The Guidewire cloud platform is rich in features that have set industry standards in the insurance sector. However, one of the most advantageous tools in the Guidewire arsenal is its predictive analytics software. Predictive insurance analytics is tricky but fairly useable for businesses as it can provide competitive advantages. A Willis Towers Watson survey in 2020 found that over 30% of companies already use predictive analytics for individual and group risk business. It was also noted that more than 80% of insurers that leverage predictive analytics reported a positive business impact, with none reporting any negative impact.
The power of data analytics, especially predictive analytics, provides insurers with competitive capabilities like accurate pricing, claims management, customer retention, process improvements, etc. Combined with the right models and wherever possible, automation, predictive analytics can have a huge impact on the business. On Guidewire cloud, the AI technology in predictive analytics adds to the power. So let’s take a deeper look at Guidewire’s predictive analytics solutions.
Powering Insurers’ Needs Categorically
Guidewire has various applications that can be leveraged to handle different aspects of the insurance lifecycle like InsuranceSuite, Claims Center, Profitability, etc. Predictive analytics for each application differs based on their function and needs, but the distinction of data between the apps can help better predictive models for the processes. This enables multiple models to be built-for-purpose on the Guidewire cloud. Nearly 60% of insurers cited data volume, quality and reliability as significant challenges to predictive analytics (Willis Towers Watson).
Personalization for Modern Services
Personalized services drive today’s world, and predictive analytics on Guidewire can be used with machine learning integrations to provide just that. Many industries have successfully used AI technologies to provide highly personalized products and services to their customers. AI can help deliver personalized products and pricing, and predict events like customer drop-off and mitigate those events without manual intervention. These capabilities can provide your customers with highly personalized experiences not limited to products and services.
SLK Software is an industry-leading consultant and solutions provider with extensive experience implementing Guidewire technologies for several Fortune 500 insurers. We provide smart solutions enabled by custom technologies and in-house AI that can seamlessly integrate with multiple platforms to provide competitive advantages. Our ROI-driven approach has benefited our clients through the various industries with smart infrastructure and automation-led solutions.
Reduce Overall Cost
The insurance lifecycle for a policy consists of multiple steps, many of which are cost-intensive and manual. Add to it the fraudulent claims and similar losses incurred by insurers. According to US insurance fraud statistics, in 2020 alone, 18% of all insurance claims contained an element of fraud, and makes up for 5-10% of claims costs for insurers in the United States and Canada on average. Using predictive analytics solutions on Guidewire, an overall cost reduction can be achieved in underwriting, managing claims, detecting frauds, and optimal resource utilization. Another survey conducted by Willis Towers Watson found that life insurers who use predictive analytics reported a 67% reduction in expenses and a 60% increase in sales.
Guidewire’s predictive analytics solutions can be easily customized to meet the needs of insurers of any size. Guidewire has been an industry-leading platform in the insurance sector for more than 20 years. In the process, Guidewire has added third-party data related to records, inspections, and credit reports to enable better predictive analytics solutions for its users. Guidewire has also acquired Cyence to help improve insurance modelling for 21st-century risks, like cyberattacks, for which sufficient insurance data is unavailable. These additions to the Guidewire platform enable best-in-class predictive analytics for insurers to manage today’s and tomorrow’s risks.