This is the second in a series of articles by Valen Analytics looking at the hurdles that insurers must overcome to effectively implement and gain value from data analytics programs.
Executive SummaryThe C-suite has some challenges ahead in finding ways to encourage underwriters to adopt predictive analytics in a way that helps them better understand risks. Kristin Marr, president of Valen Analytics, writes here about a number of things executives can do to boost underwriter buy-in of the technology.
After deciding to implement predictive analytics, insurance leadership will likely need to address the operational issues of bringing an analytics program from strategy to production. One such hurdle for the C-suite is encouraging underwriters to adopt new data solutions to improve their understanding of risks across a book of business.
Barriers such as institutional culture or fear of being replaced can lead underwriters to work around systems, or even avoid them altogether. While largely inaccurate beliefs may manifest this behavior, these concerns can be overcome by executives that take the time to target their analytics initiatives on measurable performance metrics and include all stakeholders in each step of the implementation process.