A new report from Aite Group examines property & casualty insurance carriers’ use of predictive analytics in the claims process and finds analytics can significantly improve the claims process and overall business results.
Based on July and August 2011 interviews with 25 senior-level stakeholders from North American p&c insurance carriers and associated service providers, the report provides an overview and history of analytics and predictive analytics as they apply to P&C insurance claims.
The report examines the specific benefits of predictive analytics for P&C insurance, describes the industry’s emerging use of social networking information in claims, and profiles established and emerging insurance technology vendors and their respective predictive analytics tools, solutions, and services. P&C insurance claims represent more than 80 percent of insurers’ costs today, according to Aite.
Every new claim presents insurers with a set of competing management imperatives, and predictive analytics solutions address these imperatives while enabling a better balance of resources among them.
Some of the more valuable and unanticipated benefits of predictive analytics include greater consistency in claims processing, improved accuracy in loss reserving, higher job satisfaction among claims handlers, improved focus on enterprise master data management, and progress toward the shared single view of the customer.
“Predictive analytics solutions are potentially transformational for insurers wishing to improve their operating results while differentiating their policyholders’ claim experience,” says Stephen Applebaum, senior analyst with Aite Group and author of this report. “The most successful p&c insurance carriers will be those that can best leverage new claims technologies and implement continuous claims process innovations that drive down costs and lower claim severities while improving claim service, customer satisfaction, and retention.”
The report profiles major vendors of predictive analytics solutions for P&C insurance carriers: Accenture, CSC, IBM, ISO/Verisk Analytics, L&T Infotech, SAP, SAS, and new entrant Social Intelligence Corp.