The digital disrupters entering the insurance industry will likely use the data generated from the digitization of our lives to maximize their risk-assessment capabilities in an effort to build a competitive edge. Traditional carriers cannot continue to rely on their usual risk-assessment methods if they are going to compete effectively and be market leaders.
This PoV discusses a new predictive behavioral model that Accenture has developed with researchers at the Stevens Institute of Technology to provide carriers a competitive advantage in understanding risk. Rather than examining only past events, insurers should understand risk as a function of customers’ behavior and how that behavior influences other customer segments. This report explains how the Spatial Risk Diffusion Model can aid insurers in adopting this more sophisticated risk-assessment approach.
