A new report from Aite Group examines property & casualtyinsurance carriers' use of predictive analytics in the claimsprocess and finds analytics can significantly improve the claimsprocess and overall business results.

Based on July and August 2011 interviews with 25 senior-levelstakeholders from North American p&c insurance carriers andassociated service providers, the report provides an overview andhistory of analytics and predictive analytics as they apply toP&C insurance claims.

The report examines the specific benefits of predictiveanalytics for P&C insurance, describes the industry's emerginguse of social networking information in claims, and profilesestablished and emerging insurance technology vendors and theirrespective predictive analytics tools, solutions, and services.P&C insurance claims represent more than 80 percent ofinsurers' costs today, according to Aite.

Every new claim presents insurers with a set of competingmanagement imperatives, and predictive analytics solutions addressthese imperatives while enabling a better balance of resourcesamong them.

Some of the more valuable and unanticipated benefits ofpredictive analytics include greater consistency in claimsprocessing, improved accuracy in loss reserving, higher jobsatisfaction among claims handlers, improved focus on enterprisemaster data management, and progress toward the shared single viewof the customer.

“Predictive analytics solutions are potentially transformationalfor insurers wishing to improve their operating results whiledifferentiating their policyholders' claim experience,” saysStephen Applebaum, senior analyst with Aite Group and author ofthis report. “The most successful p&c insurance carriers willbe those that can best leverage new claims technologies andimplement continuous claims process innovations that drive downcosts and lower claim severities while improving claim service,customer satisfaction, and retention.”

The report profiles major vendors of predictive analyticssolutions for P&C insurance carriers: Accenture, CSC, IBM,ISO/Verisk Analytics, L&T Infotech, SAP, SAS, and new entrantSocial Intelligence Corp.