Manage risk and improve quality of business with accurate claims prediction
Given the current state of the insurance
landscape, carriers competing for customers, dealing with rising claim rates and high loss ratios, the need has never been greater for insurers to establish and maintain a complete view of their current and prospective policyholders.
A key part of this complete view is the specific claims risk that each customer poses to the company. Evaluating
claims propensity gives insurance providers an objective way to adjust premium rates based on relevant, customer-specific information. Accurately predicting claims propensity throughout
an organization can dramatically improve loss ratios and enables
providers to charge lower premiums to low-risk customers.
To improve loss ratios through more effective pricing and marketing, insurance providers need a solution that
gathers relevant claims data from every corner of the enterprise as well as third-party data sources to provide both claims propensity predictions and claim size predictions.
Predict who will claim—and how much Enter SAS® Claims Prediction for Insurance. This powerful solution, built from decades of experience providing solutions for insurance firms, uses SAS’ award-winning data warehousing and analytical capabilities to help insurance companies improve their loss ratios and overall quality of business by predicting existing and potential customers’ propensity to make a claim, the size of the claim and the key factors that identify higher-risk insurance customers.
The solution also helps you understand the profitability potential of a customer and determine how to allocate funds for claim reserves in a given year.
SAS Claims Prediction for Insurance delivers a “propensity-to-claim score” and potential claim size that you can use for policy underwriting, rating and for determining who to target for cross-sell and up-sell opportunities.
Information used to calculate this score
includes customer demographics and lifestyle data; previous claims history, including number of claims and cost of previous claims; and details about the insurable item, such as a motor vehicle.
While underwriting rules and rating structures account for some of these risk characteristics, SAS Claims
Prediction for Insurance enables an insurer to account for numerous other factors—and the solution bases those considerations on a statistically derived model, not just tradition and conventional
wisdom.
As an example, consider two customers with the same kind of automobile, in the same demographic group, living in
the same area. These customers might have very different claims propensity, as determined by a variety of risk characteristics. Underwriting departments can use this claims propensity
information to assign different motor vehicle insurance rating tiers to these customers. From a marketing stand-claim, the size of the claim and the key factors that identify higher-risk insurance
customers.
The solution also helps you understand
the profitability potential of a customer and determine how to allocate funds for claim reserves in a given year.
SAS Claims Prediction for Insurance delivers a “propensity-to-claim score” and potential claim size that you can use for policy underwriting, rating and for determining who to target for cross-sell and up-sell opportunities. Information used to calculate this score includes customer demographics and lifestyle data; previous claims history, including number of claims and cost of
previous claims; and details about the insurable item, such as a motor vehicle.
While underwriting rules and rating structures account for some of these risk characteristics, SAS Claims
Prediction for Insurance enables an insurer to account for numerous other factors—and the solution bases those considerations on a statistically derived model, not just tradition and conventional
wisdom.
As an example, consider two customers with the same kind of automobile, in the same demographic group, living in
the same area. These customers might have very different claims propensity, as determined by a variety of risk characteristics. Underwriting departments can use this claims propensity
information to assign different motor vehicle insurance rating tiers to these customers. From a marketing stand-point, this information can also be used to better identify potential customers for cross-sell and up-sell activities. A customer with a motor
vehicle insurance policy and a low propensity-to-claim score might be a prime candidate for a discounted life insurance policy, for example.
SAS Claims Prediction for Insurance also features claims summary analysis and claims segmentation and reasons,
which help drill down into a propensity score to observe what types of claims have been filed by that customer and what reasons have been given for those claims. This information gives additional focus to pricing and market underwriting decisions.
Comprehensive insurance intelligence SAS Claims Prediction for Insurance is available as a component of SAS Insurance Intelligence Solutions, a suite of software and services that combines award-winning analytic and data warehousing technology with decades of industry experience. Through proven, prebuilt processes, techniques and models, SAS Insurance Intelligence Solutions speed up both implementation and results—yielding significant returns within months, not years.
SAS Insurance Intelligence Solutions provide powerful, integrated intelligence for numerous aspects of your business, including marketing automation, performance management, customer retention, cross-sell and up-sell, customer segmentation and claims prediction.
About SAS
SAS is the market leader in providing a new generation of business intelligence software and services that create true enterprise intelligence. SAS has more
than 800 insurance customers worldwide. In all, SAS solutions are used at more than 40,000 sites—including
90 percent of the Fortune 500—to develop more profitable relationships with customers and suppliers; to enable
better, more accurate and informed decisions; and to drive organizations forward. SAS is the only vendor that completely integrates leading data warehousing, analytics and traditional BI applications to create intelligence from massive amounts of data. For more than 25 years, SAS has been giving customers around the world The Power to Know®. Visit us at http://www.sas.com.
