By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
SmartData Collective
  • Analytics
    AnalyticsShow More
    predictive analytics in dropshipping
    Predictive Analytics Helps New Dropshipping Businesses Thrive
    12 Min Read
    data-driven approach in healthcare
    The Importance of Data-Driven Approaches to Improving Healthcare in Rural Areas
    6 Min Read
    analytics for tax compliance
    Analytics Changes the Calculus of Business Tax Compliance
    8 Min Read
    big data analytics in gaming
    The Role of Big Data Analytics in Gaming
    10 Min Read
    analyst,women,looking,at,kpi,data,on,computer,screen
    Promising Benefits of Predictive Analytics in Asset Management
    11 Min Read
  • Big Data
  • BI
  • Exclusive
  • IT
  • Marketing
  • Software
Search
© 2008-23 SmartData Collective. All Rights Reserved.
Reading: 5 Ways Big Data Is Making a Splash in the Insurance Industry
Share
Notification Show More
Latest News
ai digital marketing tools
Top Five AI-Driven Digital Marketing Tools in 2023
Artificial Intelligence
ai-generated content
Is AI-Generated Content a Net Positive for Businesses?
Artificial Intelligence
predictive analytics in dropshipping
Predictive Analytics Helps New Dropshipping Businesses Thrive
Predictive Analytics
cloud data security in 2023
Top Tools for Your Cloud Data Security Stack in 2023
Cloud Computing
become a data scientist
Boosting Your Chances for Landing a Job as a Data Scientist
Jobs
Aa
SmartData Collective
Aa
Search
  • About
  • Help
  • Privacy
Follow US
© 2008-23 SmartData Collective. All Rights Reserved.
SmartData Collective > Uncategorized > 5 Ways Big Data Is Making a Splash in the Insurance Industry
Uncategorized

5 Ways Big Data Is Making a Splash in the Insurance Industry

Lbedgood
Last updated: 2015/09/14 at 5:56 PM
Lbedgood
7 Min Read
SHARE

big data insurance

5 Ways Big Data is Making a Splash in the Insurance Industry

There’s conflicting opinions on when the term Big Data really came onto the scene, but it is undeniable that its notoriety has skyrocketed in the past few years.

Contents
5 Ways Big Data is Making a Splash in the Insurance Industry5 Ways Big Data is Making a Splash in the Insurance Industry1. Data for streamlined underwriting 2. Data for Personalized Policies 3. Identifying Customers at Risk of Cancellation  4. Identifying Risk of Fraud 5. Customer Relationship Management

big data insurance

5 Ways Big Data is Making a Splash in the Insurance Industry

There’s conflicting opinions on when the term Big Data really came onto the scene, but it is undeniable that its notoriety has skyrocketed in the past few years. Big Data has become the hot topic buzzword around the internet, as is made obvious in the Google Trends graph below.

One by one as analytics solutions became more accessible, industries found different ways to leverage the Big Data Revolution to their best advantage in their field. Virtually every industry, from manufacturing and retail to healthcare and education, has found a use for the ever-growing labyrinth of data resources.

The Insurance Industry is no exception in the Big Data Revolution. The Ernst and Young 2015 Global Insurance Outlook claims “technology” is the one word that encompasses the Insurance industry right now. The report states, “Insurers across all regions are capitalizing on data analytics, cloud computing, and modeling techniques to sharpen their market segmentation strategies, reduce claims fraud and strengthen underwriting and risk management.”

More Read

big data improves

3 Ways Big Data Improves Leadership Within Companies

IT Is Not Analytics. Here’s Why.
Romney Invokes Analytics in Rebuke of Trump
WEF Davos 2016: Top 100 CEO bloggers
In Memoriam: Robin Fray Carey

big data trending

Although there are many ways that Insurers are utilizing Big Data and data analytics to benefit their bottom line, there are 5 areas being impacted the most.

1. Data for streamlined underwriting

Insurance underwriters are faced with the daily challenge of providing policy recommendations that are both fair to the consumer, as well as protect the best interest of the insurance company. Big Data is changing the future for underwriters as they must adapt to their new roles as data analysts as well as underwriters.

A study by Marketforce, the Chartered Insurance Institute (CII) and the Chartered Institute of Loss Adjusters in conjunction with Ordnance found that most underwriters are taking the evolution of their industry in stride. The study revealed that 9 out of 10 underwriters see the potential in access to real-time claims data to improve pricing accuracy.  Real-time data mining is streamlining the underwriting process by providing accurate, current insights that could have taken days to locate and consolidate. With access to quality data sources, underwriters are able to complete processes in less time and with better accuracy. Real-time data facilitates streamlined processes leading to higher placement rates and a much faster underwriting cycle.

risk

2. Data for Personalized Policies

Access to multichannel data sources gives underwriters the ability to base premium costs and policy parameters on a more realistic view of risk as opposed to generalized assumptions based on factors such as location and age. Consequently, this integration of highly granular and individualized characteristics into the underwriting cycle is driving a more personalized consumer experience. Customers who feel they are receiving fair treatment instead of at the mercy of generalizations receive a more positive experience and are more inclined to remain loyal clients.

3. Identifying Customers at Risk of Cancellation  

Leveraging Big Data insights is well known for its ability to provide quality prospects for businesses, but another lesser known feature is its ability to shed light on low quality prospects or frustrated clients. Advanced analytics tools allow insurers to target individuals who are apt to be a long term loyal customer, and also to weed out individuals who are a high risk of canceling coverage. Predictive analytics is used to track and reveal signal behaviors that indicate an impending cancellation. This allows insurance agents to reach out to unhappy consumers before their final decision has been made, and tailor opportunities to encourage them to stay with the company. 

4. Identifying Risk of Fraud

Fraudulent claims are an unfortunately common occurrence afflicting the insurance industry. The Coalition of Insurance Fraud estimates that nearly $80 billion in fraudulent claims are made annually in the United States. This staggering statistic has led to heightened awareness and the use of predictive data analytics to detect applicants with a higher propensity to commit fraud. Additionally, after a claim has been made Insurers can use data mining to track digital and social channels for evidence of fraudulent behavior.

5. Customer Relationship Management

Data has become an indispensable tool for Insurers to implement positive consumer relationships and intuitive acquisition strategies. Delivering exceptional customer experiences through a comprehensive customer profile provides better understanding of customers’ preferences, lifestyles, and other key characteristics, which allow insurers to deliver highly relevant and personalized offers. By investing in Data Integration and Quality solutions, insurers can build a fully integrated marketing database that pulls data from various locations to improve customer intelligence and ensure a positive experience. Concerning acquisition, insurers use DaaS to monitor  behavior in real-time to target high quality prospects.

One example is a national life insurance company who knows that 41% of life insurance purchases are motivated by life stage events. Armed with this knowledge, they used DaaS to examine potential data sources such as baby shower registries (arrival of a new child), wedding registries (inclination of customers to plan ahead for spouse’ sake), or various social signals that indicate retirement or improved financial state that places individuals in a primed mental state to receive advertisements on life insurance. Tragedies can also influence insurance purchases. The death of a loved one, a natural disaster, or nearby crime all encourage an interest in planning for the future.

Big Data is impacting all industries in different ways, but it’s certain that the insurance industry is one of the leading innovators of DaaS implementation. As industry leaders continue to invest in Big Data solutions it will soon become as ingrained into the insurance industry’s processes as underwriting itself.

 

 

Lbedgood September 14, 2015
Share this Article
Facebook Twitter Pinterest LinkedIn
Share

Follow us on Facebook

Latest News

ai digital marketing tools
Top Five AI-Driven Digital Marketing Tools in 2023
Artificial Intelligence
ai-generated content
Is AI-Generated Content a Net Positive for Businesses?
Artificial Intelligence
predictive analytics in dropshipping
Predictive Analytics Helps New Dropshipping Businesses Thrive
Predictive Analytics
cloud data security in 2023
Top Tools for Your Cloud Data Security Stack in 2023
Cloud Computing

Stay Connected

1.2k Followers Like
33.7k Followers Follow
222 Followers Pin

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

[mc4wp_form id=”1616″]

You Might also Like

big data improves
Big DataJobsKnowledge ManagementUncategorized

3 Ways Big Data Improves Leadership Within Companies

6 Min Read
Image
Uncategorized

IT Is Not Analytics. Here’s Why.

7 Min Read

Romney Invokes Analytics in Rebuke of Trump

4 Min Read

WEF Davos 2016: Top 100 CEO bloggers

14 Min Read

SmartData Collective is one of the largest & trusted community covering technical content about Big Data, BI, Cloud, Analytics, Artificial Intelligence, IoT & more.

ai in ecommerce
Artificial Intelligence for eCommerce: A Closer Look
Artificial Intelligence
AI and chatbots
Chatbots and SEO: How Can Chatbots Improve Your SEO Ranking?
Artificial Intelligence Chatbots Exclusive

Quick Link

  • About
  • Contact
  • Privacy
Follow US

© 2008-23 SmartData Collective. All Rights Reserved.

Removed from reading list

Undo
Go to mobile version
Welcome Back!

Sign in to your account

Lost your password?