Advanced Analytics Still A Priority For Re/insurers

A new study by broker Willis Towers Watson (WTW) has found that expanding and improving the use of advanced analytics in several aspects of operations remains high on North American property & casualty (P&C) insurers’ strategies.

As part of a new survey, re/insurers across the board — but most noticeably in pricing, underwriting and claims —reported that their use of and plans for advanced analytics have been reignited over the past two years.

‘Outside a small set of respondents who express doubts about the business case for advanced analytics, either due to concerns about cost or the ability to explain outputs to either management or customers, the North American P&C market still looks set on a course for increased use of advanced analytics,’ said Lisa Sukow, director, North America P&C practice, Insurance Consulting and Technology at WTW.

‘There is continuing optimism from the companies surveyed about the impact that advanced analytics has had on both top- and bottom-line performance,’ she added.

Data management, handling and warehousing were identified as key factors mentioned in slowing or delaying progress on advanced analytics, and the impact of COVID-19 has also limited available time and resources, WTW’s survey shows.