Best’s Review recently asked readers: What are the biggest risks insurers face with the use of new data and predictive analytics?
- May 2019
I think within the insurance industry, the mental work has been steeply increasing. I see two risks that insurers have to face with the rise in new data types and predictive analytics.
First and foremost, it will be training lots of people on advanced uses of computers. Secondly, explain/prove to regulators in plain English that the decision of accepting or rejecting a risk is not from a human bias but from an objective reasoning inside the computer. I think the legal battles will rise with more system-driven decisions and the ultimate onus will still be upon the insurer.
Pranav Sirvaiya, CPCU
Insurance Domain Lead, ValueMomentum Inc.