Can predictive analytics forecast if predictive analytics will transform the insurance industry?
If you were to ask someone ten years ago, you might have thought ‘yeah right.’
But in the last few years, insurers have been investing in data and analytics, and in technology and infrastructure. Their aim is to capture and store more data than ever before, and to build talented data science teams that can turn data assets into valuable, and actionable, business information. There has been a constant stream of adverts for senior data science roles, all tasked with finding how machine learning could add value to insurance businesses. A great insight into how data science can unlock value for insurers can be seen in an interview with Aviva’s Global Director of Customer Analytics and Data Science, Orlando Machado.
So, what should we expect from all of this? The answer seems to be that investment in predictive analytics (and more recently machine learning), will improve customer experience significantly, whilst cutting claims handling time and costs, and eliminating fraud.
Insurers will be able to fast-track claims and process them with little to no human intervention. This is already a reality for many companies like We Predict which uses predictive analytics to enable vehicle manufacturers and suppliers to manage the frequency and cost of malfunctions for vehicles under warranty. US insurer Esurance has taken to using predictive analytics as a means to skipping adjuster inspections on motor claims related to Hurricane Harvey.
To learn more about how integrating predictive analytics with business processes will revolutionize the insurance industry, please read my Finextra article.