Ellen Carney, senior analyst, Forrester Research
By my reckoning, it's predictive analytics that can help insurers both save money and make money. From the save-money perspective, predictive analytics helps carriers make better underwriting decisions--for instance, is this business we really should be writing?--that improve financial performance. Analytics also can help carriers identify potentially fraudulent claims faster, before the claim gets paid and the carrier has to make costly and usually futile recovery efforts when the fraudster skips town. From the make-money perspective, predictive analytics helps improve marketing campaign and sales performance. The carrier can target the customer it really wants with offers it can be confident will be accepted faster and more frequently, since the technology helps a carriers know its customers better. And that (and great service) keeps customers longer.
( For more opinions from Ellen Carney, click on this article from the Tech Decisions archives.)
