This article shows how insurers can maintain competitive edge using analytics to improve customer experience and customer choice.
One glaring fact I have noticed. The various departmental fiefdoms in large insurers do not talk to each other. Product marketing may use predictive analytics to create and market better products.
But Loss adjusters fail to use analytics platforms to automate and speed up claims processing, strip out costs and win customers that way.
Fraud and Risk Management do not analyse all the text based documents in the company combined with external data. They refer manual, labour-intensive investigation rather than applying analytics on structured & unstructured, internal & external data.
Some insurance companies are settling a significant percentage of claims within a day, and reducing fraud and stripping out cost. They see every claim and see every risk.
It has been proven that fraud detection applying big data analytics delivers equally good detection if not better, at a lower cost and faster.
Of course, traditional heads of department do not always want to hear that. And it requires the right kind of leader to apply disruptive technology without disruption
Competition from outsiders such as Google is causing insurers to take notice of the broader potential in advanced analytics. Insurers have all the data they need to improve the customer experience, and with the right data and tools at their disposal, they can obtain instant customer feedback the way a company like Uber does.