Back in April, A.M. Best cited the use of predictive analytics by carriers as a factor in improved bottom lines and balanced underwriting cycles. But exactly how are property/casualty underwriting organizations using the analytics, and where are they getting the biggest bang for their investments?Executive SummaryThere’s no lack of chatter among insurance industry executives about how predictive analytics is improving their businesses, but it isn’t often that they reveal the details of initiatives that are reshaping their underwriting processes. Here, a handful from AXA XL, Chubb and QBE open up to veteran insurance journalist Russ Banham about turning losses into profits and finding competitive edges with structure data and predictive analytics.
The tools, which mine data to unearth statistical correlations and anomalies, provide rapid insights into client risk profiles and market trends. This information guides more informed decisions on current and prospective account insurability, market appetite, and refinements in insurance coverage limits, terms and conditions to widen profit margins.
To get a better sense of how predictive analytics is being deployed by P/C insurers to redefine their underwriting aims and processes, we reached out to three carriers leading the way in their application. In alphabetical order, here are their stories.