When you think about how often we use averages in important business decisions in our industry it’s a bit scary. Imagine building a home in Florida, assuming it needs to withstand only average weather conditions? Accounting for variability is usually critical to accurate decision making, but, it requires more data and more work to extrapolate the key insights. That’s what “big data” is all about.
Big Data no small feat for carriers of all sizes.
Global professional services firm Towers Watson just released their 4th annual P&C Insurance Predictive Modeling Survey that interviewed 63 North American P&C insurers evenly divided among small, midsize and large carriers.
P&C insurers acknowledged that the capture and transformation of data into useful information has turned into a critical differentiator of performance within the P&C insurance marketplace.
The Towers Watson Predictive Modeling Survey illustrates the importance of predictive modeling to insurers’ business. Personal lines carriers nearly unanimously (98%) said predictive modeling is either essential, or very important, to their business and 80% of small to mid-market commercial lines carriers agreed. Continue reading