They say knowledge is power, and we couldn’t agree more. That’s why, in the insurance industry in particular, prescriptive analytics is a critical tool that can empower agents, brokers and carriers with the tools they need to make it easier to do business – and enhance their bottom line, improving conversion ratios while lower acquisition costs.
Confianza’s advanced prescriptive analytics technology empowers insurance providers to make intelligent data-driven decisions at every stage of the policy lifecycle, from acquisition through service and renewal…based on their desired outcomes. But how do prescriptive analytics work, and more importantly, how can they benefit you? Find the answers to your most frequently asked questions about prescriptive analytics below.
What is prescriptive analytics?
Prescriptive analytics is a type of analytics that allows our clients to make informed data-driven decisions. Specifically, Prescriptive Analytics makes use of machine learning to examine various data sources to help businesses decide a course of action based on current trends and information, prescriptive analytics illustrates the implications of your decisions. It also provides critical insight into the reasons why the analytic produced its result.
Prescriptive analytics is the final phase of business analytics and although it sounds similar to descriptive or predictive analytics it is very different. The three should not be confused…Descriptive Analytics tells you what happened in the past using relationship based on historical data. Predictive Analytics predicts what is most likely to happen in the future but it still uses “backwards looking” data. The results of Prescriptive analytics is also presented as a “black box”, providing the result but with no indication of how / why the metric was derived. Prescriptive analytics are very meaningful, but as we all know, there is no “one size fits all” and a single metric may (or may not apply) to all who consume it. Prescriptive Analytics takes advantage of the results of descriptive and predictive analytics but leverages both historical information and forward looking trends. In addition, the reasons for the result are disclosed to the consuming party enabling the recipient the ability to take the results into context before you can take action on the outcomes.
What are the benefits of prescriptive analytics?
Prescriptive analytics can give you the knowledge and confidence you need to make sound decisions and choose the next best course of action for your agency and clients that align with your business strategy. It helps to improve targeted risk selection, increase efficiency, identify & prevent fraud, and improve client retention rates.
In summary, our clients experience Improved Conversion ratios, lower acquisition cost and overall profitable growth.
Missed information is missed opportunities, but with Confianza’s prescriptive analytics technology platform, you’ll have the information you need to secure, grow, and serve your client base.
Learn more about our Data and Prescriptive analytics services here.