Innovation is a mark of change. And to stay afloat in today’s competitive marketplace an insurance company needs to effectively channelize new techniques that leads to business growth.
One such area which needs to be tapped in by the small to medium sized insurers is Analytics, as effective analytics play multiple roles in improving claims processing efficiency and lowering the overall costs.
Keep in mind that business rules can help insurers make sound underwriting decisions, which most of the times is heading off difficult and/or costly claims before they occur, by analyzing applicant information and comparing this data with the insurer’s experience with similar applicants.
Analytics can help extend small to medium sized insurer’s reach to tap into industry, law enforcement and other databases to help prevent so-called insurance fraud.
Rapid Claims Innovation in P&C
Impacting the claims procedures with tools like FNOL, claims management, data management, subrogation, litigation and analytics tools are very much accessible today, on account of fast improvements in technology and administrations.
Property and Casualty (P&C) claims is ready to profit by headways in data management and insurance analytical capabilities, BPM and Big Data services. We at Inniti, as a partnering insurance company provides the aforementioned insurance services to our clients in claims management and processing including management consulting, pre-configured claim solutions, FNOL, data analytics and outcome based business process services.
Utilizing Predictive Analytics as a tool to forecast future business trends
A better application of advanced predictive analytics used in managing claims, leads to increased access to robust data sources, and strong integration with workflow. Bringing about significant reductions in claims loss is possible through qualitative influence on claims handlers from predictive modeling.
Three Critical benefits of predictive analytics are:
- Claims decisions making will be pacier with the help of data
- Overall Expenses will be lowered
- Improved profitability, precision and business growth
Claims management and processing is a dynamic practice as every claim has its own repercussions and hence analytics cannot afford to be a static application. Do remember that Insurance Analytics must be a continuous, dynamic process, with each claim re-scored every time data changes.
Predictive analytics is meant to ensure that every claim is optimally processed. The low-risk claims are approved speedily to complete reduced claim management expenses and increase consumer satisfaction, whereas the complicated claims are left to be handled by skilled claims managers.
The immediate utilization of modern, predictive models is necessary in insurance businesses, especially for small to medium insurers, and also established organizations where the claims ratio is menacingly high, at around 85%-90%. These comprise the three of the biggest businesses of insurers, which is Auto, Health, Property and Casualty insurance service line. Even so its immediate importance is no less in other insurance businesses, including life insurance.