Predictive analytics. A cold phrase, is it not? Cold. Imposing. Formidable. Big Brother. Minority Report. (Remember the Tom Cruise movie?) A practice that’s good for the insurance company, but bad for everyone else. But is it really?
At the core of insurance fundamentals is the need to set prices to match the risks. Insurance companies, as part of good customer service, attempt to help their policyholders reduce their risks. As in loss control. Safety engineering. Risk management.