Property and Casualty Insurance Actuaries were, and are using advanced math and financial concept to analyze and monitor the costs of risks, which have been the stalwarts of the insurance business forever. Indeed, the analytics operations performed by actuaries are critically important to an insurer’s continued existence and profitability, but innovation in technology and induction of Insurance Analytics; actuaries more or less have got their work cut-down.
Over the last decade, revolutionary advances in insurance technology and the explosion of digital upgradtion of data sources have expanded and reinvented the core service areas for not P&C insurers, but the insurance business as a whole. Today’s advanced analytics in insurance pushes far beyond the boundaries of traditional actuarial science.
Impact of Property and Casualty Claims Management and Analytical Services
With injecting analytics in insurance, it’s time for insurers to consider how it has affected Property and Casualty insurance underwriting. Instead of relying only on internal information sources such as loss histories, which was the traditional norm, P&C insurers started to incorporate customer behavior-based credit scores from credit bureaus into their analysis, when they became aware of empirical evidence that people who pay their bills on time also are persons who might not end-up letting the insurer face any losses.
While credit scores used in auto insurance underwriting has been a contentious issue for the industry with consumer groups, the addition of behavioral and third-party sources was a significant leap forward from the claims histories, demographics, and physical data insurers analyzed in the past.
At the moment…
- A new wave of innovation and applications of advanced insurance analytics is emerging in all types of product lines and business functions.
- Life insurers and Property and Casualty insurers have lagged behind other insurance lines (Auto), but they are now catching up in their adoption of predictive and optimization models in business processes, claims management and settlement, underwriting and to gaze fraudulent activities.
- The overall impact of these developments will be greater depth and breadth of analytics insights throughout organizations, significant improvements in claims management processes, and new products that deliver greater value to customers and to society.
While the impetus to invest in Property and Casualty Insurance Analytics has never been greater for insurance organizations, the challenges of capturing business value should not be underestimated.
Do keep in mind that technology, changes much faster than people. The key for P & C insurers is to motivate their highly skilled experts to adopt the newest tools and use them with creativity, confidence, and consistency. If the deep problem of monitoring and managing claims is being a burden on your handlers, allotting the services to Inniti Alliance, will heed in sustaining Claims Management undertaking, while the insurance company can foresee future events through our Analytical platforms.