Call it the arugula effect. A major US commercial insurance carrier was dissatisfied with its approach to supermarket general liability risk. The conventional lens on customer segments was too crude and masked the presence of good risks within broad segments such as inner-city supermarkets. So the carrier mined geographic data block by block and discovered a sub segment of grocery stores that had a more attractive risk profile.
This paper looks at how property and casualty insurers can make use of analytics to improve performance, by gaining five key competitive advantages.
Topics covered include:
1) Risk selection and pricing.
2) Customer loyalty.
3) Claims management.
4) Management of business cycles.
5) Capital efficiency.