Insurance companies are leveraging big data to assess risk factors, identify trends, and personalize coverage options for trucking operations. IBM defines big data as “a combination of structured, semi-structured and unstructured data that organizations collect, analyze and mine for information and insights.” It’s used in machine learning projects, predictive modeling, and other advanced analytics applications. Machine learning involves using machines to imitate human intelligence. Predictive modeling analyzes historical and current data to help predict future outcomes.
Insurers use big data – from GPS systems to telematics, sensors, and more – in the trucking industry in various ways. For example, insurers use data from telematics to collect driving behavior, vehicle usage, routes, and vehicle maintenance. The data helps underwriters better assess an operation’s risk profile. They can also price risks accordingly. Insurers can gain great insight into how your fleet is performing and how it compares to all the other fleets they insure. Safer fleets can pay a lower premium.
Additionally, data insights allow insurance companies to provide specific safety recommendations for truckers. This can help reduce accidents and improve overall fleet efficiency. Insurers can also develop a loss-prevention program based on data trend analysis. They can identify common issues truckers face, such as cargo theft, and provide measures to mitigate the risk.
Some insurers are using telematics data for improved claims management. The data can generate detailed accident reports, which reduces the time adjusters spend investigating claims and expedites claims resolution and payment.
Big data is being used to gain insights into market trends and competitive dynamics to explore new, innovative product lines and service models. Data analytics also provides insurers with an opportunity to analyze and unveil customer behavior patterns and preferences to tailor insurance packages that better meet truckers’ needs.
Furthermore, with the explosion of artificial intelligence (AI) on the scene, AI and big data together can facilitate the development of more sophisticated predictive models, improving an insurer’s ability to forecast future trends and make proactive strategic decisions.
About Western Truck Insurance Services
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