Property and casualty (P&C) insurers are advancing their use of predictive analytics, according to leading global advisory, broking and solutions company, Willis Towers Watson.
As per the Willis Towers Watson’s Predictive Modeling Benchmark Survey, P&C insurers are aspiring to increase big data, notably from the Internet of Things (IoT) and vehicle telematics. Auto carriers expect to garner a lot of driving data from apps, connected cars and telecoms in the coming years.
Two-thirds of U.S. P&C insurers incorporate predictive models for underwriting and risk selection. And while personal lines carriers continue to be the market’s predictive analytics leaders, standard commercial lines, e.g., claim triage; fraud potential; litigation potential and case reserving, are steadily advancing their use.
According to the survey’s results, insurers must unlock the value of data to sustain predictive model use. It is expected that over the next two years big data will help insurers with underwriting, pricing, claim management, risk selection and better management decisions.
To fully expose data’s potential; insurers need to unravel internal roadblocks. P&C insurers participated in the survey consider people as the biggest challenge to spawning business value from data. This is because; insurance companies often lack executives with the right skills and training. Data quality and reliability, cost considerations and funding, are some of the other concerns.
While many insurance companies are embracing data, challenges persist. Insurers who want to have greater avenues must integrate flexible IT frameworks, analytics techniques and skills necessary to effectively harvest data.
Please follow this link to see the infographic – How U.S. P&C insurers use predictive models and big data?
Disclaimer: This infographic has been designed by Willis Towers Watson.