01:27 PM
FICO Launches Software to Improve Predictive Modeling
Minneapolis-based FICO has released Model Central, software that it claims enables insurers to reduce the time it takes to deploy predictive models.
The system also helps insurers measure the ROI of predictive modeling efforts, FICO claims. The company said in a recent survey of insurers, 64% reported that they "lacked the ability to rapidly deploy or update models to maximize business impact." Meanwhile, only about one in five have a system in place to measure models' performance.
"High-performing analytics are a cornerstone of high-performing insurers," says Russ Schreiber, FICO VP and head of the company's insurance practice, in a statement. "From mismatching product offers to getting the price wrong to missing fraudulent claims, weak analytic models hurt profitability. New insurance regulations such as Solvency II in Europe and similar proposals in the U.S. mandate that insurers do better."
[Read how predictive modeling is a competitive differentiator for insurers.]
Model Central presents a management dashboard of overall model health, providing early warnings of performance degradation, FICO claims. It also integrates models from various programming languages into one environment and includes simulation and testing capabilities and optimization of decisions.
To meet Solvency II requirements, the system provides a view across silos, including geographies, lines of business, and process areas, as well as access to legacy assets, improvements in data quality and availability and advanced management of analytic assets, according to FICO.
Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio