5 Big Changes in the Insurance Industry Thanks to Advanced Insurance Analytics
Every time you sign up a new client for insurance, your bottom line gets bigger. But so does your data collection.
The truth is, large amounts of an insurance company’s data today are kept in siloed computer systems. That means underwriters have a hard time communicating important data to brokers and agents.
On top of this, insurance agents cannot share this information across multiple offices very easily.
The good news? As an insurance industry player, you’re in the middle of a massive data analytics–fueled revolution.
And thanks to advances in insurance analytics software, more and more insurance companies are using data analytics.
Here’s a rundown on five ways analytics has changed the industry.
Let’s get started!
1. Insurance Analytics Can Support Increased Client Focus
The insurance industry is increasingly focused on being more customer centered. That means insurance brokers are trying harder to help clients to get the types of insurance they truly need.
Fortunately, data analytics has the potential to fulfill this role.
Today’s intelligent management platforms in the insurance industry are making it easier for agents to gain actionable insights from customer data.
For instance, if clients develop gaps in their coverage, your insurance company will be alerted.
As a result, you can help these clients to get the coverage they need. This beats cold-calling other clients who may not need certain types of coverage right now.
2. Better Pricing
With data analytics, insurance companies can also extract helpful information for tracking individual policyholders’ behaviors and then price their policies accordingly.
For instance, after your insurance company tracks a policyholder’s driving habits over time, you can reprice their policy premiums so that this policyholder will pay a just premium for insurance coverage.
3. Fraud Prevention
Fraudulent claims are on the rise. But data analytics can help to put an end to this by showing you who could commit fraud before they ever do.
As an example, agents can monitor real-time data from social media, with the help of data analytics, to determine if policyholders might be taking part in fraud.
After all, some policyholders may file claims for problems at their homes, while their Facebook photos paint completely different stories.
Another major benefit of insurance analytics software is that it allows insurance customers to manage their own insurance policies.
This means that insurers can eliminate the underwriting process traditionally used in the medical insurance space, for example.
In the end, data analytics can make underwriting more streamlined and thus lead to quicker policy issue times.
5. Internal Processes
Finally, data analytics is enabling insurance companies to accurately pinpoint which insurance lines were the most profitable during a set period of time.
This is golden, as insurance companies can use this information to tweak their sales practices and eliminate wasted time with their policyholders. All of this can improve their profits in the end.
How We Can Help
In addition to highlighting the benefits of insurance analytics, we offer the latest information about other types of software on the market today.
For instance, we highlight the top team collaboration software around, as well as the leading top payroll system software.
Take a peek here to find out more about how today’s software can add value to your business and thus increase your bottom line in the months ahead.