There is no doubt that analytics is an overused and often abused term. So what does really analytics means?

In part 2 of a series of articles on the analytical lifecycle, this blog will highlight some of the common and emerging techniques used to analyze data and build predictive models

Exploratory data analysis
The science of extracting insight from data is constantly evolving. But regardless of how much data you have, one of the best ways to determine important information is through exploratory data analysis. Some of the most valuable ways you can do this are:

• Line graphs
• Bar and pie charts
• Scatter and bubble plots
• Correlation matrices
• Clustering

Predictive modeling techniques
To gain an edge in today’s competitive market, insurance companies need advanced analytics solutions that reveal hidden patterns and insights. A few of the most valuable predictive modeling techniques are:

• Regression models
• Generalized linear modeling
• Decision trees
• Forecasting

Emerging analytical techniques
The digital age has brought with it a quantum increase in the amount of data available to companies. The vast majority of new data being created is semi-structured and unstructured data, both of which require new analytical techniques to generate insights. Several of the most important, emerging analytical techniques used to analyze big data are:

• Link analysis
• Textual analytics
• Word clouds
• Sentiment analysis

Analytics is no longer a luxury. It has become fundamental to the success and growth of insurance organizations worldwide because it supports better decision making about customers, prices, offers and more. The key is turning the massive amounts of data your company has collected – and continues to collect – into timely, trusted insights and competitive advantage. The best way to do this is through proven analytical techniques. To learn more about the available analytical capabilities download the white paper “Demystifying Analytics: Proven Analytical Techniques and Best Practices for Insurers”.

I’m Stuart Rose, Global Insurance Marketing Director at SAS. For further discussions, connect with me on LinkedIn and Twitter.