4. Predict
The basic concept of insurance is analyzing historical data to forecast or
predict future behavior. Captive insurers have used statistics and
advanced analytics for premium pricing for many years, but now it is
becoming essential that they extend their analytical capability to include
predictive analytics models throughout the policy lifecycle. For example,
optimizing the reserving practices for optimal capital retention.
Building a predictive analytics model is only part of solving the business
issue. The real benefit comes when AI-based predictive models are fully
embedded into risk management solution to make augment risk
professional with real-time business information.
THE CAPTIVE INSURANCE RENAISSANCE | 8
