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This is how the Insurance industry will be modified with Data Analytics

Insurance industry will be modified with Data Analytics

Published on Mar 06, 2020

Is there any industry that Data Analytics hasn’t impacted yet?  

Probably no. 

Here is one more addition to the list of industries that have been disrupted by Data Analytics – Insurance.  

Insurers face numerous challenges on a day-to-day basis. This article expresses views on how data analytics will benefit the insurance industry not only in handling big data but in various other operations. 

Customer Loyalty boosted through Customer-Centricity 

Almost all industries have begun to understand the importance of customer-centricity. The insurance sector is no exception. The best example of analytics in the insurance industry is the development of intelligent insurance management platforms.  

The platforms, which were built with the sole purpose of gleaning actionable consumer insights include smart dashboards which makes it easy for agents to gain complete knowledge of a client from their portfolio. The system also alerts the agents automatically in case of gaps in coverage or other discrepancies.  With the support of the intelligent insurance management platform, agents can actually improve customer services and make the client feel that they are actually cherished and not valued only in terms of sales. 

Pricing Optimized for Policies and Premiums 

A common problem that insurance companies often run into is pricing policies and premiums. 

Risk Insurance

To explain the context, let’s consider the case of accidental insurance. Though a policyholder can be a good driver, there are fair possibilities that he can be involved in an unfortunate accident. Here, both the drivers are charged the same premium, which may work well for agents, but it may not be the same case for the policyholder. 

Employing data analytics can enable companies to monitor the policy holder’s driving behavior and extract contextual intelligence to reprice the policy premiums accordingly. In this way the policyholder gets to pay a fair price for coverage and companies can offer a competitive price for policies and premiums in the insurance industry.     

Fraud Cases reduced extensively  

Fraud cases have been a constant distress for companies in the insurance industry. As per research, 1 out of 10 claims is marked fraudulent. Consumers have grown smart in filing fraudulent claims and this has become an alarming situation for insurance companies lately. With Data analytics, enormous data can be processed and evaluated quickly, and such incidents can be reduced significantly. Social Network Analysis and telemetric are the two substantial big data solutions that insurers leverage to address insurance fraud issues. 

Subrogation and Settlement Cases made uncomplicated 

Lawsuit settlements and subrogation cases is another arduous task for insurance companies. These cases require a lot of data analysis across various records like police records, medical records, and other case-related sources to settle the needed claim in time. With data analytics, it’s not only plausible to identify and segment such cases, but also process the insurance payouts promptly. Here data analytics helps reduce labor costs along with time efficiency.  

To Sum Up 

Insurers have been striving to be more relevant and efficient for a long time now. As the power of data is unleashed in full measure , the application of big data analytics in the insurance industry can definitely empower insurers to comb through a multitude of data speedily and glean actionable insights to improve customer experience, streamline policy premium and costs, and eliminate fraudulent cases.