How Data Analytics Is Preparing Insurance Sector For The Upcoming Decade

Back in 2006 when Mathematician Clive Humby coined the term ‘Data is the new Oil’, the world was just beginning to realize the true value of data that is accumulated in different forms. Today, however, data intelligence is at the heart of every domain with everyone scrambling to unlock the hidden secrets behind the data. The insurance sector stands out as an early adopter of data intelligence with many examples of corporations as well as agents using data in the underwriting.

With recent technological advancements such as predictive analytics, many organizations are leveraging the data to improve customer experience. Due to the huge amount of data that is captured on a daily basis in any insurance company, mastering the data by leveraging the right technology has become increasingly important. As this data continues to hold vital information, presenting the patterns in a manner that makes it easy for the stakeholders to make informed decisions. This is where a data visualization platform can become the differentiating factor between your insurance company and its competition in the market.

Importance of Data Visualization For Insurance Companies

Identifying Risks

The importance of data visualization is well highlighted by the saying ‘a picture is worth a thousand words’. Showing the trends by leveraging data is helping insurance companies to spot risks and act on them in a timely manner. With the help of a robust data analytics and visualization platform like ITLytics, claims specialists and sales agents can analyze data that is from customer interactions to flag credible risks and avoid cancellations.

Claims Analysis

A typical insurance provider will have a variety of different claims being filed by customers on a daily basis. From automobile users to physicians, these claims are filed from different sources such as mobile application, web, claim agents etc. A data visualization software such as ITLytics has the power to light up the hidden insights and provide stakeholders of the company to analyze the success ratio of claims filed under different categories. With the right visualization template, the decision makers can also analyze and predict future patterns with respect to the percentage of claims being closed via digital platforms and compare them to physical claim settlements.

Fraud Detection

For any insurance company, dealing with claims that appear to be fraudulent is one of the most time consuming tasks that the claim analysts have to engage in on a daily basis. Recognizing the common patterns via data analytics tool in the past fraud cases can empower the insurance officers by enabling them to rightly identify fraud cases and fasten the investigation process by as much as 5 times.

Premium forecasting

The biggest advantage of leveraging technology is that it saves time and fast-tracks decision-making resulting in a huge amount of money being saved. For insurance policies that employers buy, historical data has always been useful when forecasting premiums for the employees. By factoring in different parameters like age, gender, health status and region, users can easily create reports using data visualization tools to see past data and project costs of the premium.