Stages of Analytics

Stage 1: Descriptive Analytics

  • Organizes data producing big reports but little insight
  • Lag measures and describes what happened, but not what is likely to happen
  • Necessary step to get to other stages but not actionable information

Stage 2: Predictive Analytics

  • Why BST predictions are more accurate
  • Actual claims data vs. actuarial data
  • Out of sample data comparisons

Stage 3: Prescriptive Analytics

  • Robust Optimization…accounting for uncertainty
  • Math and science provide specific direction based on data analytics
  • Better data analytics, better decisions, better outcomes