“Predictive analytics is about understanding our customers in completely new ways,” says Jay Rajendra, Chief Strategy and Innovation Officer at Arch, “and using that to help make decisions.”
Video Transcript
Predictive analytics is about understanding our customers in completely new ways and using that to help make decisions. So outside of insurance when we think about companies like Google, Amazon, Uber and Netflix, we tend to think of them as technology companies. But they’re really analytics companies. They use really rich data about their customers and they use that to drive their strategy. And that’s why they’re successful.
So we’ve been using predictive analytics on the mortgage side for a number of years. On the P&C side, we formed the strategic analytics team two and a half years ago. And since then, we’ve developed over 25 predictive models which are either being used now or will be in the future.
I think the biggest accomplishment has actually been not any particular one project. But really the reception and the engagement from all the people that we’ve worked with along the way. If I’m being honest, when I first joined, I didn’t know it was going to be this successful, don’t that tell my boss that. But I’ve really been blown away by all the people that have worked together on these projects from the underwriters, the actuaries, the IT people, the claims people, and they’ve really collaborated and worked together. When you get a group of diverse talents like that, and they’re willing to come together and create something completely new to make things better, I think it’s really awesome.