Transforming the Insurance Industry
1. Customised Offerings
Industries have woken to customer centricity and customised offerings, instead of the old adage that “father knows the best,” customers believe in a trusted consultant who can help them get the insurance plan suited to their needs. Data analytics algorithms can help brokers build customer loyalty by predicting customised plans suited to each individual customer. Intelligent insurance management platforms allow agents to utilize technology which offers them actionable insights based on previous insured customer data. Intelligent management platforms empowered with smart dashboards allow agents to get a 360 degree overview of each customer’s portfolio. The system automatically alerts if any of the customers have a gap in coverage to enable agents to offer more value added coverage.
2. Fraud Prevention
Insurance data provides actionable intelligence to predict potential customers who are most likely to commit insurance fraud before the event occurrence. Social media platforms provide a powerful medium to analyse and study if a potential policyholder might engage in a fraud. If a policy holder reports of an accident to seek a claim but is seen holidaying through his/her social media profiles, then this is a fraud which can be prevented by smart social media analytics.
3. Premium Pricing
Traditionally, to make statistical predictions of insurable events for an insurance product, companies have relied on “The Law of Large Numbers”. Through this principle, insurers are unable to predict individual accidents or incidents. This prediction may work for agents but might not be true for policyholders; an experienced driver might get stuck with a group of learning licence holders, increasing their probability of an accident and be charged the same premium for their policy. To stay in the competitive insurance market, businesses have to device actionable insights from data through predictive modelling to track individual policyholder behaviour and fix policies prices.
Data analysis algorithms allow insurers to maximize their revenues by:
•  Analysis of the profitability of policies offered
•  Fix policy premium pricing
•  Customised product offerings
•  Improve employee (agent) productivity
The need of the hour is to develop a cloud-based data-driven broker management platform aggregating, compiling and visualising all the data sources gathered from the policy holders to give businesses an access to a variety of reports to understand their customers in real-time .Data Analytics will be taking the insurance industry forward, and a positive change has just begun.
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