WIN Magazine - Winter 2013 - (Page 20)
USED BY SAVVY INSURANCE
BY FRED E. KARLINSKY, ESQ. AND
RICH J. FIDEI, ESQ.
2 0 | v i e w t h i s i s s u e a t | www.aamgawin.org
OULD A HEALTH insurer
like to know if its policyholder was participating in
a mixed martial arts competition? Would a property
insurer like to know its
homeowner just installed a trampoline in the backyard? How about litigation intelligence on a claim
showing the plaintiff was actually in Arkansas
the day of an alleged doctor's visit in New York?
In all instances, the answer is a resounding
YES! On a daily basis, savvy insurers use available
information from internal and external sources to
focus marketing efforts, messaging and solicitations. They do this through complicated algorithms
and modeling that identify predicted behavior
based on past actions-a process otherwise known
as predictive analytics.
A good example of insurers' use of predictive
modeling to sell and price their products is the
application of insurance credit scoring to personal
lines coverages. Another, telematics, which is individual analysis of an insured's driving habits, is
increasingly used by insurers to aid in automobile
Douglas Greer, Senior Director with Alvarez &
Marsal Insurance Advisory Services, LLC observed
that the combination of "big data" and predictive
analytics can be powerful. Telematics, which produces large quantities of behavioral data such as
driving speed, miles driven or acceleration, is one
of the best examples, he explained.
As insurance carriers continue to harness the
huge volume of available information on individuals and develop models to analyze that information
and predict behavior, the practice of predictive
analytics will continue to evolve, Greer added.
But why is predictive analytics so appropriate
for insurance? Its high-level evaluation-based
on increasingly complex algorithms-is made
possible due to the industry's consistent, reliable
and highly detailed data that can be easily stored,
Table of Contents for the Digital Edition of WIN Magazine - Winter 2013
Disappearing…and Reappearing Risk: What Lies Ahead
An Innovative Solution for Reducing the Debt of College RMI Students
Does Politics Influence Regulatory Forebearance?
Predictive Analytics: The “Black Box” Used by Savvy Insurance Professionals
Just the Facts—On FATCA: Frequently Asked Questions on the Foreign Assets Tax Compliance Act
Your Reputation Matters, Online and Off
New Wholesale Insurance Product Focus: Protection from Hacked Bank Accounts: Protecting Small Business Policyholders
In the WIN-ner’s Circle
Index to Advertisers/ Advertisers.com
WIN Magazine - Winter 2013
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