Emerging megatrends in this fast-changing world, increasingly affected by multiple global challenges, pose testing challenges for the insurance industry. As customers continue to demand an enhanced digital experience, successful insurers will be those that collaborate openly and shift their focus on a new business model, technology solutions, and people, rather than anyone in isolation. Business Intelligence for insurance is a crucial opportunity for key executives and decision-makers across the organization to leverage and make well-informed business decisions to sustain and grow businesses in today’s competitive landscape.
Insurers must meet global challenges head-on in Business Intelligence for the Insurance industry
Check out a few areas where BI is leveraged and will result in business growth.
Business intelligence in the insurance industry boosts data storage
Massive amounts of data need to be stored and analyzed by insurance companies on a regular basis. In general, a healthcare insurance company collects the following information about a customer:
- Health history
- State of residence
- Claims history
- Reimbursements Other demographic information
And this is just some of the data that the insurance company needs to consider before and after enrolling the customer in a plan.
Insurance firms may have a popular ERP and CRM in place to manage all these process flows. Wherein there lacks a comprehensive platform that gathers all the data and gives out insights that are considerable for crucial decision-making by top executives. All the data sets need to be processed and analyzed properly in order to draw the right conclusions from them.
Business intelligence in the insurance industry aligns the data storage process in the following ways:
- Creating a data warehouse that keeps all your information in an optimized cloud platform and Data warehouse virtualization tools keep your data stored securely on a remote server.
- Access permissions can be managed across BI portals which limit access to different types of data based on the authorization level of the user.
- Only claims adjusters have access to their assigned claims and financial reporters only have access to the financial data they need to make strategic decisions accordingly.
Insurance companies use BI to generate accurate reports
Business intelligence simplifies the report generation process for insurers. Even SMEs or startups must generate a wide range of reports, including:
- Financial reports that track internal expenditures and profits generated from premiums.
- Operational reports that track staff productivity and workflows.
- Reports that visualize data and enable managers to make high-level decisions
Firms need to perform exploratory data analysis, predictive modeling, statistical analysis, and other complex calculations to create these reports. You can leverage Technovert’s expertise on this to grab the most possible and critical insights with ease.
BI facilitates predictive modeling
Apart from storing data and generating reports, some companies are using BI in more transformative ways. Predictive analysis is one of the most unique benefits, and it will likely become the new industry-wide standard in the next few years.
Machine-learning algorithms use past insurance claims to predict customer behavior and incidents of fraud. These predictive models are above the actuarial models currently used throughout.
Insurance companies also must collect this data regularly to make the best predictions. Moreover, the data can be outdated or even inaccurate, especially if you’re basing predictions on self-reported customer surveys.
Artificial intelligence (AI) and machine-learning models generate a specific predictive “score” for every claim. The more claims that an algorithm is fed, the more accurate the scores become over time.
Insurance companies use this BI tool primarily for:
- Underwriting risk
- Financial projection
- Product profitability models
Benefits of business intelligence in the insurance industry
Business Intelligence has a wider adoption rate across the globe by businesses. Almost every industry and business function reaped the benefits of it and hence the same with the insurance industry. Companies that use BI service applications and tools have many advantages over those that don’t, including:
- Combat fraud
- Build efficiency into claims management
- Identify dark and hidden opportunities
- Better enablement of sales teams
Having access to business intelligence and analytics is crucial for any insurance company craving to succeed in this highly competitive industry. The ability to turn large volumes of raw data into actionable insights showcases a significant value proposition for these businesses. These insights can be invaluable in terms of the endless opportunities they can unearth across the business.
It all comes back to good data. We’ve got you covered for any data project across verticals. Our comprehensive business intelligence consulting services inclusive of PowerBI solutions, Data Visualization, Dashboard Design & Development along with DBA support services can help.
Our experts help you to discover how to unlock the true potential of the data and let you take the next step in choosing the right tool and technology for any of your data applications. Contact us to know more about how you can transform your business.