Hazards Await if Data Isn’t Treated With Care and Respect — Nationwide Chief Advanced Analytics Officer

(US & Canada) Shannon Terry, Chief Advanced Analytics Officer at Nationwide, speaks with Marty Poniatowski, Director at AMD, in a video interview about his professional trajectory and background, the importance of data at Nationwide, and building a comprehensive data strategy for the organization.

Nationwide Mutual Insurance Company and affiliated companies, commonly shortened to Nationwide, is a group of large U.S. insurance and financial services companies based in Columbus, Ohio.

At the outset, Terry digs deeper into his role as a Chief Advanced Analytics Officer, emphasizing the word “advanced.” While the word attracts questions regarding its meaning, he analogizes it with contemporary math.

Being a century-old company, Nationwide has been built on data and math; however, AI and machine learning have created the “new math,” says Terry. He adds that with the role, the company could attract multiple opportunities to adequately carry out the mission of serving customers and protecting people.

Further, Terry says that the company’s mission is to protect people, businesses, and futures with extraordinary care, and this is foundational to what it does. With a team of close to 140 Ph.D. and Masters-level associates from various disciplines, he works on problems across the enterprise. The problems include underwriting, pricing, sales distribution, and claim settlement.

Shedding light on his background, Terry shares how he started off in social research, with a deep interest in math and statistics and applying those to social problems. He initiated his career as a programmer at a small startup.

Eventually, in the 90s and 2000s, Terry went ahead to the next level, given his background in technology, programming, and data architecture. Reflecting on work today, he says it is just using data and math to do what has always been done.

Sharing a fun fact about himself, Terry acknowledges being a metalhead and also recalls the good times when he used to be a guitarist in an active metal band.

Moving forward, he discusses the data usage and challenges at Nationwide. He maintains that data is critical to the essence of the company, as it does not produce traditionally manufactured products. Rather, the product is a promise of sorts, which is instantiated through insurance policies or annuity contracts on the financial services side.

Delving further, Terry notes that, in a colloquial sense, while manufacturing things from data, in a business that is inherently predicated on trust, it is critical to treat data with respect. The company requires data that allows underwriting, technical writing, and claim fulfillment.

It is high time for organizations to start thinking of data strategically as an asset, says Terry. The data of today will be parlayed into future products and services to protect members, customers, and business partners in the future. Therefore, it is crucial to ensure capturing, curating, and performing hygiene checks on that data while treating it as one’s own.

Furthermore, Terry considers it imperative to build a comprehensive data strategy that considers all of those dimensions. He mentions a philosophy that says, instead of throwing in all the math, one must bludgeon the data with computation to see what can be mined out of it.

Thereafter, Terry states that good, responsible AI really starts with disciplined problem-framing. It must ensure a start with clear intentions and use data collected in the course of business.

The used data must be the appropriate data that has been authorized to be shared. For instance, he says, while underwriting a life insurance policy, the level of data that someone chooses to share will be different and the authorizations will be different.

Referring to the quote, “Data is the new oil,” Terry asserts his belief that data in and of itself creates an information revolution that is similar to the Industrial Revolution. Much like the problems brought by the Industrial Revolution, hazards await if data is not treated with due care and respect, he concludes.

CDO Magazine appreciates Shannon Terry for sharing his insights with our global community.

*Note: This interview was originally recorded on June 24, 2024