FICO unveils Model Central solution for insurance analytics
Apr 13, 2012 (Datamonitor via COMTEX) --
FICO, a provider of analytics and decision management technology, has unveiled FICO Model Central, a new solution for improving the ROI for predictive models used in insurance.
FICO Model Central solution for Insurance enables insurers to reduce model deployment times by as much as 50%, while also providing the first indications that a model's performance may be damaging profitability.
"Leading insurers rely on analytics across lines of business for marketing, customer management, underwriting, claims, and fraud prevention," said Russ Schreiber, FICO vice president and head of the company's insurance practice. "High-performing analytics are a cornerstone of high-performing insurers. The value Model Central offers is the ability to rapidly identify when model performance is drifting and then accelerate the deployment of more predictive models regardless of the modeling technology used."
"From mismatching product offers to getting the price wrong to missing fraudulent claims, weak analytic models hurt profitability," said Russ Schreiber, FICO vice president, who leads the company's insurance practice. "Yet in our recent survey, just 18% of insurers said they had a well-organized system for managing model performance. New insurance regulations such as Solvency II in Europe and similar proposals in the US mandate that insurers do better than this."
FICO Model Central Solution for Insurance provides a complete environment for managing predictive models in a reliable, automated and integrated way. It presents a management dashboard of overall model health, providing an "early warning system" that alerts personnel to performance degradation so they can take action before business decisions are impacted.
FICO Model Central Solution for Insurance coordinates model validation, task tracking and management reporting, storing complete and annotated audit trails to satisfy compliance requirements. It integrates models from various programming languages into one environment.
For insurers operating within the European Union, FICO Model Central Solution for Insurance lays a foundation for meeting Solvency II's capital adequacy and risk management requirements. It provides a view across silos, including geographies, lines of business, and process areas; access to legacy assets; improvements in data quality and availability, as well as advanced management of analytic assets; and complete transparency for audits, the company said.
"An analytics-driven business organization is where insurers have to be," said Karen Pauli, a research director at CEB TowerGroup. "Those analytics need to be quickly deployed and actively managed to maximize their value to the business. Insurers that excel at the operational side of predictive models will have a competitive advantage in the market."
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