Predictive Modeling in insurance industry

Claims Forecasting - insurers can use predictive modeling to forecast the number of claims, cause of loss and severity of claims.

Fraud Detection - insures can use predictive models identify patterns that indicate fraudulent activity.

Risk Assessment and Pricing - insurers can use predictive modeling analyzing geographical location, age of the home, homeowners' credit score, and building materials better assess the risk associated with a specific policy. This can help them price a policy more accurately.