Data, analytics, AI: they can often feel like buzzwords that are just thrown around for the sake of it. For brokers and MGAs, who often lack the scale of an insurer, it can be difficult to decode what it all means – and why you should be concerned with any of it. But for smaller businesses with less resources and tech prowess, deciding whether data and analytics are worth the time and investment can be difficult. However, there can be some pretty big benefits - Insurance Business writes in an article following the recent seminar held with the MGAA at which our head of analytics Andrew Dunkley and Partner, Alex Traill presented the upsides to an audience of brokers and other contacts.
“Harnessing data and analytics allows you to take better decisions at the best time, based on a more accurate understanding of the risks and likely consequences,” Andrew Dunkley, head of analytics at insurance law firm BLM, told Insurance Business.
When it comes to using data and analytics, those who don’t collect enormous amounts of data in line with that of a major insurer – for example, a smaller regional broker – needn’t be put off.
“Sometimes this can take the form of big data tools like machine learning and artificial intelligence, but you don’t have to be constrained by the availability of data or resources to buy complex and expensive systems,” Dunkley said.
An MGA, for example, could benefit from using an analytics tool when it comes to claims, to ensure that its pricing model accurately reflects claims history and reserves, Dunkley said.
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