Insurance-specific predictive analytics solutions have seen strong market momentum and notable industry leader activity in the pricing & risk assessment space — making them 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.
Insurance-specific predictive analytics earned a recommendation to prioritize based on the market’s high 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.
These solutions are built specifically for insurance underwriting functions like pricing and producing risk scores.
Predictive analytics technology fundamentally alters and improves the way that insurance underwriting works — shifting assumptions away from backward-looking performance to predicting behavioral outcomes. Life insurers should prioritize investments in predictive analytics in order to price and assess risks in a competitive manner moving forward.
Insurers have the option of using pre-built life insurance predictive analytics models, minimizing their own modeling efforts to rely on external data and predictive risk assessment models. Systems like these are best suited for specific insurance use cases — e.g., pricing, providing underwriting recommendations, and other risk insights.
FACTS & FIGURES: Insurance-specific predictive analytics
- Market size: Across industries, the global predictive analytics market is expected to be worth $35B by 2027.
- Funding: Insurance-specific predictive analytics companies evaluated in this report have raised $148M in disclosed equity funding since 2017 (as of 4/19/22).
- Top-funded companies: Top-funded companies in the space include dacadoo ($75M in disclosed equity funding), Gradient AI ($31M), DreamQuark ($19M).
Clients can dive into insurance-specific predictive analytics and more in our complete MVP Technology Framework: Pricing & Risk Assessment for Life Insurance Underwriters report.
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