A data-and-analytics-driven organization delivers better business results all around. Executives get a comprehensive system that uncovers measurable results, and business users get easy-to-consume information that helps them perform their jobs more effectively. Essentially, predictive analytics transforms the business and becomes fundamental to every aspect of it.
Effectively using predictive analytics across the entire business can be complicated. There’s a lot to consider, such as who will use it, how to make the data usable, and how insurers can oversee the operation and impact of the models on an ongoing basis. The process begins with building great models, but it certainly doesn’t stop there. In this article, Wade Bontrager, Vice President, Business Owner, Predictive Analytics at Guidewire Software, shares a four-step process to making a successful go at predictive analytics.
Regulation, product complexity, and insurers’ large balance sheets have kept digital attackers from insurers’ gates. That is changing, but in ways incumbents should embrace. They can flourish in the digital age—if they move swiftly and decisively.
To flourish in the digital age, technology is key. For incumbents, a core transformation may be the first required step on the journey to the digital age. As this compendium introduction from McKinsey & Company states, once there, data and analytics can improve core operations and enable new business model launches needed to compete in the digital world. Outside of the technology, you have to be able to make a high volume of intricate decisions, often interrelated and under uncertain conditions. That's not just a matter of one visionary, such as the CEO; it's instantiating and empowering that level of confidence at the appropriate levels in the organization so that people can confidently make decisions that move a project forward.
During the last decade insurers answered the question of “buy versus build” with regard to core systems, leaving the task of coding to the experts—software companies. Guidewire Software’s success exemplifies this trend as much as any other supplier, and its recent acquisitions manifest other important trends rapidly shaping the industry’s future, including cloud sourcing and advanced analytics.
It’s a very exciting time. It’s absolutely a time of change, from new industry entrants to advances in digital engagement and machine learning. Guidewire has voluntarily embraced that we have to take on more complexity, more product threads than in the past, not just one domain, but digital, advanced analytics, driving hard for a new mode of delivery—cloud—and adding further complexity. In this Q&A with Insurance Innovation Reporter, Guidewire CEO Marcus Ryu shares how the company is helping insurers adapt and succeed in this ever-changing market.