Data culled from external scanning systems and other tech tools can help insurers improve underwriting by showing where cyber claims might emerge.
But only if the companies develop methods for making proper use of that data, said a recent Gallagher Re report Can Scanning Technologies Predict Claims?
Systems designed to scan for risk scrape data on specific regions, economic sectors and other factors to assemble risk pictures beyond what insurers might gather from questionnaires conducted with their insureds. This data is often then run through algorithms and machine-learning tools to try and predict claims trends.
That can help risk managers work more efficiently by providing them with more comprehensive data sets. Beyond cyber risks, the scanning systems have been applied to fire, explosion, NatCats, intrusion and theft, storage sites and other areas.
The downside, though, is the systems often scrape so much data (as well as duplicate data) that interpretation becomes difficult. Over time, the report noted, AI and other filtering systems will help insurers sort the wheat from the chaff.
Despite present challenges, though, Gallagher’s research determined current…
