Predictive Analytics Calls for Champions

Today, roughly 330 personal auto insurance companies serve the US market. But in the past 15 years, more than 100 others failed or were absorbed by stronger competitors. Nevertheless, smaller insurance companies cannot only survive but prosper, too. For the first time in ages, smaller companies in the property/casualty insurance market have taken back some ground -- in part because of the power and benefits of predictive analytics. Operational success in analytics requires dedicated champions and solid leadership skills. Insurers also have the option to focus less on building in-house systems and concentrate more on execution. If indigenous resources are stretched, vendors and consultants can provide guidance to unlock the potential of analytic resources, data volume and market share.