Predict & Prevent as Insurance Buzzwords
Every industry has its buzzwords or emerging concepts. For example, the 1st time I heard Synthetic Data the reaction was “Ah Ha! That’s how to describe the Voice of the Acre®.” Athena takes raw data that is difficult to understand or aggregate and refines it into a new form, which underwriters can use for Predictive Analytics.
I had the same reaction this morning, Ah Ha!, when I opened Paul Carroll of Insurance Thought Leadership’s email with an essay about the move towards “Predict and Prevent” in underwriting. Wildfires are a good example of where the Property Insurance industry can take a leadership role, to improve customer experience AND profitability. The key to reducing hardship for homeowners is both home hardening AND community response to reduce risk, adapt to climate change and increase resilience.
My new favorite buzzwords for wildfire are predict and prevent.
Paul Carroll’s title for the article, The Game is Afoot! references Sherlock Holmes. Paul writes, What’s become known as “predict and prevent,” as opposed to the traditional “repair and replace” model for insurers, was hardly original with me, and I’m just one of many who have increasingly leaned into the model. But I’m struck by a recent confluence of events.
The Institutes is developing a podcast series on “predict and prevent,” in which CEO Pete Miller will interview thought leaders on the topic. And annual reports on the industry from both Bain and McKinsey in the past week have singled out “predict and prevent” as a major theme for 2023.
Athena Intelligence is a next generation InsurTech data vendor which produces synthetic data. The earth’s essential data is refined to make it easy for enterprises to use environmental information for future contracts, proprietary business decisions and risk management.
