After you have ensured that you are collecting accurate and relevant data, what is next? Strategic analysis of your data using Predictive Analytics provides you with information that can give you a competitive advantage…and make you more profitable. Our insurance experts provide a variety of analytical services designed to help insurers manage and understand the vast amount of information that they collect.
What is Predictive Analytics?
The term Predictive Analytics describes a collection of techniques used to create models that help predict future events or behaviors, with a special emphasis on making predictions regarding individual members of a group. These models identify trends, patterns, or relationships within your data that may not be readily apparent.
What Can Predictive Analytics Do for You?
Predictive analytic techniques unlock an insurer’s data. Given a complete and robust dataset, Predictive Analytics can be used to address a number of operational areas of the insurer. Some uses of Predictive Analytics include:
PRODUCT MANAGEMENT
- Develop more accurate pricing plans
- Identify and statistically support new rating variables
- Develop individual risk scoring procedures for underwriting or rating purposes
CLAIMS/UNDERWRITING
- Identify potentially fraudulent claims.
- Score claims based on the likely size of the settlement so resources can be allocated to higher priority claims.
- Establish more accurate case reserving practices.
MARKETING/SALES
- Develop information about applicants that their competitors do not possess.
- Analyze the purchasing patterns of customers.
- Filter out applicants who do not meet a pre-determined model score.
- Focus on customers more likely to buy, thereby increasing hit ratio.
- Better predict insured’s reactions to product or pricing changes.
Why Choose Merlinos?
We are insurance experts with more than 300 years of combined actuarial consulting experience. This knowledge allows us to understand what you are trying to achieve and what to do with the results you get from your analyses. Our deep industry knowledge allows us to tailor our solutions to your individual needs and circumstances. Finally, our regulatory and product management expertise will help you stay in compliance and achieve approval from state officials for these often challenging technical projects.
