Search
 

InsurTech Center

Best Practices

Next-level risk modeling for the insurance industry

Developing a predictive model that keeps problems at the center establishes a holistic approach to solving issues.

By Chris Cooksey | August 02, 2021 at 05:00 AM
The data scientists and analytics experts needed to develop predictive models can be costly, but when you are starting out and there is a knowledge gap, it is a necessary investment. However, once the knowledge and experts are available in-house, further applications of predictive analytics become less costly, and programs are implemented more smoothly. (Credit: everything possible/Shutterstock) The data scientists and analytics experts needed to develop predictive models can be costly, but when you are starting out and there is a knowledge gap, it is a necessary investment. However, once the knowledge and experts are available in-house, further applications of predictive analytics become less costly, and programs are implemented more smoothly. (Credit: everything possible/Shutterstock)

Most insurers have adopted risk modeling in their business to one degree or another by now, but despite early successes, many are failing to adjust and evolve and are missing out on significant savings and value.

Early in the adoption of risk models, insurance companies tended to build in-house and often focused on pricing models for a large line of business. At this point, risk modeling was new to insurance, and the stakes were high. As such, considerable effort was put into identifying and acquiring data scientists and analytics experts to develop these models. Understanding this was not their area of expertise, insurance leaders created internal research and development (R&D) groups to develop and apply these risk models.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2023 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2023 ALM Global, LLC. All Rights Reserved.