RGA shares basic steps insurers can take to prevent overfitting for more accurate predictive models.
The controversy surrounding the political consulting firm Cambridge Analytica’s use of personal data harvested from social media accounts without the users’ permission is among the first of what likely will be a long series of public debates about how the use of “big data” can shape our lives. And one of the most obvious battlegrounds where we should expect such fights to play out soon is in the insurance industry.
Slides from presentations given at the 48th annual M.U.D. Conference have been posted at their website. Presentations include:
Increasingly, computer templates are making binding underwriting decisions through information that is programmed in with final decisions virtually unappealable. It’s a frustrating situation that is taking the human element out of a very human situation of health and risk assessment.
The search is on for how to disrupt the underwriting process to find or select the best risks. Can data ever be as good as blood? There is an ever growing number of tools and resources becoming available to insurance companies to underwrite business. The presenters will present some of the tools, data sources, uses and concerns in the underwriting process.
Note: The session above (29) can be found in the 10:30-11:45 a.m. time slot
For those of you fortunate enough to have seen the classic 1967 Academy Award nominated film, “The Graduate,” a line of advice on the future given to Dustin Hoffman’s character is still a classic. “I want to say one word to you... Just one word... Plastics...” Nowadays, in the field of life insurance underwriting, that might be expanded to two words: “Predictive analytics.” If you haven’t heard the term it will certainly become part of the underwriting experience in the upcoming years.