While the presence of predictive analytics in the U.S. property/casualty (P/C) industry has become increasingly prevalent, its specific use has varied by company and line of business, according to a new A.M. Best special report. The Best’s Special Report, titled, “Predictive Analytics Aids Performance, Balances Underwriting Cycles for Commercial Lines Insurers,” states predictive analytics and related tools such as artificial intelligence, machine learning, big data and predictive modeling often focus on the same concept—using statistics and probabilities to predict outcomes. Proper use of predictive analytics helps organizations improve their effectiveness and bottom line results. Best says in the report that it has witnessed changes within the commercial lines segment’s use of predictive analytics that have enabled companies to be more responsive to shifts in market dynamics.
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