The insurance data warehouse, once established, might contain keys for improving business operations and for designing new products by identifying correlations and patterns in the data that could not be otherwise deduced or intuited in the absence of data mining analysis. The uniqueness of insurance data warehouses derives from the predisposition of the industry to wait for technologies to establish themselves and to become productized before they are adopted. Assuming that visionary insurance industry leaders develop an appreciation of the potential of the technology, the data warehouse can deliver a wide range of benefits to the company. For one, data warehousing will enable insurers to create better policy types and to provide product bundles that better target specific customer classes. Information from data mining will enable these new products to be fielded without creating undue risk to the insurer.
Pricing reflects a risk rating for most property and casualty policies.
Ultimately, data warehousing will set the stage for the securitization of risk portfolios. Forward-looking property and casualty companies that deploy data warehousing and data mining strategies first will be in the best position to capitalize on this potential revenue stream.