Data Gold Boosts Property-Casualty Predictive Modeling Potential
Thanks to the growth of available information, actuaries are on a quest for data gold to boost property-casualty predictive modeling potential.
My Actuarial Review article, Predictive Modeling: The Quest for Data Gold, explains how data is presenting greater potential and challenges for actuaries. To find data gold, they must shift through available data — whether it is buried in text or from the growing number of external sources catering to the insurance industry.
Actuaries have a seemingly insatiable appetite for data. While more data is available than ever in some areas, information voids remain.
This article is part 1 of a series I am writing on the latest in predictive modeling for Actuarial Review.
To explain how more available data is enhancing property-casualty predictive modeling, the article discusses:
- innovative ways insurers are using internal data;
- data sources for developing potential proxies;
- why all insurers will soon be able to collect telematics data;
- differences in data needs for personal compared to commercial lines;
- tips on selecting data vendors;
- growing data potential, including digital breadcrumbs and the Internet of Things.
Part II of the series will discuss new modeling approaches to improve property-casualty predictive modeling potential. Part III will explore barriers to predictive modeling innovation, the upcoming disruption in the insurance company business model and more!
Do you agree that greater data availability is boosting property-casualty predictive modeling? Please share your comments below. Thanks!