Data plays important role in insurance industry. The business model depends on probability of future events. Hence, data analysis of insurance data can assist in effectively gauging the financial situation of the insurance organization in terms of risk and possible return.
Predictive analytics is used in appraising and controlling risk in underwriting, pricing, rating, claims, marketing and reserving in Insurance sector. Predictive analytics by using statistical models can help in claim fraud analytics and claim provider fraud analytics. In addition, the campaign analytics, actuarial analysis, etc. can be done in a scientific data-driven fashion.