Advanced business analytics helps the insurance sector by improving revenue visibility. Analytics is being given a great impetus with the advent of new data sources, tools, techniques and technologies across industries. Advanced business analytics tools and techniques are now in a position to use structured and unstructured data from various internal and external sources in real time/near real time, process large amounts of this data and direct action on customers. This is driving better and more personalized customer experiences across industry sectors.
In insurance, business analytics can be used in general insurance as well as life insurance across the lifecycle of the products and the customer. Right from targeting the right products to the right customers, being able to increase persistence on the policies, early claim prediction, fast tracking claims and automating processes for claims management specifically where analytics can be used. Insurance companies are using analytics to manage some of their internal processes like sales performance and reducing frontline sales attrition through analytics driven right profile identification at recruitment.
How has been the adoption of advanced analytics in the insurance sector in India?
There has been a steady increase in the adoption of business analytics across the insurance sector in India, both across life and general insurance. Business analytics has been used in improving/enhancing customer experiences, targeting the right customers with the right products using tools like cross sell propensity models, customer retention analytics and customer management using customer lifetime value models.
Analytics is also being used in business process improvement to track and enhance sales productivity, creating robust performance management dashboards, forecasting sales and renewals for improved revenue visibility and forecasting demand at call centres to improve operational efficiency. Digital marketing analytics is being undertaken to track digital asset adoption and measurement of its effectiveness. Business analytics is also being used to strengthen risk management by embedding analytics in internal audit and estimating the risk of early claims etc.
4 Benefits of Insurance Business Analytics
Fraud runs rampant in the insurance industry. It’s an unfortunate reality, to be sure, but a reality nonetheless, and insurance companies must take precautions to mitigate potential fraud.
Fraud doesn’t just affect insurance companies — it takes a toll on insurance payers, as well. The cost of fraud can be exponential: As insurance companies lose revenue due to fraud, they often raise insurance premiums and rates to recoup costs, which results in a negative customer experience.
The good news is that insurance business analytics software offers the ability to combat fraud in all its forms, from inflating actual claims to falsifying information on application forms.
Build Efficiency Into Claims Management
There’s nothing more frustrating to an insurance customer than a long, drawn-out claims process — and it’s easy to understand why: For most customers, that claim represents much-needed compensation for what could be a traumatic event, such as a car crash, property damage, or surgical procedure. An efficient claims process is crucial to the success of any insurance company as it increases customer satisfaction as well as minimizes loss. Insurance business analytics solutions provide claims handlers with a holistic view of key business processes and performance, including open claims. Handlers can use this capability to review customers’ prior claims and other essential information and to deliver more expedient service, as well as a highly personalized customer experience.
Identify Profitable Opportunities
It is this time when the Insurance companies will need to look out for ways to maximize their earnings. In order to do so, executives need to be able to view all parts of the business from a centralized location and in a convenient format.
As mentioned earlier, business analytics software uses data analytics to create detailed visualizations, from which users can derive actionable insights. In addition to detecting fraud, insurance companies can use this capability to monitor market trends to make more strategic business decisions. The data analytics metrics helps companies to monitor the performance of the various agencies that they partner with, as well as products within their own catalog and find where opportunities for future scope of increased profit.
Better Enable Your Sales Team
Tasked with managing a large catalog of insurance products, often spread out across the globe, insurance company sales teams have the deck stacked against them. In order to consistently meet — and exceed — their team’s quarterly goals, sales managers must closely monitor the performance of each sales representative, product, and territory to determine whether they’re meeting expectations.
The digital business analytics solutions for insurance companies provide real-time reporting and offer detailed visualizations depicting individual product and agency performance, so sales managers and representatives can easily find which areas of the business are performing well and which ones need attention, as well as determine potential growth opportunities.
How is AdWISE Assure helping insurance companies in India with its offerings?
We work with multiple insurance companies in India. We have delivered analytics projects across underwriting, cross sell, customer management, distribution, digital, planning, claims and risk functions where we have leveraged machine learning based predictive algorithms and interactive visualizations for process improvement. We work with these organizations to deliver specific projects, build out their analytical capabilities in the center of excellence build model and help them with their data organization, data governance and data quality area as well. We provide end to end services in analytics from data engineering to advanced analytical modelling, implementation and tracking of various analytical initiatives to drive adoption of analytics in the insurance industry.
AdWISE Assure uses business analytics to improve distribution channel productivity, enhances marketing campaign effectiveness, lapse reduction, claims loss reduction, increases underwriting effectiveness, enhances operational efficiencies and so on.