Whether you're writing personal or commercial insurance nowadays, you're undoubtedly capturing and storing large amounts of data.
But are you uncovering all the value that's hidden in that data? Are you able to quickly turn it into crucial business insights?
Using predictive analytics, Milliman can identify your most profitable customer segments—and your least. We can also help you make important enhancements to your processes, such as revamping your marketing strategy or revising your underwriting criteria.
For more than 60 years, Milliman has been recognized as an industry leader in helping P&C insurance companies improve their bottom line. Our predictive analytics solutions combine machine-learning technology with innovative data-mining techniques. We can help you improve the underwriting performance of your book of business in weeks—rather than months or years. We'll look at three examples.
Using maps to make data actionable.
A regional P&C insurance company asked us to evaluate its countrywide business owners' insurance program in the hope of finding ways to improve profitability. Using traditional methods, this work would take several months. Yet we reviewed the entirety of the data and developed our findings in just three weeks. We learned which territories, including urban subsections, were most profitable and least profitable—and why. We even plotted these results on detailed street maps.
These insights proved so instrumental that the company is now realigning its business territories accordingly.
Revitalizing an insurer with strategic segmentation.
For another client, a homeowners insurer, a drastic increase in the incidence of non-catastrophe claims threatened to erase its profits entirely.
Utilizing predictive analytics, Milliman was able to uncover new areas of profitability and new competitive segments, as well as those segments to avoid. In the process we helped company management understand the correlation of two specific factors that drive claim frequencies in the state. As a result we were able to implement a new plan that created a competitive advantage for the company—one it still enjoys today.
From data to insight—in one month.
Our approach has proven itself with smaller companies, as well. When a $30 million P&C insurance company approached us, it had a mountain of data, and limited resources. The project was completed within one month. In that time, we discovered which business segments consistently produced loss ratios below 50% year after year, and which segments were consistently above 100%.
With just a few changes to the company's pricing plan, we improved the matching of price to risk. Today, the company is writing better business—and more of it. For these clients and many others, Milliman is turning risk into opportunity and data into an advantage.
Milliman predictive analytics solutions. The right blend of expertise and technology.