Rate Making

fp-banners-dnn-insurance-rate-making

 

 

 

 

Rate Making

In rate making, it is important to accurately estimate the frequency and severity of expected claims so that premiums are set properly. The premiums need to adequately cover payouts while providing a competitive cost to the customer. The bottom line is, risk and the expected value of payouts must be accurately estimated to set optimal pricing.

STATISTICA offers predictive model building tools applicable in a variety of areas including underwriting, rate making, claim management, and fraud detection. In addition, STATISTICA Enterprise allows the company to automatically monitor and alert when patterns change. This helps to stay ahead of factors that will influence premiums. Forecast models may be enhanced by the addition of unstructured text information to the predictive variable pool.

STATISTICA Solution

  • Understand and model risk: From traditional statistical procedures to complex data mining algorithms, STATISITCA offers all the tools needed for actuarial analysis.
  • Find anomalies that may indicate fraud: Tools like principal component analysis and clustering reveal claims that are different from the majority.
  • Improve analysis by adding free form text: STATISTICA Text Miner allows you to harness the value hidden in free form text and enhance the analysis.
  • Visualize the data and results: STATISTICA offers high powered, easily customizable graphics for exploring the data and displaying the results.
  • Automatically monitor metrics that indicate changes in risk: STATISTICA Enterprise automates data retrieval and analyses, sending alerts when necessary.
  • Real-time scoring from predictive models: STATISTICA Live Score gives instant access to deployment of the predictive models of risk.
Advertisements

About statsoftsa

StatSoft, Inc. was founded in 1984 and is now one of the largest global providers of analytic software worldwide. StatSoft is also the largest manufacturer of enterprise-wide quality control and improvement software systems in the world, and the only company capable of supporting its QC products worldwide, with wholly owned subsidiaries in all major markets (StatSoft has 23 full-service offices, on all continents), and its software is available in more than 10 languages.

Posted on September 12, 2013, in Uncategorized. Bookmark the permalink. Leave a comment.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: