Just a few weeks ago, a Leonardo DaVinci painting sold at auction. Once thought lost, it resurfaced in the early 2000’s and sold for the astronomical price of $450 million. But equally as impressive were the years of significant restoration work that brought the painting from obscurity to life.
Having only completed a handful of paintings in his impressive lifetime, each DaVinci is a genuine masterpiece. The upkeep requires teams of skilled restoration artists, historians and many others to keep the work true, but also incorporate the science to help withstand the ages. Predictive models, like any piece of art, any car, any human body, need maintenance. Here are some important reasons why:
Models are built on an initial set of variables. But over time, they need an update to account for previously uncalibrated variables that become more relevant. Models can undergo a “refresh” to accommodate for this, to help optimize performance and adoption as well as more targeted insight.
Insurers often handle rate updates on their own. But do those rate changes get factored into models? If not, insurers may not comprehend the impact on the models, in essence, flying blind.
Underwriters may go through training when a model is initially introduced. But professional underwriting experience and working with a model over time provide greater insight and a gut check to how models work. This also helps boost adoption and usage. Continuing education for all parties involved is important.
Data is a powerful tool and it can be used to make strategic business decisions. Sometimes that insight can come from a third party with a bigger view. Valen’s Manage application, for example, uses leading indicators to provide an entirely new set of metrics and deeper knowledge not previously available. It can be crucial in providing executive insight to shape growth, expansion and overarching strategies.
If you’ve spent the resources for the model, you need to invest in keeping it at its full capacity to achieve business goals and measurable outcomes.
With some maintenance, DaVinci’s painting is seeing a new light of day. Is it time for you to do the same? Let us know if you are interested in a consultation for your current model.
ABOUT THE AUTHOR:
Kirstin Marr, CMO of Valen Analytics, has a passion for building companies that invent leading-edge technologies to improve customers’ lives and solve the inefficiencies that exist in traditional marketplaces. As the chief brand advocate for Valen Analytics, she helps pave the way for Valen’s clients to lead the innovation initiatives required to compete in today’s marketplace. Before Valen, she ran business-to-business marketing for internet technology pioneer and market leader, ServiceMagic.com (now HomeAdvisor).
Kirstin has a long-standing commitment to philanthropy and community leadership. Most recently, Kirstin is leading the Insurance Careers Movement coalition, a grassroots initiative of more than 850 insurance organizations raising awareness of what insurance has to offer young professionals. She has been involved in several non-profits focused on Science, Technology, Engineering and Mathematics (STEM) education, among other non-profit causes.