By definition, predictive modelling analyses underwriting and claims history.
These models tell underwriters which risks are riskier, (i.e. should be charged more).
Technology is not the issue. Insurance is all about minimizing risk. If you don\’t know where not to look, (i.e. which risks to avoid or price higher), then you will not survive.
Agents\’ anecdotal information is not sufficient anymore.
To witness success take a look at Progressive as the leader in this new approach but also see that State Farm, Safeco and others recognize the soundness of this approach, at the expense of paring down staff, of course. But it works!
I for one just hope I can escape the axe before if falls at my company. Recently embarked on a multi-variable auto program.
Purpose is to broaden our appetite and eventually eliminate staff. Just a few U/W types would remain.
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By definition, predictive modelling analyses underwriting and claims history.
These models tell underwriters which risks are riskier, (i.e. should be charged more).
Technology is not the issue. Insurance is all about minimizing risk. If you don\’t know where not to look, (i.e. which risks to avoid or price higher), then you will not survive.
Agents\’ anecdotal information is not sufficient anymore.
To witness success take a look at Progressive as the leader in this new approach but also see that State Farm, Safeco and others recognize the soundness of this approach, at the expense of paring down staff, of course. But it works!
I for one just hope I can escape the axe before if falls at my company. Recently embarked on a multi-variable auto program.
Purpose is to broaden our appetite and eventually eliminate staff. Just a few U/W types would remain.