Predictive analytics solutions have seen dominant market momentum and notable industry leader activity in the pricing & risk assessment space — making it a technology worth prioritizing.
Clients can download the full Pricing & Risk Assessment for Life Insurance Underwriters report at the top left sidebar.
Life insurance leaders are shifting more of their R&D budgets toward improving their risk assessment and rating models, focusing on novel technologies that can improve the efficiency and efficacy of this key underwriting process.
Using CB Insights data, we examined tech markets across pricing & risk assessment for life insurance underwriters and ranked them across two metrics — market momentum and industry leader activity — to help companies decide whether to monitor, vet, or prioritize these technologies.
Predictive analytics earned a recommendation to prioritize based on the market’s strong market momentum and industry leader activity.
Predictive analytics uses statistical modeling and artificial intelligence methods to complement the actuarial approach, offering a more forward-looking view to underwriting.
This technology analyzes internal and external data sources to identify patterns and connections that are not discoverable by human cognition alone. These insights are used to establish the likelihood of different outcomes.
Industry-agnostic predictive analytics solutions give insurers more customization options for all of their analytics needs for underwriting processes.
Life insurers should prioritize investments in predictive analytics in order to price and assess risks in a competitive manner moving forward.
While industry-agnostic systems will not typically have pre-built insurance models, insurers can still use these solutions to build very robust and complex underwriting models. In fact, they may find greater flexibility and control in their models with using these solutions, but at the cost of additional time to build these models from scratch.
FACTS & FIGURES: Predictive Analytics
- Market size: Across industries, the global predictive analytics market is expected to be worth $35B by 2027.
- Funding: Industry-agnostic predictive analytics companies evaluated in this report have raised $3B in disclosed equity funding since 2017 (as of 5/5/22).
- Top-funded companies: Top-funded companies in the space include DataRobot ($1.1B in disclosed equity funding), Fractal Analytics ($688M), and Dataiku ($647M).
Clients can dive into predictive analytics and more in our complete MVP Technology Framework: Pricing & Risk Assessment for Life Insurance Underwriters report.
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