Underwriting is a complicated endeavor, one that requires a keen sensitivity to a variety of factors. Those myriad inputs are a big part of why using Big Data could very well help to transform the industry, which is good news for both insurance companies and businesses that hire them.
One of the advantages of using a more analytical framework is in deciding how to adjudicate claims. Instead of each one going to a random adjuster, or one based on the subject matter, ones that are more tricky can immediately be assigned to a more experienced employee, or the amount of managerial review can be automatically increased. In this way, resources are best allocated to the cases that need them.
An article in Claims Journal details the other various ways these sorts of strategies could help.
"It's imperative that any predictive analytics be designed to reduce the adjuster's workload, use data feeds to eliminate manual entry, provide simple and actionable outcomes, and use internal and external data that combines with active and experiential claims data to provide clients a stronger model based on industry experience," writes author Robert Lewis.
Overall, this increased awareness of the utility of Big Data principles will make Arizona liability insurance even more valuable. Not only will contractors have the security of knowing that their employees and sites are both taken care of, they will also know that, in the event of a claim, the best possible decision will be made. In the end, this should make the entire process more streamlined and cost-effective.