P&C Insurance Predictive Analytics Decoded

P&C Insurance Predictive Analytics Decoded

Authored by Ameex Technologies on 10 Dec 2020

Over the past few years, insurers attribute diminished operational problems and costs pertaining to underwriting to deployment of revolutionary, sophisticated predictive analytics solutions. Especially during the natural calamities (including pandemic era), predictive analytics tools have proved the best of friends in terms of productivity for insurance marketeers and sales agents. The innate advantages of these tools are finding fresher, valuable places of application across insurance functional areas.

Predictive analytics in P&C insurance – Current scenario

The power of predictive analytics tools lies in their inherent property of sourcing data from myriad sources.  P&C insurance data is obtained from both within the company as well as from external sources. These are intricately processed by the predictive analytics tools to predict insureds activities precisely and pre-emptively. For instance, on accident insurance, insurers source their data from a multitude of supplies such as telematics devices, smart home devices, social media and agents/brokers. The predictive analytics tools seamlessly process these data from disparate sources which bring out radical results during customer engagements, underwriting and claims processing.

Predictive modelling in P&C

Applications of predictive analytics in P&C Insurance are finding newer avenues of application like never before!!!

One of the famous applications of predictive modelling in P&C insurance is in terms of ‘What-if analysis’ that is already in use among an array of insurance operations. Predictive modelling for over a decade now has been a part of handling massive insurance underwriting preparations, create filing data and change analytics for assessing the effect of changes in account books. Ultimately, it is the deployment of the precise predictive modelling in P&C insurance operations that will produce optimal productivity and efficient new product launches. Following are a few specialized areas of P&C Insurance in which predictive analytics is finding uses in a big way in the years to come.

Seamless P&C insurance risk selection and easy custom costing!!!

Though a part of P&C insurance for over a decade now, especially among Insure techs, P&C risk selection tools have shown exponential enhancements. This has been possible due to transparent data insights availability and driven by modern data analytics applications. Today’s database technologies are providing seamless access to a variety of massive insurance data in the form of data warehouses, data lakes etc. Such sophisticated data technologies allow insurers to easily access a huge repository of actionable data from wide-ranging sources.

Seamless custom pricing

Since the easy actionable data access for insurers are first-hand, they provide the most valuable insights to insurers, and allow them to precisely price them. Following are the myriad of real-time, actionable data sources that insurers today access:

  • Feedbacks from Social Media, smart data devices
  • Real-time collaboration between Customers and Claims specialists

During earlier times, such insurance data for risk selection and pricing were sourced from external channels such as past criminal records of applicants, applicant credit risk history etc. However, today’s predictive analytics technology has given precious access of exact real-time data to P&C insurers for precise risk analysis and custom pricing.

Pre-emptively spot to stop customers who are likely to cancel or lower coverage!!!

Provide upbeat indications to insurers on customer issues to stitch-in-time!!

Top-class predictive analytics technology applications facilitate insurers to proactively identify customers at an early stage, who run the risk of cancelling or lowering their coverages. Further, advanced analytics, collaboration and CX tools provide highly sophisticated data insights to insurers on customers who could gradually becoming unhappy with their specific coverages or the insurer. Insurers can wield such tools to contact such customers early and provide them with the right support and assuage their issues pre-emptively.

Proactive fraud detection

One of the key challenge  of P&C insurers lies in averting very frequent fraudulent P&C claims. Advanced predictive analytics tools provide just the right answers to P&C Insurers to pre-emptively detect and very often avert fraudulent claims. In the recent past, insurers are tapping the huge potentials of social media platforms to precisely identify possible fraudulent claimant behaviours online and issue a red flag against their transactions.

Further advanced predictive models available at the service of today’s insurers facilitate them to identify possible mismatches between claimants and the third parties involved such as repair workshops.

Automated claims sequencing and budgeting

Predictive analytics has started playing rather a very big role in matching customer’s expectations in terms of seamless technology collaborations, services, and CX.  Using advance analytics techniques, carriers of today are able to prioritize P&C Claims from customers, sequencing them for servicing, and ultimately saving time, money and resources in a huge manner. These are the basic technology ingredients that any carrier would want to wield for extending the best of customer satisfaction and retention.

  • Proactive customer requirement identification
  • Providing seamless CX and collaboration
  • Proactive budget data provisioning and tweaking on the budgeting screws of carriers
  • Automated use of these historical data for future claims processing

Spotting costly P&C claims beforehand

The P&C insurance businesses very often encounter claims that get converted to high Claim values and thereby becoming high risk claims due to unprecedented circumstances. They are popularly known as ‘Outlier Claims’ by the insurance industry. Insurer use the huge potentials of advanced predictive analytics tools pre-emptively flag such claims transactions using historical claims data for detecting similarities with current Claims.   P&C Claims loss risks and complexities arising out of such Claims can be detected by the predictive analytics tools and insurers can be notified in advance.

Digitally streamlining claims

Predictive analytics tools bring in a more disciplined and streamlined process in claims transactions. Normally what would take around weeks or months of time to process claims, now take just a span of a few days or even hours. Carriers and experts can thoroughly scan through and analyse the historical claims data to make pre-emptive, productive enterprise decisions.

P&C insurance market trend analysis, competitor edge and seamless CX

Predictive analytics aid insurance marketeers in a huge way to anticipate trends in the P&C insurance market and analyse competitor behaviour. Activities such as new product launches, customer collaborations, creating delightful CX, predicting behavioural patterns of individuals at large using social media and connectivity devices, targeting and market positioning as well as gaining competitor advantage etc which were once considered complex tasks are now seamless processes using predictive analytics tools.

To know more about Ameex, write to us analytics@ameexusa.com