http://www.onwindows.com/Articles/PandC-insurance-technology-trends/4753/Default.aspx
Gartner, a technology research firm, identified ten technologies that Property & Casualty insurers can use to improve processes. Some of the more prevalent technologies listed by the study that I actually see daily in my career include modern policy and claims management systems, web services which I have discussed in previous entries, predictive modeling tools, social networking technology, and mobile device technology.
Again since I have already discussed some of the tools, I would like to touch on predictive modeling which has not yet been discussed. Predictive modeling in its basic definition is the process of creating a model to try to best predict the probability of an outcome. This is relevant to technology because without technology, these models would most likely not exist and as technology continues to evolve, these models are becoming more accurate. The process of predictive modeling was first enabled by the creation of the spreadsheet back in the 70's by a Harvard Business School student. Of course, before this invention, analysts tried different scenarios manually which left room for large margins of error.
Fast forwarding almost forty years later, predictive modeling and advances in technology are providing extreme benefit to the insurance industry and more specifically the Property & Casualty industry. Again with technology allowing for advanced tools, modelers are able to use mass amounts of data in order to create real scenarios, identifying the probability of occurrence. As a result, analysts are able to make sure that we properly price our products to compensate for these occurrences. This results in reductions in loss ratios and expenses, thus making companies more profitable. A large part of success achieved by the insurance industry depends on how well they can use predictive modeling, and technological advances should only allow us to get better at it.
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