytics and take a look at how it's being applied to delivertangible benefits on the street.

Application 1: Slice and Dice

Your boss spots an abnormally high loss ratio in your team'sfirst quarter figures. He's on your case to find out why bytomorrow morning. You've got a feeling it has something to do withthe construction sector, but you need to find the proof.

Before analytics:

You send an email to your team leaders asking them for anindication of performance, but they struggle to get IT to providethem with the information they need because the data available justisn't granular enough.

With analytics:

Using your online analytics tool, you check underwriting yearanalysis and filter reports to confirm your suspicions. You filterfurther, by sub-class, territory and broker and pinpoint a specificcontractor in France. You take action, and respond back to yourboss in less than half an hour.

Application 2: Unifying disparate datasources

You've got a board meeting in 48 hours. You've just been taskedwith investigating the spread of risk across your internationaloperations. But your U.S. team uses a different brand of insurancesoftware than your London branch, while yet another is being usedby the newly acquired firm in France.

Before analytics:

Sadly, the data you need is in different formats, sources andlocations. You sigh and manually request and collate the data fromIT. When it finally arrives you spend hours trying to make applesto oranges comparisons, but your findings are inconsistent andalready out of date.

With analytics:

By accurately correlating data from the three sources together,and analyzing the whole picture, you collate the reports you needand compare total exposure by region in minutes via an onlineanalytics tool. You enter the board room with unified dataintelligence and deliver an accurate 'big picture'viewpoint.

Application 3: Managing global business units inmultiple currencies

You need to handle an important claim that involves risk spreadacross the Middle East, the US, France and London, but they all usedifferent currencies and different languages. Your customer needsan answer by this afternoon.

Before analytics:

Language barriers make it time-consuming to gather theinformation you need to process the claim, and cross-bordercurrency variances cause multiple discrepancies when you finallyget the information. Your customer has to wait until the nextday.

With analytics:

Using your online analytics tool, you access the necessaryinformation via your browser. You select a base currency, andprepare the required analysis for the claim in under anhour.

Application 4: Analyzing trends and asking 'whatif?'

Monday morning, you're reviewing your figures. You spot anunusually high loss ratio developing in a recent underwriting year,and you want to find out how will it pan out.

Before analytics:

Any planning and trending you attempt is going to be educatedguesswork, but you need to be seen as taking action. You ask a fewcolleagues what they think might happen.

With analytics:

Using historical trend data, you model the future of the lossratio that is likely to develop. Early signs indicate anunfavorable pattern, so you track potential poor performance to agroup of small commercial property claims. You change the model andsee what effect a higher excess point would have. Your predictedloss ratio improves, so you recommend a higher excess atrenewal.

Application 5: Analyzing performance

You're planning for a review meeting with the head ofunderwriting, where you need to discuss the last quarter's poorperformance. Several tactical actions are on your mind, includingmonitoring a specific COB in a particular region. But you needfacts to back up your ideas.

Before analytics:

You ask your IT colleague to generate a performance report forthe COB. It still doesn't give you the answer, because you need todrill down further. You ask for another report. Another day passes.“It's going to take a while,” they say. Your boss gets frustrated,and so do you.

With analytics:

Studying an online dashboard item showing GWP by Line ofBusiness for the last 12 months, you identify a drop in performancefrom a specific broker. You investigate further and highlightoperational inefficiencies. You share your findings with therelevant team leader by alerting them online through your analyticstool. Then they focus on internal team operations to improveproductivity, profitability and performance of the broker.

Application 6: Using analytics for strategicplanning

You're a CIO. You've got a board meeting next week where theC-suite is going to undertake a strategic review of operations,with a view to planning for the next three years.

Before analytics:

Everyone brings different reports to the meeting. Comparingreports is challenging, as some include new subsidiaries and somedon't. Some data presented is a month old, and some even older.Plans to cut back or expand are based on gut feel more thananything else.

With analytics:

Using the interactive analytics tool, you and your C-suitecolleagues interrogate, model, adjust and share findings usinggranular and dynamic business intelligence to make better informeddecisions.

The bottom line

Analytics brings together a firm's two greatest assets –information and people – creating a fluidity of empowerment,collaboration and action that just isn't possible with rigidpaper-based reports.

Deploying analytics is not an overnight checklist exercise byany means. But as these examples show – the rewards of analyticsare evident, giving firms the ability to understand so much moreabout themselves and their customers, bringing agility and, aboveall, competitive advantage.

And as for the new name for analytics… we preferhow-are-you-going-to-do-without-ics, but even if the name doesn'tcatch on, one thing is for sure – the technology certainlywill.