November 25, 2016
Harnessing the transformative power of big data
Milliman, the international, independent actuarial and consulting firm, this week published the Milliman Impact report on data & analytics opportunities for the insurance industry. Whilst the industry was one of the first for making risk decisions using predictive analytics and complex models, the Big Data revolution has barely touched insurance. Milliman's Neil Cantle offers some insight into how big data can be used effectively in the industry.
David Excell, co-founder and CTO of Featurespace, commented in the report that, “Organisations need to think about how they can use information as technology makes it available, whether it is to make the business more efficient or products more tailored. They need to ask themselves, what are the questions that I cannot currently get an answer to?”.
Featurespace uses adaptive behavioural analytics and machine learning to prevent fraud. By understanding the behaviour of each individual applicant, the ARIC Fraud Hub can spot application fraud in real time, allowing insurers to process more genuine applications and flag unusual application activity. As early on as point-of-quote, the ARIC Platform can be used to spot potential customers deliberately falsifying information to generate a lower premium, which can push up premiums for genuine customers, as well as have a negative impact on insurer revenue.
Find out more about how the ARIC Platform can be used in the insurance industry.