It's not difficult to find insurance carriers that use predictive analytics in one form or another, but how well they perform the function has a great deal to do with how much time and effort are spent on the data models.
"They all say they use [analytics] to a degree," says Rebecca Amoroso, vice chairman and national insurance leader for Deloitte. "On the underwriting side, I would say the lion's share [of carriers] definitely is building predictive models or already has implemented them into underwriting processes."
However, the level of success carriers achieve with analytics greatly depends on the quality of the data. As carriers have concentrated on scrubbing that data, the work appears to be paying off. "We're starting to see differences in some of the results [carriers] are generating," reports Mark Charron, principal and U.S. leader of actuarial and insurance solutions for Deloitte.
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