Sign up and be the first to know

About Hugh Terry & The Digital Insurer

Hugh Terry & The Digital Insurer Video

Contact Us

1 Scotts Road
#24-10 Shaw Centre
Singapore 228208

Write an article

Get in touch with the editor Martin Kornacki

email your ideas at [email protected]

Pre Registration Popup

itcasia2020 Registration Popup

Share Popup

Prime Member: Find out more

Access a unique programme!
  • 56 pre recorded lesson of online content from industry experts over 7 courses
  • The best in digital insurance for practitioners and by practtioners
  • Online MCQ after each lesson
  • Join the discussion forum and make new friends
  • Certificate upon completion to show your expertise and comitment
  • 3 months to complete
  • Normal price US$1,400 Your Prime member price is US$999
  • Access to future versions included in your Prime membership!
Become a member

Prime Member: Contact Us

REach out to us. Please fill up the form below
  • Let us know how we can help. You can expect a response within 24 hours

How to Expand Use of Predictive Analytics in Claims – SAS

Article Synopsis :

The use of predictive analytics within the claims department is often overlooked by insurers, which is a paradox given the impact it could have on the bottom line.

 The Digital Insurer reviews SAS’s Report on Building Believers: How to Expand the Use of Predictive Analytics in Claims

The use of predictive analytics in claims should be a priority for insurers

In the white paper “Building Believers: How to Expand the Use of Predictive Analytics in Claims”, the SAS team provide their research findings while outlining the market changes that have boosted the priority of predictive analytics in claims. The paper focuses on why the use of predictive analytics in claims departments lags that in pricing, underwriting and marketing departments. It also outlines the change management tactics that are required to increase the priority of predictive analytics for claims, and describes emerging trends that will affect future adoption. The paper lists the top five reasons for expanding predictive analytics use in claims:

  • Management of claims severity
  • Reduced claims processing and indemnity costs, and improved settlement consistency
  • Minimized fraud costs
  • Better adjustment decisions
  • Improved straight-through claims processing

The paper also reviews the six key inhibitors to analytics adoption in claims and highlights the recommended ways to overcome them:

Inhibitor 1: Uncertainty About Predictive Analytic Results

Inhibitor 2: Threat of Litigation Influences Decisions

Inhibitor 3: Competing IT and Claims Processing Projects

Inhibitor 4: Failure to Pursue Both Indemnity and LAE Impacts

Inhibitor 5: Relying on Adjuster Intuition – Not Data – to Make Decisions

Inhibitor 6: Limited Change Management Focus


Link to Full Article:: click here

Digital Insurer's Comments

Leveraging claims data to predict outcomes can help insurers make data-driven decisions, which in turn, can have a significant impact on claims performance. We believe that the use  of predictive analytics in decision making is increasingly becoming an industry best practice and is expected to feature strongly in Asian insurers’ business models over the next few years.  The white paper rightly points out that “organizations that are looking to better address the needs, issues and concerns of their claims department and increase the use of data-driven decisions must focus on removing the inhibitors to expanded use of predictive analytics”.  This will be the challenge that lies ahead for Asian insurers – how to overcome these inhibitors so that the true value of using predictive analytics in the claims department is really achieved.  To do this, insurers must balance all elements of the change paradigm – people, process, technology and organisation.

Link to Source:: click here



Livefest 2019 Register Popup Event

Livefest 2019 Already Registered Popup Event

Livefest 2019 Join Live Logged-in Not Registered

Livefest 2019 Join Live Not Logged-in