Integrating Analytics, Third Party Data, and Actuarial Assumptions

The rise of credit-based and lifestyle variables, along with other third-party data, presents new opportunities to refine actuarial assumptions and underwriting methods. This helps insurers sculpt their risk profile through the use of advanced analytics. However, evaluating the growing number of third-party solutions presents actuaries with new challenges to overcome and risks to manage. We present an overview of third-party data solutions and a framework for incorporating them into experience studies.