A newly released survey from global advisory firm Willis Towers Watson revealed that personal lines carriers are leading in the adoption of predictive analytics as they tap such technologies as telematics and internet of things.
However, analytics has a bright future among commercial insurers, even as they bring up the rear in using the tool to improve systems and processes. For instance, the survey revealed that while only 15% of commercial insurers use predictive models in claim triage, this is expected to grow by more than double over the next two years to 66%.
In general, property and casualty insurers used predictive models for underwriting and risk selection more by over 10% compared with last year, according to a report by trade
publication Information Management.
“The survey findings suggest that these could become increasingly important areas for performance differentiation, building on what many commercial lines carriers believe models have already helped achieve,” said J.J. Ihrke, senior consultant and actuary, Willis Towers Watson, said in the report.
Big data is a major element in predictive analytics, and insurers expect to optimise these technologies to improve pricing, underwriting and risk selection (92%), management decisions (84%), and loss control and claim management (76%).
Meanwhile, the most useful of the fastest-growing data sources were identified to be internal claim information (41%) and internal customer information (27%).
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