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Why Actuaries and Data Miners Should Huddle Up

One of the advantages of using analytics for P&C insurance is the ability to more effectively create a rating structure or to better price premiums for a given policy. But challenges remain on how to build the best tools in this area, particularly in the development of multivariate analysis (MVA)...

By Richard Boire | Updated on May 18, 2011

One of the advantages of using analytics for P&C insurance is the ability to more effectively create a rating structure or to better price premiums for a given policy. But challenges remain on how to build the best tools in this area, particularly in the development of multivariate analysis (MVA) tools.

In other disciplines, such as marketing and credit card risk, the use of predictive analytics and associated MVA tools has become common. But implementation challenges exist within the P&C industry, despite the fact that actuaries all have strong mathematical backgrounds. Why the disconnect?

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