Insurance is one of the oldest industries that have used statistics and modeling. Actuarial science evolved from the acclaimed work of John Graunt and Edmund Halley in 1693 to determine the age at death on the basis of Breslau statistics. Predictive Analytics uses historic data to identify patterns and trends to predict future unknown outcomes. The competitive landscape and technology trends have forced insurers to apply predictive modeling to various processes for more profitable and efficient operations.
Although predictive analytics can be applied across all value chains, Virtusa has focused on claims analytics as an example as 80% of premium revenue is spent on claims. It has been a debate whether predictive analytics will become automated commodities or will need to be analyzed with human decision making. Nevertheless, it is universally accepted that predictive analytics will impact the way insurers conduct their business. Virtusa’s claims analytics solution offers insurers a platform to plug into their existing data sources and derive business insights using the dashboards and models that slice, dice and simulate the data.