Shifting Market Conditions, Roadblocks to Innovation and Forward-looking Metrics Through Predictive Analytics
DENVER – December 8, 2015 – Valen Analytics, a provider of proprietary data, analytics and predictive modeling for property and casualty insurers, today released its 2016 Commercial Lines Outlook Report. The research addresses changing market dynamics and internal obstacles that insurance carriers face today, and highlights the importance of adopting a cohesive predictive analytics strategy with organizational buy-in as a pivotal component.
The influx of outside tech competitors, the continued growth of the data-driven insurer, and the rise of the 24/7 consumer all point to the large-scale changes happening within insurance. Carriers that have yet to adopt technology into the lifeblood of their organization leave themselves vulnerable to disruption from the innovation economy pervasive across a multitude of industries.
Valen uses proprietary research and studies to expose the internal conflict within insurance organizations and provide insights into how carriers can remain competitive and adjust to changing market conditions. The report outlines:
- Top Three Indicators Showing that Insurers Struggle with Innovation
- Customers don’t trust the insurance industry
- Analytic building blocks are lagging
- 77% of actuaries and underwriters are at odds over pricing
- Impact of the Changing Commercial Lines Market
- Competitive pricing
- Market consolidation as a result of M&A and holistic use of analytics
- M&A continues to grow – 61% year-over-year increase in U.S.
- Looking Forward with Predictive Analytics
- Break free from market cycles
- Preventing adverse selection
- Leading indicators that predict future portfolio performance.
“In order to stay competitive, carriers need to take a more segmented approach to customer acquisition and target specific business that aligns within their goals,” said Dax Craig, CEO and president of Valen Analytics. “Advanced analytic strategies allow insurers to stop looking through the rear-view mirror and start planning ahead to make more informed risk decisions. From our research, it’s clear that this will not happen effectively until the whole organization is aligned with a long-term strategy.”
For the full 2016 Commercial Lines Outlook Report, along with complimentary resources and strategies, please visit the Valen Resource Center – www.valen.com.
About Valen Analytics
Valen Analytics is an advanced data and analytics provider 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 Tomorrow’s Talent Challenge. Our customers span many lines of business including Homeowners, Personal Auto, Workers’ Compensation, Commercial Auto, Commercial Package, Commercial Property, and BOP. Learn more about Valen at www.valen.com.