OLDWICK, N.J.--(BUSINESS WIRE)--In this A.M.BestTV episode, Michael Lagomarsino, senior director, and David Blades, senior industry research analyst, A.M. Best, said predictive analytics made its early impact in the automobile insurance sector and has since expanded into other areas, including a growing range of commercial lines. Click on http://www.ambest.com/v.asp?v=predictiveanalytics418 to view the entire program.
Lagomarsino highlighted the effect that predictive analytics has had on commercial lines underwriting.
“The greater utilization of data analytics and the quicker visibility in changes in market dynamics have had a positive impact on the overall magnitude of the commercial lines underwriting cycle,” said Lagomarsino. “Although A.M. Best anticipates that the continuation of analytics and data will have a positive influence on the duration and magnitude of future underwriting cycles, we do not foresee a point in time where the cycle is dead and does not exist. … Companies that fail to keep up with changing technology and the use of data are at risk of being affected adversely.”
Going forward, Blades said he believes predictive analytics will be a key differentiator among commercial lines insurers.
“The ones that are more nimble in using predictive analytics, and harness data and analytics to make quicker decisions to get them to the marketplace quicker, will be the ones that are probably going to be more successful. Harnessing information and making it consumable within an organization will enable those companies to be truly at the top end of the market,” said Blades.
To access a copy of this special report, titled, “Predictive Analytics Aids Performance, Balances Underwriting Cycles for Commercial Lines Insurers,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=272252.
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