Insurance firms deal with an influx of raw data ranging from actuarial to customer datasets, among others. As it stands, machine learning, artificial intelligence, and business intelligence are some of the top business performance enablers of data management in insurance.
Business intelligence allows companies to leverage big data and make decisions accordingly. For instance, an insurance agent who wants to sell an auto insurance policy can use a business intelligence tool to appraise a policyholder before awarding them a comprehensive car insurance policy. On that note, this article addresses four other ways BI solution impacts insurance businesses of all sizes, be it a small company or a large enterprise.
1. Fraud Detection
Combating insurance claim fraud is a challenge any insurance company in the U.S. can attest to as it leads to costly payouts and affects their profit. However, business intelligence software helps firms tackle fraud from all angles using a predictive analytics platform, which combines predictive models, data mining, database searches, and exceptional data preparation difficult to manipulate even by sophisticated fraudsters.
The BI tool uses its data visualization platform to construct these data into graphs, charts, tables, maps, and infographics that are easy to interpret by the end-user. Insurance firms can now use these data to create interactive dashboards that help alert and identify fraudulent patterns.
2. Improved customer service management.
The insurance industry is dynamic, and companies who cannot keep up with its changes risk making a loss and losing customers. As a result, customer management is more critical and challenging now than ever. For starters, these customers are looking for an easy solution to their pain points and don’t want to wait for long periods to get them. This is similar to waiting weeks to get a payout after a car accident.
BI software makes it easier for insurance companies to improve customer experience. For instance, an optimized claims process that utilizes self-service analytics enables agents to attend to more claims faster and improve workflow. In addition, firms can integrate a business intelligence platform with CRM for informational purposes and grant claim handlers actionable insights.
In terms of customer service, insurance companies can as a real-time data source to provide deep business insight into customers’ lifestyles and preferences. That way, they can customize their insurance products and adverts to suit the customer’s needs, thereby creating a bond with clients and staying ahead of the curve.
3. Risk management and underwriting.
Many insurance companies aim to make claim processing as efficient and effective as possible. However, underwriters face challenges with the overwhelming amount of data that they have to review, ranging from claims management databases to handwritten notes and data from the fraud list and ensuring accuracy in their calculations.
Business intelligence and Artificial intelligence provide firms with the analytical capability required to handle claims and serve customers better and confidently. It benefits all insurance stakeholders by first improving underwriters’ workflow. Secondly, it allows customers to easily make claims from their mobile device from any location using the insurance company’s mobile app. For instance, if there’s a natural disaster that leads to property damage, customers can easily take photos of the scene, share repair cost or replacement cost estimates, depending on the type of damage.
4. Performance monitoring.
As with any other business, the goal of insurance companies is profit maximization. To do so, executives need to have the right data analytics tools to review relevant data, identify profitable business opportunities and appraise performance to know if all departments meet their expected KPIs.
BI application provides insurance companies with a real-time dashboard and an interactive visualization that monitors market trends and all parts of the business in a convenient format. These visuals make it possible to plan, identify areas that need attention, and make informed decisions accordingly.
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