For P&C insurers, predictive modeling and analytics offer the promise of greater profitability and operational efficiency in an environment that is increasingly competitive, commoditized and characterized by persistently low interest rates. And so, the need for predictive modeling talent is growing, and the competition for talent - from inside and outside the industry - is intensifying.
Insurers derive a host of benefits from predictive models and analytics, and usage is pervasive and growing aggressively. In fact, 82 percent of insurers now use predictive modeling in one or more line of business, more than 40 percent now use analytics for pricing and rating, and 20 percent for underwriting, according to a joint study from Earnix, an analytics software provider, and ISO, a supplier of statistical, actuarial and underwriting claims information. Ranked by survey participants, benefits include increased profitability, cited by 85 percent, followed by risk reduction (55 percent); revenue growth (52 percent); and better operational efficiency (39 percent).
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