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  • Writer's pictureKirk Hartley

Software, Predictive Models, and Discovery Against Insurance Companies

The discovery wars of tomorrow will include plaintiffs seeking access to existing and future analytic and predictive databases and models operated by insurers. Why? In part because the insurers are further ramping up the use of predictive analytics, according to a March 1, 2106 article in Carrier Management.  A key excerpt from its states:

“Some additional predictive modeling findings from the survey [of insurance companies]:

  1. About 28 percent of respondents said they’d use predictive modeling for fraud potential. That will jump to 70 percent in two years.

  2. Approximately 10 percent said they use the technology to calculate litigation potential. That jumps to 61 percent two years from now.

  3. While 18 percent said they rely on the tech for marketing and advertising, that number grows to 52 percent in two years.

  4. 42 percent said that big data helps with pricing, underwriting and risk selection, but 77 percent expect it to do so within two years.

  5. 60 percent said they expect big data to help inform their management decisions two years from now, up from 19 percent today.

  6. 58 percent said they envision big data helping their loss control and claims management within two years versus 17 percent now.”

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