With data continually being analyzed and reports being produced, here are three ways in which the outcomes can improve your business.
A recent study determined that a lack of technology investment was causing dissatisfaction among generation Y insurance customers. This generation prefers to use social media, online and mobile channels to interact with insurance agents, whereas older generations prefer to call agents directly. Offering a range of communication methods preferred by a range of customers, improves their overall experience.
Automation, and improved reporting and analytics can help insurers improve their claims processing efficiency. Automation ensures low risk claims are processed quickly and efficiently, although some claims will require more resources. The key is to determine which fields of a claim need significant attention.
For example, if a disability claim has been inputted into the system but a particular field, or necessary documentation is missing, an automated task may be generated to alert a claims administrator that the claim requires more attention. This allows management to allocate valuable resources where they are required.
Managing risk is the core of the insurance industry. The risk involved when insuring a particular person or demographic is not produced based on a single piece of information; data is statistically analyzed to allow an informed decision to be made. Analytics produce actuarial data, claims data, and risk data that covers every important decision an insurance company must make. An underwriter evaluates the risk involved to insure a particular person, and an insurance premium is set accordingly.
To mitigate risk further, insurers have begun using analytical software to detect fraudulent claims. Red flag indicators are used to highlight risky claims that can then be further examined. In a world where claim automation is improving the efficiency of claims processing, it is important to bring high-risk claims to the attention of administrators.
This article highlights three areas in which data analytics can help insurers improve their business processes, but the list is endless. The more data that can be analyzed, the more valuable insights are produced, allowing underwriters and insurers to make more informed decisions.