The Computation of Computational Insurance™

Exactly what is being computed in “Computational Insurance™”? Fundamentally, it is computing the decisions required to maximize business value while handling the vast amount of input from the many sources that exist today. In order to optimize your organization, a set of equations is needed that define business value. These equations can be thought of as the prime directives of the organization.  For insurance, the business-value equations consist of premiums, return on capital, claims, expenses, and customer acquisition, and others. These are often expanded in great detail for financial projections and other business value, but at their core they are a set of fundamental equations.  By optimizing these equations, using vast amounts of information, an intelligent, agile system can computationally analyze all the interdependences required to optimize an entire business.

In tackling such a complex problem, it is often advisable to divide it into manageable parts. A Megaservice™ is the computational architecture required to enable Computational Insurance™. A comprehensive and mutually optimized set of Megaservices™ combine to create the Computational Enterprise.

A Megaservice™ automates and optimizes an entire function, not just a task – and ultimately optimizes an entire business.  It accomplishes this by utilizing advanced machine learning to automate decisions and assess their impact. This drives the optimization of each department, both individually and collectively, understanding and calibrating for all aspects and interdependencies in a continually optimized approach. Ultimately optimization is based on the enterprise’s foundational business value equation. As explained earlier, a Computational Enterprise is more human centered than today’s enterprises. In a traditional enterprise, the software controls the flow of information, assigning tasks for employees to perform, and giving managers data to oversee how the employees are doing those tasks.  In a Computational Enterprise, computers are doing the tasks, and your people guide, enhance and supervise the orchestration of work being done

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