The Complex Number Calculator (CNC) was created in 1939 by Bell Telephone Laboratories. The CNC had the ability to perform calculations remotely over special telephone lines and is considered to be one of the first examples of remote access computing.
There is no doubt that computing power has increased substantially since then as computing efficiencies and costs have decreased substantially. The insurance industry has been active in taking advantage of these technological improvements through the increase of data collection, the speed of providing information to their customers and agents, and the improvement in predictive analysis.
By utilizing specialized software, statistical knowledge, and data warehousing techniques, many of today’s actuaries have the ability to identify more accurately those consumers that are more likely to purchase a policy, be prone to having accidents, or file a fraudulent claim. This information can be used in the marketing, underwriting, and claim settlement activities of an insurer to improve their hit ratios, loss ratios, and reduce erroneous claims.
What about you? How important is data analysis to your insurance company’s marketing, underwriting, and claim settlement? Which of those three areas do you think benefits the most? Let us know.