SPSS Business Solutions | Risk Management

Effectively Manage Policyholder Risk

Each year, insurance companies protect both individuals and organizations from financial loss by assuming billions of dollars in risk. In order to do so, however, they must be able to accurately calculate the risk of loss associated with their policyholders. They must also determine the appropriate rates to charge policyholders and then write policies that will enable them to cover these risks.

An incremental challenge lies in finding the balance between appraising risks too conservatively and potentially losing customers to less expensive competitors, or having to pay excessive claims if underwriting is too liberal.

SPSS predictive analytics helps insurance companies address both of these challenges. Our software uses statistical and data mining techniques to develop accurate profiles of potential risk so that both policyholders and insurance companies’ bottom lines can be protected. Our software can also be used to determine the optimal premium amount to charge so that customer acquisition and retention rates can be maintained.

With SPSS solutions, organizations can:

Analyze any number of cases, from hundreds to millions
Build accurate, multidimensional profiles of potential risk
Identify the appropriate rates to charge and appropriate coverages to offer to specific insured parties
Incorporate experience back into the modeling process to ensure continued predictive accuracy
Determine the optimal price point for premiums to ensure competitiveness

Learn more about how predictive analytics help organizations manage credit risk.

Find out how organizations in the insurance industry benefit from SPSS solutions.

Learn about the use of data mining technologies to manage policyholder risk.

See how customers in the insurance industry are using SPSS solutions.