This is the third 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.
When the pressure’s on to grow your business, it’s tempting to look for quick answers.
For insurers looking to expand into new states, new classes or new lines of business (LOB), there’s the added pressure of minimizing the new business penalty that often comes from the lack of experience writing in those segments. Executive SummaryShotgun use of predictive models across all new business in new territories and lines is a recipe deteriorating underwriting results, notes Valen Analytics President Kirstin Marr. Here, Marr outlines two other common pitfalls: relying on in-house data, potentially missing buckets of opportunity; ignoring stats, such as higher-than-usual bind rates, which are signs of trouble.