How Insurers can Make the Most Out of Modern Analytics?

By Insurance CIO Outlook | Monday, July 06, 2020

To get the best out of analytics solutions, insurance companies should look to leverage comprehensive sets of data.

FREMONT, CA: Insurance companies today have the opportunity to deploy data analytics solutions to improve several aspects of their business. However, whether an insurance company uses segmented data to drive targeted business functions, or uses enterprise-wide data, it is crucial to determine the outcomes largely. According to a survey report by Strategy Meets Action, 72 percent of insurance companies currently use the targeted and segmented approach to analytics. Although widely preferred, this approach seems to be lagging in certain aspects when compared to the enterprise-wide approach. Thus, it is essential for competitive insurance providers to have a relook at data analytics strategies.

The insurance market place is dynamic and extremely competitive today. In such a scenario, using segmented data to power data analytics limits the functionality of the analytics solutions.  Instead of a siloed approach, if insurers allow data sources to converge, the results of data analytics could be even better. There is no dearth of data for insurance companies today. The channels through which insurance companies can access data vary from conventional ones like customer information forms to newer ones like social media platforms and smartphone apps. 

Data, both structured and unstructured, sourced from a wide range of locations, give the most comprehensive insights regarding aspects like customer expectations and product popularity. With these insights, insurance companies are better placed to uncover new opportunities in an extremely diverse global market. The same cannot be said when analytics tools are fed with data from a single source like customer feedback channels.

Similarly, integrated data prove more impactful when security is concerned. The wider the scope of data being analyzed, the better are the prospects to prevent fraud. Apart from that, extended sources of data also optimize product development, process automation, and new business models. The right combination of data can substantially enhance the returns from analytics capabilities that insurance companies already possess. Thus, the right approach to data utilization can deliver the best results from analytics solutions.

See Also :- Top Insurance Technology Solution Companies

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