Emerging megatrends in this ever-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 to a new business model, technology solutions and people, rather than someone in isolation. Insurance business intelligence is a crucial opportunity for key executives and decision makers across the organization to seize 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
see some areas where bi is leveraged and will result in business growth.
business intelligence in the insurance industry drives data storage
Insurance companies must store and analyze massive amounts of data on a regular basis. Generally, a health insurance company collects the following information about a customer:
- health history
- state of residence
- claims history
- reimbursements other demographic information
- creating a data warehouse that keeps all your information on an optimized cloud platform and data warehouse virtualization tools keep your data stored securely on a remote server.
- Access permissions can be managed through two portals that limit access to different types of data based on the user’s authorization level.
- 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.
- financial reports that track internal expenses and earnings generated from premiums.
- operational reports that track staff productivity and workflows.
- reports that visualize data and enable managers to make high-level decisions
- subscription risk
- financial projection
- product profitability models
- combat fraud
- build efficiency in claims management
- identify dark and hidden opportunities
- better enablement of sales teams
and these are just some of the facts that the insurance company must consider before and after enrolling the client in a plan.
insurance companies can have a popular erp and crm to manage all these process flows. in which a comprehensive platform is missing that collects all the data and provides information that is important for making crucial decisions by senior executives. All data sets must be properly processed and analyzed in order to draw the correct conclusions from them.
business intelligence in the insurance industry aligns the data storage process in the following ways:
insurance companies use bi to generate accurate reports
business intelligence simplifies the reporting process for insurers. even SMEs or startups need to generate a wide range of reports, including:
Companies need to perform exploratory data analysis, predictive modeling, statistical analysis, and other complex calculations to create these reports. you can take advantage of technovert’s expertise in this to get as much critical information as possible with ease.
bi facilitates predictive modeling
In addition to storing data and generating reports, some companies are using bi in more transformative ways. predictive analytics is one of the most unique benefits and will likely become the new industry standard in the coming years.
Machine learning algorithms use past insurance claims to predict customer behavior and fraud incidents. these predictive models are above the actuarial models currently used.
Insurance companies should also collect this data regularly to make the best predictions. Also, the data may be out of date or even inaccurate, especially if your predictions are based on self-reported customer surveys.
artificial intelligence (ai) and machine learning models generate a specific predictive “score” for each claim. the more statements fed to an algorithm, the more accurate the scores become over time.
Insurance companies use this bi tool mainly to:
Benefits of business intelligence in the insurance industry
business intelligence has a wider adoption rate worldwide by businesses. Nearly every industry and business function reaped the benefits, and so did the insurance industry. Companies that use bi-service applications and tools have many advantages over those that do not, including:
Having access to business intelligence and analytics is crucial for any insurance company hoping to succeed in this highly competitive industry. the ability to turn large volumes of raw data into actionable information shows a significant value proposition for these companies. these insights can be invaluable in terms of the endless opportunities they can uncover in the business.
It all comes down to good data. we’ve got you covered for any data project across verticals. our comprehensive business intelligence consulting services including powerbisolutions, data visualization, dashboard design and & development along with dba support services can help.
Our experts help you discover how to unlock the true potential of data and take the next step in choosing the right tool and technology for any of your data applications. contact us to learn more about how you can transform your business.