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201205 Property Casualty 360: TMI is Never Bad
The document discusses the balance between relying on gut instincts and using data analytics in business decision-making, particularly for underwriters and baseball managers. It emphasizes that while experience and intuition are valuable, incorporating predictive analytics can lead to more informed and potentially profitable decisions. A survey mentioned in the document indicates that while leadership often depends on experience, there is a growing reliance on analytics alongside traditional decision-making methods.
201205 Property Casualty 360: TMI is Never Bad
- 1. Connect: Twitter Facebook LinkedIn RSS Property Casualty 360 FROM THE MAY2012 ISSUE OF TECH DECISIONS • SUBSCRIBE! TMI is Never Bad How much information is considered too much information when it comes to business decisions? There are those who believe they already know enough to handle just about any situation and they’ve come to rely on gut instincts. These people are sometimes admired for this ability, but has enough measurement been done to determine if those gut choices are great decisions or merely good ones? Baseball managers are known to “throw out the book” when they make difficult choices that aren’t supported by the game’s conventional wisdom, although going by the book means relying on old measurements that are often based on incomplete data. Observers of the game often are derided for studying new ways to solve old problems as if the game is some mysterious art form that can’t be broken down into basic building blocks that can be solved by a thorough examination of the problem. In many ways, baseball managers are like underwriters who have been doing their job so long they feel their reaction to certain triggers enables them to make the right decisions. Certainly those qualities put them in an excellent position as decision-makers, but as similar as some circumstances seem to be, we know that no two are ever identical and it’s the wise person—armed with more than instinct—who recognizes even the most subtle of differences. BY ROBERT REGIS HYLE, PROPERTYCASUALTY360.COM May 1, 2012 • Reprints Page 1 of 2TMI is Never Bad | PropertyCasualty360 5/12/2012http://www.propertycasualty360.com/2012/05/01/tmi-is-never-bad
- 2. Like Predictive analytics hasenhanced what underwriters do. It certainly hasn’t replaced the experience they have gained. That experience gives them the edge in knowing where to look for answers and a reminder that events don’t always play out the same way. Tech Decisions recently hosted a Webinar on the use of analytics called: “The Analytics Gold Rush: Mountains of Data, Hidden Profits.” Steve Callahan of Robert E. Nolan Co. and Alan Rault of American Family Insurance explained how vital analytics can be for the performance of your company. They have “the book” on analytics, but that hasn’t stopped them from being quizzical. Nolan and Tech Decisions surveyed our readers on the subject and I’d like to share a small nugget with you. When asked which factors leadership decisions typically rely on, experience is “almost always” relied on, which is hardly a surprise. The good news is intuition and collaborative consensus are “typical/common” for decision making, and the use of historical and predictive analytics is moving up among decision makers. No one is using analytics “exclusively” according to the survey. Analytics, much like experience, is a tool for business leaders to take advantage of. Combine it with other factors and you will get better decisions—the kind that make you money. COMMENTS Showing 0 comments Trackback URL © 2012 PropertyCasualty360, A Summit Business Media website Page 2 of 2TMI is Never Bad | PropertyCasualty360 5/12/2012http://www.propertycasualty360.com/2012/05/01/tmi-is-never-bad