- Risk scoring & pricing for commercial lines.
- Determine premium audit type for increasing net additional premium.
- Fraud detection.
- Claims triage to improve loss development, subrogation recovery and litigation.
|
If you're not already in the race...
|
"In the rapidly changing and highly competitive soft market most insurance companies find themselves, it no longer is a question of 'if' they will adopt Business Analytics or even 'when.'
It's now a question of how fully they can commit to leveraging the data they touch every day to gain market insight and improve market positioning,"
- Mark Gorman, Principal of
Mark B. Gorman & Associates LLC.
|
The use of predictive analytics for risk scoring and pricing has proven itself in personal lines. Companies without predictive analytics are being adversely selected against. Add to that a sluggish economy and even the investment income may not be enough.
Companies are now deploying predictive analytics for commercial lines too. Not only for pricing, but risk scoring as well to determine tier placement, and accept/reject/referral of risks.
They are also using predictive analytics to increase premium audit net revenue. Rather than using only premium bands and/or class codes to determine which accounts to field audit, our analytics uses sophisticated pattern recognition technology to identify those policies with an exposure and premium mismatch and then recommends the type of audit to perform - mail, phone or physical.
Predictive analytics can be used to triage claims and detect fraud. Pinpoint claims that have escalation and or fraud potential early in the process for proper handling. Extend analytics to improve subrogation recovery and minimize litigation.
|
|
