By this time, most leaders in the insurance industry have heard of using predictive analytics to study previous patterns that can help businesses understand what could happen in the future. However, the amount of noise being made about predictive analytics can be deafening. Ultimately, this can lead a company to jump into a flurry of activity that may or not be useful, or inactivity due to confusion about where to begin.
Executive Summary
Actuaries Claudine Modlin and Roosevelt Mosley identify six key themes that executives should focus on in 2020 to help them achieve the benefits of predictive analytics. Above all, they note that analytics is mostly a leadership issue, needing champions that have overarching business strategies in mind—minimizing the prospect of multiple uncoordinated efforts and unshared insights across the enterprise.Predictive analytics is an effective tool that can lead to significant benefits when applied correctly, and we have identified six key themes that executives should focus on in 2020 to help ensure these benefits are achieved.
Analytics is mostly a leadership issue.We often think of analytics as the purview of statisticians, actuaries or data scientists because that’s often who performs the work. We assert that it’s a leadership issue because executives define what questions to answer, what problems to solve and what opportunities to pursue. These questions need to relate to the company’s overall business strategy—thus beginning with the end in mind.
