In 2013, Earnix and ISO, two consulting companies, conducted a joint survey on how predictive modeling and analytics are used throughout the insurance industry. Responses were gathered from 269 individuals representing companies that sell personal and commercial insurance in the United States and Canada.
According to this 2013 Insurance Predictive Modeling Survey, the majority of insurance companies utilize predictive analysis with as many as 82 percent of them claiming that their companies use predictive analytics in at least one line of their business:
“The survey confirms that the industry has recognized the value of predictive analytics but still faces challenges in this area,” said Phil Hatfield, vice president of operations at ISO Innovative Analytics (IIA), “Data inefficiencies, scarcity of analytic talent, and the cost of that talent can hold companies back from completing as many initiatives as they would like.”
Insurance industries collect a wealth of valuable information, therefore using IBM SPSS Modeler, we want to show you how predictive analytics can help insurers gain more business insights and create personalized, profitable customer relationships.
First, start with aggregating and accessing the large volume of historical data from different resources. Next, build up predictive models to dig into deeper individual claim levels which allows insurance representatives to focus on critical indicators that would determine how to best handle the claims.
Standing at a manager view, predictive analytics enables insurance companies to better handle information obtained from real time environments and optimize all types of decisions. From a customer’s view, the cycle of investigation is shortened. Instead of weeks, now customers would be able to get their payment in days, improving customer satisfaction.
Learn how Cresco International can help your insurance company streamline and improve claim processing using predictive techniques – call us or email us today!