Less than one-third of insurers use predictive analytics software to help make business decisions about their producers, according to new research.
Trilogy Insurance & Financial Services, Austin, Tex., published this finding in a new study, “Predictive Analytics in the Insurance Industry, which surveys 109 individuals employed at insurance companies. About one-third of the respondents (32%) are employed at life insurers; more than half (54%) work in IT departments.
The survey reveals that just 29% of insurers are using customer and agent/producer predictive analytics solutions. This contrasts with 37% of companies that are using other statistical tools or predictive analytics for non-producer-oriented applications.
The respondents say that data and analytics solutions being used by insurers are more often customer-focused, helping with customer segmentation (37%), improving competitive advantage of insurance carriers (36%) and retaining existing insurance customers (36%).
More than 8 in 10 (82%) of insurers say that being easy to do business with is the most important priority in terms of managing producers, but only 6 in 10 (59%) believe they are fully effective in this regard, the study finds.