CAPE TOWN – Driven by data, insurers must be able to gain meaningful insights and act on them to remain competitive. Kelly Preston, data analytics manager at SilverBridge, believes predictive analytics is a valuable resource to drive this data differentiation.
While predictive analytics is not able to tell the future, it does empower decision-makers with the means to extract information from existing data sets. This can be done to determine patterns and forecast what is likely to happen. Furthermore, it includes risk assessment and scenario planning, all valuable elements for an insurer.
“Adding impetus to this dynamic [data] environment, is the increasing popularity of machine-learning, artificial intelligence, and even smart data discovery capabilities previously unavailable to the insurer. All these technologies work to unlock the hidden potential that exists in the vast amount of unstructured data at insurers,” she says.
On the one hand, predictive analytics can be used in appraising and controlling risk in underwriting, better manage product pricing, and improve the claims process. On the other hand, it can also drive efficiencies inside the business for the insurer to enhance the productivity of staff thereby enabling them to fulfil more strategic functions inside the organisation.