The forward-looking statistics made possible through predictive analytics have two equally powerful applications.
- Bottom up – Individual account management for pricing, underwriting triage, audit and inspection optimization, claims management, and fraud detection.
- Top down – Portfolio-level management to accurately predict shifts in your book and future performance well so you can run your business proactively.
Hindsight Will Cost You
Analytically-driven insurers know more about the market, the risks they insure, and what their customers want.
As an example, did you know that just 10% of your book contributes over 50% of expected profit?
Valen studied the portfolios of commercial insurers and found that this surprising statistic holds true across a diverse set of companies and lines of business. This helps demonstrate the real advantage, and potential threat, of data analytics.
The insurer who can accurately identify the best 10% of the market is going to be able to compete on, and win, this business.
Bottom line: If you’re not using data analytics, you’re relegated to gaining insights in hindsight, making it tough to compete with data-driven insurers.
Valen’s Real-Time Results Capabilities
We put relevant, actionable information in your hands so you can do something previously impossible – make decisions while there’s still time to impact the outcome. No more waiting 12-18 months or more to “see how a policy bakes out”. You can use predictive analytics to forecast future performance and react accordingly.
- Identify Vulnerabilities & Opportunities – You’ll know if you’re coming under fire from a sophisticated competitor or have an opportunity to seize a profitable segment of the market.
- Reliable Forecasting – What could you improve if you could forecast your accident year loss ratio each year by the end of June? The forward-looking statistics made possible through predictive analytics offer an entirely new set of top-down, portfolio-level management tools.
- Advance Market Knowledge – You don’t need to be beholden to macro cycles in the market. Leading insurers armed with the right data are deciding where they want to play in a market cycle, they are not getting pushed around by it.
- Policy Level Insight – Just in time data about individual policies allow end users to make informed decisions on risk selection, pricing and claims management.
- End User Aggregated Insights – For front line users making individual policy decisions, we show the result of all their decisions in a single view. An individual underwriter, for example, can look at their own P&L in real-time and know if they are on target.