Why Underwriters Don’t Like Predictive Analytics

The level of insurance company employees fearing disintermediation from technology has been steadily increasing since the first policies were sold online, and now the discontent has spread to the underwriting practice. Though predictive analytics is becoming more commonplace among insurers, accoding to a Valen Analytics survey, underwriters’ adoption of the tools is a ‘significant’ or ‘high concern’ of 82% of respondents. Underwriters believe that their experience is more valuable than a predictive score when assessing risk, 24 percent of respondents said.