Search
 

Using Analytics for Pricing Risks and Managing Decisions

In today's disruptive insurance marketplace, rapid innovations in analytic technologies continue to revolutionize the concept of underwriting intelligence and efficiency.

By Kevin B. Thompson, Marty Ellingsworth | Updated on July 31, 2009

In industries the world over, accurate pricing is the key to avoiding financial catastrophe. The property and casualty insurance arena is no exception. During the past decade and a half, the most successful P&C businesses have gotten stronger by employing ever- more sophisticated underwriting strategies across business lines. And in today’s disruptive insurance marketplace, rapid innovations in analytic technologies continue to revolutionize the concept of underwriting intelligence and efficiency. As new data sources and categories of risks emerge, P&C insurers face the ongoing challenge of effectively implementing analytic tools to gain and maintain a competitive edge.

Smart underwriting is necessarily receiving a bigger share of funding for analytics in many insurance enterprises because it is the core of risk decision-making. Underwriting analytics is among the most important of all analytics for an enterprise. If price is wrong, nothing will save a business from creditors in the short run or from its competitors in the long run. This is true not only for P&C risk-based pricing but for every risk management decision. Executives cannot ignore competing on analytics anywhere in their enterprise — most especially in pricing risks and managing decisions about risk portfolios.

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.