As per a new sigma report from Swiss Re Institute, the use of increasingly advanced analytic capabilities is enabling property and casualty (P&C) re/insurers to “unlock new frontiers in risk assessment and mitigation”.
The study explored how insurance and reinsurance companies can use analytics to support growth through new market opportunities and risk pools, as well as better customer comprehension.
Swiss Re also underlined how advanced analytics can provide insight on risk accumulation and portfolio steering, and how they can improve efficiency by automating manual and repetitive tasks. The report estimated that most re/insurers seem to be targeting around a 2-5% improvement in their loss ratios, the report estimated.
“The ability to gain useful predictive insights from ever-increasing amounts of data is challenging. There needs to be more investment of time and resources on data curation,” said Daniel Ryan, Head of Insurance Risk Research at Swiss Re Institute.
Eric Schuh, Global Head of P&C Solutions at Swiss Re, said, “The time taken to implement P&C Solutions projects depends on the Lines of Business and project objective, but several weeks is the minimum time for rapid deployments.
“Wider business integration and extracting larger scale efficiencies can take longer, P&C Analytics, part of the P&C Solutions suite, can also integrate other solutions into its projects for added client benefits.”
