In the insurance sector, data and analytics offer dozens (if not hundreds) of ways to benefit the industry. From underwriting to pricing and claims, every facet of business within the sector is driven by data. If this data is not managed or analysed effectively, the organisation’s ability to deliver will be compromised.
“Underwriters within an insurance company play a very important role in terms of determining the terms and conditions of the policies that they provide, but this requires insight into customer needs. The innovation in this field has created a data driven conversation, rather than merely contacting customers during the annual renewal period,” advises Simon Kirby – Director of SI Industry Solutions: Financial Services at Qlik.
Data Driven Insurance
Actuaries work very closely with employees in both underwriting and claims to determine pricing. To do so, precise claims analytics are crucial. From a claims point of view, the need to be able to understand the claims paid, the types of claims received, and the information required to eradicate claims fraud cannot be overstated.
Proven Benefits in Insurance
- Reliable reporting is delivered in minutes/hours rather than weeks
- A Rates of Exchange models eliminate the need for expensive subscriptions
- Effective management of the claims loss ratio, with on-point analyses available for every aspect of the book, claims and pricing on items
- The creation of a sound data warehouse, with correct source data for reliable analysis and reporting
- Staff are more productive
- Marketing planning is more effective and Return On Investments analytics instantly available
- IT Service Desk has shown immense improvement in service levels
- Increased overall efficiency, productivity and customer service
Cost Saving, Efficiency and Decision-Making Power
Data analytics empowers the insurance industry to realise cost savings. This can be seen in effective claims management and the elimination of expensive subscription services which can be managed in-house. Data management, data analysis and reporting are made vastly more efficient when the right information is at hand – and with the right tools to draft an accurate story from the data. If data is managed correctly, the high level of reliability means information is accurate, which ensures strategic and beneficial decisions can be made.
Preventing Segmented Solutions
Information restricted to silos limits the reliability of the data. Similarly, reporting in silos leads to departments or business units making contradictory decisions and creating impasses in the management of the organisation as a whole. In insurance, access to information regarding every aspect of the book, claims and pricing effectively empowers the business to better manage its loss portfolio. With a focus on efficiency throughout the organisation, loss controls are supported by effective human resources, well-managed operations and efficient financial management – all comprehensively contributing to ultimate business success.