How predictive analytics is quickly changing the P&C industry

Predictive analytics is the use of various statistical techniques from data mining, predictive modeling, AI, and machine learning to analyze historical and real-time data to make predictions about future events. (Photo: Andrey Popov/Adobe Stock)

Predictive analytics has been immensely useful within the insurance industry — especially in appraising and controlling risk. Through data mining, predictive modeling, statistics, machine learning, and artificial intelligence (AI), the most common use cases have led to accurate insights that aid in underwriting policies and personalized client services.

As the tools for accurate analytics are improving, predictive analytics is disrupting the insurance industry, especially within underwriting, claims management, and distribution.