Thirty-two percent of health insurers and life insurers across the globe plan to develop their predictive analytics capabilities over the next two years, according to a Gen Re survey.
Gen Re, a reinsurance solutions provider, conducted a global survey to determine how health and life insurers are using predictive analytics. Their respondents included representatives from 136 participating companies in 23 countries from regions spanning Australia, Europe, Latin America, the Middle East, South Africa and the United States.
Here are five insights from the survey.
1. Twenty-two percent of global companies currently use predictive analytics. In the United States, 27 percent of respondents said they currently use predictive analytics and 33 percent said they are developing their predictive analytics capabilities.
2. Forty-six percent of global companies said they had no immediate plans to use predictive analytics, compared to 39 percent of those in the United States.
3. The plurality of companies use predictive analytics for sales and marketing support (20 percent), which includes customer acquisition, engagement and retention. Other areas insurers use predictive analytics include:
- Pricing: 12 percent
- Underwriting requirements: 9 percent
- Underwriting decisions: 6 percent
- Claims management: 6 percent
4. Those who have not yet implemented predictive analytics say there are three main barriers: lack of priority/budget (45 percent), lack of experience (28 percent) and lack of access to suitable data (27 percent).
5. The information sources these companies are looking toward include internal sources (such as insurance data), alongside external sources (such as public, governmental and social media data).
Click here to view the survey.