A Large Quantity of Data Doesn’t Necessarily Mean Quality
We’ve talked a lot about big data and how it’s being used to strengthen insurance underwriting practices today. However, the challenge with data is that it can be challenging to know which data sets to use to drive the most accurate underwriting decisions. While data serves as the basis that many underwriters use to calculate risk and pricing, simply having access to a large quantity of data doesn’t necessarily mean that all of the information is high caliber.
For insurance carriers to be able to strengthen underwriting practices with predictive analytics, they need to have an understanding of which data sets will provide underwriters with the most accurate information needed to make decisions. In addition, they must be able to comprehend what the data means for today, tomorrow, and an unforeseen event five years down the road. Historically, the insurance industry has been reactive, and embracing predictive analytics will allow the industry to be proactive in addressing risk.
How Insurance Carriers Are Using Predictive Analytics
Thanks to the Internet of Things, the property and casualty insurance industry is able to benefit from technology that collects hyper-active, real-time data via smart sensors placed in insureds’ properties. These sensors (alarm system, leak/moisture detectors, thermostats, etc) provide insurance carriers with a live stream of data points for more accurate underwriting. These smart sensors can even catch anomalies and prevent claims from happening. By leaning on predictive analytics, insurance carriers can feel more confident in their decisions and better mitigate risks down the road.
Predictive analytics is still fairly new to the insurance industry, and many insureds aren’t aware of how this technology is being used to underwrite risk and prevent the need for a claim to be filed. An insurance inspection provides carriers with the ideal opportunity to discuss how this technology can be used in the property to mitigate risk.
How Insurance Risk Services Can Help
Our team at Insurance Risk Services can partner with you to provide a thorough, in-person insurance inspection and discuss the benefits of insureds installing smart sensors at their properties. An insurance inspection also provides insurance carriers with an opportunity to identify new ways to serve insureds.
Contact us at Insurance Risk Services to learn more about how you can use an insurance inspection to underwrite risk and strengthen relationships with insureds.