Analytics and modeling expertise to help insurance leaders make strategic decisions using the data they collect

Once you have ensured that you are collecting accurate and relevant data, the next step is understanding what it can tell you. Strategic analysis of your data using predictive analytics and modeling to predict future events or behaviors can help identify trends, patterns, and relationships that might not be readily apparent, providing insight to support pricing, underwriting, claims, product and other strategic decisions.

Davies combines analytics expertise with practical insurance industry knowledge allowing us to understand what you are trying to achieve and help you interpret and apply the results of your analysis. Our regulatory and product management expertise also means that we can support the compliance and regulatory considerations associated with technically complex analytics and modeling projects.

Product Management:

• Constructing generalized linear models for insurance carrier rate development and to predict expected loss costs.
• Modeling insurance risks with Experian and Dun & Bradstreet credit data.
• Creating financial analysis and risk profile dashboards.
• Creating environmental pollution liability earned premium models.
• Developing model validation techniques to help mitigate model risk

Claims and Underwriting:

• Creating claims-level simulations for actuarial reserve analyses.
• Developing generalized linear models to predict claim complexity and severity.
• Building pricing, early warning, and risk/safety workforce optimization models related to workers’ compensation.
• Creating Monte Carlo simulations to project losses in various layers.
• Constructing underwriting models to score risks.

Marketing and Sales:

• Conducting clustering analyses to identify improved geographical territories.
• Developing retention and price elasticity models for new and renewal business.
• Developing customer lifetime value estimations.
• Creating customer churn and acquisition models and next-to-buy models for cross-selling.

Our consultants combine analytics and modeling expertise with practical insurance industry knowledge, enabling us to understand both the technical requirements of an assignment and the wider business context in which the analysis will be used.

This experience spans product management, pricing, claims, underwriting, marketing and sales. Just as importantly, our regulatory and product expertise helps clients consider how analytical models will work in practice – from how the results inform business decisions to the regulatory and operational requirements surrounding their use.