In anticipation of his upcoming conference presentation, Defining Optimal Segmentation Territories – 10 Years of Research at Predictive Analytics World San Francisco, May 14-18, 2017, we asked Frédérick Guillot, Senior Manager, Research and Innovation at The Co-operators General Insurance Company, a few questions about his work in predictive analytics.
Q: In your work with predictive analytics, what behavior or outcome do your models predict?
A: At the Co-operators, we leverages predictive modeling for many purposes. We are using more traditional models to quantify the insurance risk of our clients. We also leverages more advanced techniques such as propensity model to maximize client engagement.
Q: How does predictive analytics deliver value at your organization – what is one specific way in which it actively drives decisions or operations?
A: Most pricing decisions regarding our insurance products are backed by predictive modeling. Predictive models also allow us to be more agile in many operational areas such as in the buying process, or the settlement of claims.
Q: Can you describe a quantitative result, such as the predictive lift of your model or the ROI of an analytics initiative?
A: Mixing traditional predictive modeling with geospatial analytic and Big Data is a very fertile research area for insurers. We spent more than 10 years so far in refining the way we are defining our segmentation territories, and each improvement translates into tangibles benefits for the organization. Over time, we managed to triple our territories’ homogeneity.
Q: What surprising discovery or insight have you unearthed in your data?
A: On the perspective of creating segmentation territories, I definitely think that the increasing availability of geospatial open data now enable many more opportunities for improving models and get more accurate predictions of insurance risk.
Q: Sneak preview: Please tell us a take-away that you will provide during your talk at Predictive Analytics World.
A: If you are not a little shy about a new predictive modeling application you are launching within your organization, you probably wait too long before releasing it. The territory analysis I will present in my talk is a good illustration of the minimum viable product mindset in which you better launch fast, and iterate over time to grow your model accuracy.
Don’t miss Frédérick’s conference presentation, Defining Optimal Segmentation Territories – 10 Years of Research on Wednesday, May 17, 2017 from 11:40 am to 12:00 pm at Predictive Analytics World San Francisco. Click here to register to attend. Use Code PATIMES for 15% off current prices (excludes workshops).
By: Eric Siegel, Founder, Predictive Analytics World
Eric Siegel is the founder of Predictive Analytics World (www.pawcon.com) — the leading cross-vendor conference series consisting of 10 annual events in New York, Chicago, San Francisco, Washington DC, London, and Berlin — and the author of the award-winning book, Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die – Revised and Updated Edition, (Wiley, 2016).