Within the insurance industry, the constant evolution of processes is driving growth and a need for improved tools. Underwriting practices have been growing in popularity and some firms are seeing a rise in claims fraud, increasing the need for high-end claims management software. These cases present opportunities to evolve by investing in powerful business analytics solutions and discovering the hidden potential that lies within these processes.
According to Voice & Data, the need for business analytics is being driven by three specific use cases: data trends, technology trends and business trends. Understanding these three areas and how they are affecting an insurance provider’s operations will allow that company to optimize it’s tools and workflow to it’s own unique needs and drive the largest ROI when implementing a business intelligence platform.
The right tech
Utilizing the right technology for business processes in general is becoming a critical consideration for every business in any industry. This is no less true for professional liability insurance providers, and in order to optimize workflow, the right IT infrastructure and analytical architecture are needed. According to the news source, this means finding a solution that increases a firm’s processing power- it’s ability to harness and utilize data faster.
Predictive analytics solutions offer the optimized balance between speed and power that helps providers use more data sooner in order to detect and eliminate fraudulent claims and other risks. Through this method of analytics, firms can optimize the foundation for data usage across the board and their overall BI strategy to reflect the current industry climate more accurately.
Evolving business strategies
When considering new analytics solutions, firms also have to take into account the evolution of their overall business strategies. No company remains the same forever, and for insurance providers, the key to constantly improving service and growing is to ensure that those strategies focus on providing stronger, faster service. A high-end business intelligence solution that helps identify and eliminate fraud sooner in underwriting and claims assessing processes will help firms achieve this goal swiftly.
Use more data
The big data trend is becoming increasingly frustrating for companies that haven’t already adopted the analytics strategies necessary to manage the volume and velocity of information. Predictive analytics will allow firms to organize, sort and use structured, unstructured and real-time data equally well. Optimally, an insurer will be able to incorporate this use in every aspect of operations, but ensuring that it’s benefits affect underwriting and claims management is key.
The big data trend is perhaps the most essential for any insurer to consider when exploring predictive analytics opportunities. According to Claims Journal, the big data and analytics trends present the largest opportunities to gain a stronger position on claims fraud. By being able to examine and put data to use faster and more efficiently, providers are able to consolidate data points and gain real-time, accurate results rather than relying on “judgement-heavy” methodologies that require more time and effort.
Being able to catch fraudulent claims faster doesn’t just reduce the risk of loss for a firm- it optimizes overall customer service by ensuring that honest clients get more attention. Ultimately, this will provide increased returns, boosting ROI from analytics adoption.
These trends and the constant threat that claims fraud presents don’t just provide a firm reason to invest in predictive analytics-based business intelligence solutions. They provide a clear advantage that can be gained by being able to create more thorough reports, assess data faster and move on more efficiently in everyday operations for any provider.