Identifies How Tech-based Economies are Key Drivers for Industry
Analytics®, an Insurity company that provides proprietary data,
analytics and predictive modeling for P/C insurers, today published its
sixth annual 2019 Outlook Report. Employing industry and proprietary
research, the report identifies evolving technology-based economies,
informed by data, as the primary determinants in shifting dynamics
within the insurance industry.
Key findings of the report include:
Small commercial market growth is fueling demand for data analytics
Data analytics tools offer insurers an edge in this market, enabling
automation and scalability to improve customer experience and pricing.
The competitive advantage provided by data consortiums enables highly
predictive, actionable insights. Valen’s proprietary research finds:
Synthetic variables appended with consortium data have up to 13 times
more predictive power than variables built with policy-only data.
While large aggregated datasets are still relevant in identifying
useful trends, behavioral and transactional data will drive real-time
decisions for quoting, underwriting, and claims handling.
Valen’s long-standing Underwriting Analytics study supports the market
momentum centered around growing use of data-driven decision making:
There’s a growing trend in insurers adopting data analytics,
indicating a future where insurers will proactively define how changes
in technology and economy affect their business.
Incorporating predictive analytics into underwriting strategy is
higher amongst insurers (77%) compared to the last three years (60%).
On the talent and IT management front, the report finds that 73% of
insurers surveyed indicate moderate to extreme difficulty in finding
data and analytics talent and that most insurers report an IT backlog of
two to three years.
“The evolution of the innovation economy has transformed the industry by
redefining risks, premiums and insurable interests,” said Kirstin Marr,
President of Valen Analytics. “Data and analytics have reached a
strategic level of importance for industry players looking to get ahead
of the curve. Leading insurers are leveraging data analytics as the
gateway to all components of innovation, rather than limited to a
specific use for individual products or initiatives.”
Findings also support growing investor confidence in Insurtechs and an
overall push for innovation in the industry.
The 2019 Outlook Report, including the 2018 Valen Underwriting
Analytics survey results, can be found at www.valen.com.
About Valen Analytics
Valen Analytics, an Insurity company, provides proprietary data,
analytics and predictive modeling for property and casualty insurers. We
work with insurers who are actively looking to utilize modern approaches
to pricing, risk selection, claims triage, and premium fraud. Our
customers are focused on increasing competitive pressures, fighting
adverse selection with innovative solutions, and raising awareness for
the impending “experience gap” with initiatives such as Insurance
Careers Movement. Our customers span many lines of business
including Homeowners, Personal Auto, Workers’ Compensation, Commercial
Auto, Commercial Package, Commercial Property, and BOP. Valen integrates
with several Insurity products and solutions, including DataHouse and
Policy Decisions platforms, enabling improved data management and
data-driven decision making. Learn more about Valen at www.valen.com.
Fusion PR on behalf of Valen Analytics