How Data Analytics Is Transforming the Insurance Industry?

How Data Analytics Is Transforming the Insurance Industry?

Posted on March 7, 2019

The insurance industry thrives on data. There is a huge amount of data involved in the insurance sector. The insurance professionals collect a humongous amount of data from the customers, and further hand it over to the underwriting analysts. The underwriters further evaluate the risks involved with insuring the person, based on various actuarial data, claims data, and some other techniques. From there on a policy is formed and initiated. Doesn’t it all boil down to data?

The problem with the traditional methods that have been followed for a while is that the data is restricted to only one device, and the underwriters can’t communicate with agents and brokers easily. The agents also can’t share their data across multiple offices. Also, the analysis of data is more complicated. Which is why, insurance companies are adopting upgraded systems, to implement data analytics. Let’s look at how data analytics is transforming the insurance industry:

  • Preventing and Reducing Fraud

    Actionable Intelligence from data analytics can figure out the most likely fraudulent persons. It can be used to predict an insurance fraud before it actually happens. For example, monitoring data in real-time from various social media platforms can be used to know if a policyholder is engaging in fraud. Suppose a person files insurance protection for a problem, but on social media, he is seen enjoying somewhere else, clearly, things are suspicious.

  • Helps in Pricing Premiums

    When an insurance company price premiums and policies, one problem they face is the accuracy of the data on the file. They make statistical predictions of insurable events, using a law called “The Law of Large Numbers”. Because of which, they are unable to predict individual accidents or incidents. To curb this, insurance companies have turned to data analytics to track individual policyholder behavior and then design policies accordingly.

  • Self-servicing of Policies

    Another huge revelation in the insurance sector is the self-servicing of policies. With the generation gone digital, every person knows to operate a website. More and more insurance companies are letting their policyholders manage their policy, which is working two-way. The policyholder is kept updated of his own policy and finds it easy to make a request for any change. Also, this has reduced a huge chunk of effort from the company’s perspective. This makes the customer happier as they feel more in charge and in control of their own policy.

Choose Flatworld Solutions for Cost-effective Insurance Services

Flatworld Solutions has been a pioneer in providing quality insurance BPO services to clients around the globe for over 15 years now. Having been in the industry for so long, we understand each client’s needs with ease and provide the required services. Our team comprises some of the most qualified and skilled individuals who have been working in the insurance industry for decades. We leverage the best and the latest insurance tools and technologies to deliver quality services.

If you are looking for a cost-effective and reliable insurance BPO service provider, then look no further. Get in touch with us today.

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