Big Data and Analytics are empowering the business world every passing day. With access to unprecedented levels of structured and unstructured data flowing in and out through the insurance company’s systems, gazing future performances, consumer behaviour and fraudulent activities has become practically easy as well as a tough task.
As a people-driven and information rich industry, insurance agencies have numerous ways to refine their business processes on utilizing modern data analysis techniques.
Here are 4 key insurance company operations that can be streamlined using Analytics.
- Distribution and Sales
For insurance agencies to succeed, they need to provide sales representatives data that lets them make fast and accurate claims decision while on location with brokers or customers. Traditional point of sales weren’t prepared to deal with the requirements of a mobile sales group, and they often leave users struggling to find the in-depth insight into individual customers or prospects that sales professionals need to be effective.
Present day modern BI and Analytical tools furnish sales reps with added advantage of in-depth information regarding a policy or a customer.
- Latching Fraudsters
Fraud detection is of the most prominent need for insurance companies managing claims. How would you spot irregularities before a large payout is made? Most fraud solutions today are rules-based, and tragically, it is too simple for fraudsters to control and get around the rules.
Predictive insurance analytical tools utilize a blend of rules, analytical models, database searches and exception reporting to identify fraud right at the first screening and more effectively at each stage of the claims cycle.
- Claims Management and Underwriting
The claims procedure is generally the single biggest cost for an insurance provider, so it’s important that this procedure is as proficient and powerful as possible. Underwriters and claims managers constantly need to sort out immense amount of data from agents’ manually written notes to information from fraud records and data put away in claims databases.
The accuracy of underwriting calculations is a basic factor in the success of the insurance organization, and if the estimations aren’t exact, the organization faces the risk of being overpriced when compared to the market that may also lead to significant losses from unexpected claims payout. And with so many claims to process, it’s imperative that adjusters find ways to streamline their processes.
- Client Insight and Management
Like any industry, insurance business line is also an ever evolving and insurance agency that neglects to keep up with the changes often faces lower revenue generation and losing customers to competitors. Given the restricted time limits to see each client, it is important for insurers benefit as much as possible from each client communication. One approach to remain on top of things is by analysing the data through tools such as predictive, prescriptive and descriptive analysis.
Do remember that comprehensive customer profiles provide a better understanding of the insurance buyer’s preferences, lifestyles, call centre interactions, and other key characteristics. Insurers can leverage this data to deliver highly relevant and personalized offers and services.