GLOSSARY
What is Predictive Analytics?
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Quick Answer
Predictive Analytics uses historical data and machine learning to forecast future outcomes and trends. In enterprise contexts, it predicts claim severity, fraud likelihood, patient readmission risk, delivery delays, and other outcomes—enabling proactive intervention before problems occur.
Definition
**Predictive Analytics** transforms historical data into forward-looking insights. Rather than just reporting what happened, predictive systems forecast what will happen—and with what probability—allowing organizations to act preemptively.
Key Points
- Forecasts outcomes based on historical patterns
- Provides probability estimates with confidence intervals
- Identifies leading indicators and early warning signs
- Enables proactive intervention before issues escalate
- Continuously improves as new outcomes are observed
- Integrates with decision intelligence for action recommendations