Data analytics in Insurance Industry
Today, it is essential that all industries should focus not only on improving data solutions, but also on analysing them and using the results on an ongoing basis.
Marketing proves that data-driven organizations are dozens of times more likely to attract customers than their counterparts who don’t.
Data analysis is the process of scrutinizing, transforming, and modelling raw data to obtain useful information for drawing conclusions and making correct and effective decisions.
Insurance is a data-driven industry. More and more companies are upgrading their systems to be able to take advantage of insurance data analytics in their business, but only those who develop analytics mechanisms to optimally predict reports with big data, converting them into useful insights, can make the most of them.
Data insurance specialists can collect data from telematics devices, smartphones, the Internet and social media, surveillance videos, voter lists, credit information, website analytics, government statistics, satellite data, etc.
Moreover, the advent of cloud computing helps insurance companies automatically collect and store data, conduct end-to-end system analytics to improve pricing accuracy, create customized products and services, strengthen customer relationships, prevent losses more effectively and intelligently assess each policyholder’s risk.
Insurance analytics is constantly changing the way the insurance industry operates. Insurance companies need to be aware of the benefits that can be used to improve their business processes and make the best use of data. They need to understand how data affects an insurance company’s internal processes, what the impact of data analytics is in the insurance industry and implement it accordingly.
How the use of data and analytics helps insurers
- Obtaining information about clients and evaluating their experiences;
- Providing customer-focused services;
- Reducing fraud and waste;
- Accurate pricing based on policyholder behaviour;
- Self-service policy issuance;
- Predictive risk assessment for underwriting;
- Claims management;
- Providing oversight of key risk and compliance metrics for insurance companies;
- Managing data related to the capital model;
- Enhancing brand value through increased customer satisfaction.
- Ensuring business growth.
Big Data analytics is a powerful tool that is taking the insurance industry to new heights. It helps today’s insurance industry leaders retain customers, provide better services, and make key business decisions.