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.