Although P&C insurers say they are comfortable with predictive modeling, they also state that its implementation is uneven, lacks uniformity and differs by line of business and carrier size, according to Towers Watson's Predictive Modeling Survey.

Nearly all (97%) of the 34 personal auto insurers surveyed use predictive modeling (PM) and say it remains essential for risk selection and rating. On the homeowners' side, 73% of the 33 carriers surveyed currently use PM. In both of these segments, this represents an increase from the previous year, in which 80% and 60%, respectively, incorporated PM in risk selection and rating. 

However, on the commercial side, fewer carriers incorporate PM into their lines of business: Just 61% in workers' compensation, 51% in commercial property, 47% in commercial auto, 44% in specialty and 43% in general liability. 

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