Valen 2019 Outlook Report Demonstrates Advanced Uses of Data and Analytics Reshaping Insurance
DENVER--(BUSINESS WIRE)--Feb 6, 2019--Valen Analytics ®, an Insurity company that provides proprietary data, analytics and predictive modeling for P/C insurers, today published its sixth annual 2019 Outlook Report. Employing industry and proprietary research, the report identifies evolving technology-based economies, informed by data, as the primary determinants in shifting dynamics within the insurance industry.
Key findings of the report include:
Small commercial market growth is fueling demand for data analytics solutions:Data analytics tools offer insurers an edge in this market, enabling automation and scalability to improve customer experience and pricing.
The competitive advantage provided by data consortiums enables highly predictive, actionable insights. Valen’s proprietary research finds:Synthetic variables appended with consortium data have up to 13 times more predictive power than variables built with policy-only data. While large aggregated datasets are still relevant in identifying useful trends, behavioral and transactional data will drive real-time decisions for quoting, underwriting, and claims handling.
Valen’s long-standing Underwriting Analytics study supports the market momentum centered around growing use of data-driven decision making:There’s a growing trend in insurers adopting data analytics, indicating a future where insurers will proactively define how changes in technology and economy affect their business. Incorporating predictive analytics into underwriting strategy is higher amongst insurers (77%) compared to the last three years (60%).
On the talent and IT management front, the report finds that 73% of insurers surveyed indicate moderate to extreme difficulty in finding data and analytics talent and that most insurers report an IT backlog of two to three years.
“The evolution of the innovation economy has transformed the industry by redefining risks, premiums and insurable interests,” said Kirstin Marr, President of Valen Analytics. “Data and analytics have reached a strategic level of importance for industry players looking to get ahead of the curve. Leading insurers are leveraging data analytics as the gateway to all components of innovation, rather than limited to a specific use for individual products or initiatives.”
Findings also support growing investor confidence in Insurtechs and an overall push for innovation in the industry.
The 2019 Outlook Report, including the 2018 Valen Underwriting Analytics survey results, can be found at www.valen.com.
About Valen Analytics
Valen Analytics, an Insurity company, provides proprietary data, analytics and predictive modeling for property and casualty insurers. We work with insurers who are actively looking to utilize modern approaches to pricing, risk selection, claims triage, and premium fraud. Our customers are focused on increasing competitive pressures, fighting adverse selection with innovative solutions, and raising awareness for the impending “experience gap” with initiatives such as Insurance Careers Movement. Our customers span many lines of business including Homeowners, Personal Auto, Workers’ Compensation, Commercial Auto, Commercial Package, Commercial Property, and BOP. Valen integrates with several Insurity products and solutions, including DataHouse and Policy Decisions platforms, enabling improved data management and data-driven decision making. Learn more about Valen at www.valen.com.
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CONTACT: Ruchi Pandey
Fusion PR on behalf of Valen Analytics
KEYWORD: UNITED STATES NORTH AMERICA COLORADO
INDUSTRY KEYWORD: TECHNOLOGY DATA MANAGEMENT PROFESSIONAL SERVICES INSURANCE
SOURCE: Valen Analytics
Copyright Business Wire 2019.
PUB: 02/06/2019 09:00 AM/DISC: 02/06/2019 09:01 AM