March 2, 2016 by Staff
Just 17 percent of respondents use predictive modelling for claim triage, but 52 percent plan to do so within the next two years. Similarly, 10 percent of respondents use modelling to evaluate litigation potential, while 51 percent plan to do so in the same time frame.
Insurers also predict they’ll continue to use big data–such as usage-based insurance–for pricing, underwriting and risk selection. They’ll also begin using it to make better management decisions and for loss control and claims management.
“Insurers that embrace predictive modeling complexity by focusing on data enrichment, advanced analytics and technology can achieve a significant return on their investment,” Willis Towers Watson’s director of P&C practice Klayton Southwood said in a release. “Carriers that catapult beyond their competition do so, in part, by leveraging superior data organization and analysis. For those insurers aspiring to unlock the potential of big data, they must be strategic, persistent and consistent.”
This story was originally published by Canadian Insurance Top Broker.