P&C insurers’ aspirations of implementing advanced analytics into key areas of their business remain elusive - Seite 2

Survey findings showed all lines of business behind schedule with their use of advanced analytics for claim management, with one notable exception: 53% of commercial lines insurers are utilizing unstructured internal claim information as a nontraditional data source, compared to 41% two years ago. The usage in claims varies by line of business, e.g., more than half (54%) of workers compensation writers said they used advanced analytics in claims, compared to 10% in commercial property.

Insurers use of telematics data demonstrated relatively slow volume growth for both personal auto (28% to 30%) and homeowners (2% to 9%) over the last two years. In addition, a relatively high percentage of carriers said they have no plans to use telematics across these and other lines of business in the next five years.

Progress around the use of artificial intelligence and machine learning fell short of carriers’ expectations, though the percentage of respondents who use both to build risk models for decision making (26%) and reduce manual input (22%) doubled in the last two years. Over two-thirds (69%) characterized their current state of InsurTech integration as early stage, and more than one-fifth (22%) said they’re not doing anything in this area.

“There are levers insurers can pull to sharpen their focus around implementing advanced analytics, such as reviewing staff allocation to get the most from employees who can devote sufficient time and develop their skills in the process,” said Sukow. “Overall, insurers should plot a course for how to apply data and analytics but remain flexible to take advantage of market and technical developments as they arise. Think of the whole process of enhancing analytics capability as a journey, not a destination.”

About the survey

Willis Towers Watson’s 2019 Advanced Analytics Survey asked P&C insurance executives in the U.S. and Canada for their insights on the future of advanced analytics relative to where we are today. Ninety-nine P&C insurers participated in two web-based surveys conducted in the second quarter of 2019, from April to July 2019. There were 66 multiline carriers, 23 commercial and 10 personal line carriers. Respondents included eight of the top 20 U.S. P&C insurers and eight of the top 20 Canadian P&C insurers.

About Willis Towers Watson

Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and markets. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas — the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.

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