Forecasting is central to the insurance industry and predictive data analytics, models that use complex data to predict future events, has become a key tool for how insurers decide what a policy will cost. So when Allstate Insurance—recognized by U.S. News as a Most Connected Company—wanted to improve the model it uses to forecast bodily injury claims based on the type of vehicles involved in accidents, it looked to crowdsourcing for a solution.
Future crowdsourcing will sit side-by-side with Allstate's quantitative research and analytics department, consisting of a team of about 50 data scientists and data specialists. Huls described them as building "models to predict such things as the likelihood that a particular customer will incur a loss, renew or buy a policy, or pass a home inspection. We're excited to continue to benchmark our own models, build even better ones, and incorporate new techniques from these competitions."