The world in which we live is a volatile world, a fact that doesn’t bode well for the insurance industry whose greatest ally is “certainty”. Analytics, however, can somehow fill the gap. In this regard, BI reporting tools such as data visualization software are extremely useful.
Advanced analytics for insurance allows all stakeholders in the industry to identify new growth opportunities and risk factors as soon as they take shape. Insurance companies such as yours can benefit from analytics in two ways.
- Protect your enterprise.
- Optimize your business’s growth.
Three important things to remember
While you ponder on the importance of business analytics, be guided by the following:
- Insurers are under immense pressure. This is due to increased competition, regulatory interventions, disruption in the market, globalization, and natural perils. Data pertinent to these must be captured and used to identify possible countermeasures.
- The proliferation of data brought about by integration of life and technology presents huge opportunities for the industry. With the employment of analytics on data, the industry produces valuable information about competitors, risks, customers, and potential markets.
- Because of advanced analytics, it is easier now than in the past to identify new growth opportunities. Advanced analytics also empowers everyone to protect their business while optimizing profitability and competitiveness.
BI business intelligence: How Can an Insurance Dashboard Help?
About data analytics, insurance companies usually ask these three questions:
- What else can our own data reveal?
- If we add external data to our current models, what more can we learn from it?
- How can we integrate analytics into our daily decision-making?
Perhaps, the best answers to these questions can be glimpsed from the huge information that insurance dashboards can provide:
Customer satisfaction data
|Customer satisfaction levels are difficult to determine or measure. Your dashboard will show you real-time data on customer perception of your business and dealings with them.
Sales per broker analysis
|By broker analysis allows you to see which part of the business needs more attention.
Average cost per claim
|Data on the average cost per claim can change drastically. Knowing the trend ahead of time can give time to plan in order to maintain a good level of profitability.
|Data provided by the dashboard can tell you if there’s something fishy going on in your business. You can avert fraud before it takes form.
Average time of settlement
|Average time to settle claims is important not only to customers but you as well.
|Sales growth and sales growth percentage
|Are your sales data improving? In a quick glance, you can see it from the dashboard.
Net Income Ratio
|How good is your business in generating profit?
What’s the overall effect of this humungous set of data that the dashboard system can generate? Consider the following:
- Real-time data automates compliance reporting for meeting the needs of all stakeholders.
- The data will empower you to customize your services in accordance to the customer’s situation, preference, risk profile and behavior.
- The dashboard will show you to detect issues and opportunities early.
- It will help you identify hidden potentials with your business’s customer base.
- The data will also show you the employees, customers and brokers who give you value. You can then strategize your retention offers to these individuals.
- The system can also be beneficial if you are thinking to utilize social media. This is one way of knowing your customers more if you want to open new distribution channels.
- With the huge amounts of data for your analysis, you can have a better knowledge of risks your different business units’ face. This can give you insights on how to better distribute capital among jurisdictions.
In the industry that you belong to, you talk about risks most of the time. Customers come to you asking for assistance on something that they perceive as a threat.
From your side, you offer these customers cover, based on what you think is the right cost of covering claims. So, wouldn’t it be beneficial if there’s a system that can accurately assess risks?
This is where data analytics is useful. The proliferation of data is undoubtedly bringing in a big change in this industry. This change is positive, characterized by better customer service, reduced impact of fraud, efficient premium pricing, better retention decisions, and more efficient management of risks.