Firms
in the insurance industry maintain vast amounts of customer data.
Nevertheless, in order to develop new products and services to meet customers’
needs, they must convert this raw data into actionable intelligence.
Here are some ways sophisticated analytics helps the
most aggressive players in this industry prosper:
- Analyze
claims to understand business trends that are otherwise difficult to
recognize
- Predict which customers
will buy new policies
- Arrive at better claim
estimates by analyzing data across geographies and customer segments
- Spot high-risk
customer-behavior patterns early, and alter premiums to reflect risk
- Detect fraud and abusive
practices by identifying variations in billing practices or above
normal payoffs along factors such as geographical region, agent, and
insured party
By
recognizing subtle patterns within data, sophisticated analytics allows
firms to predict customers' behaviors and responses, as well as identify
fraud, delinquency, and noncompliance.
