The insurance industry handles vast amounts of raw data and documents comprising customer information, product details and pricing information, underwriting practices and much more. Rising competition, stricter regulatory and privacy policies, and evolving customer trends is driving digitization in the insurance industry. Document scanning, conversion and data entry services play a key role in this digital transformation which can streamline information management and allows it to be shared and analyzed. More and more insurance companies are adopting data analytics to stay competitive and achieve their long-term goals. When insurance analytics are implemented to their fullest potential, it can transform the insurance industry by providing significant improvements in decision-making, business intelligence, customer conversion, and so on.
According to research from McKinsey, data-driven organizations are 23 times more likely to acquire customers than their peers. As it is a data-driven industry, insurance companies will face new competition every day and converting collected data into useful insights can make it useful. McKinsey also reports that 86% of insurance companies are working on Insurance data analytics mechanisms for optimum predictions of big data reports.
The main benefits of data analytics in the insurance industry are as follows:
- Increases Lead Generation: Data analytics-enabled tools like CRM and agency management systems enable businesses to understand customer behavior and allow the marketing department to target the right messages for warming up leads. It also helps to mine valuable insights from reports that reveal the customer journey, right from search to conversion.
- Improved Customer Satisfaction: Customer satisfaction is one of the greatest initiatives of support, referral marketing, and brand identity creation. With data analytics, an insurance company can fulfil customer expectations as it can correctly predict the needs of prospective customers by looking through data trends. By capturing prospective clients’ feedback digitally, storing it, and providing actionable insights on their behavior and lifestyle habits, digital analytics improve sales prospects.
- Improvements in Fraud Detection and Risk Identification: With the help of actionable data intelligence in data analytics, insurance companies can now reduce the risk of fraud to a considerable extent. By identifying potential issues, data analytics makes insurers proactive and pushes them to implement fraud prevention measures.
Also, with apt data management techniques, insurance companies can conduct customers’ information verification and can create various risk classes based on that data. They can even upload social media information and criminal records – if any – which in turn can give you insights and clear identification of high, moderate, and lower risk profiles.
- Insurance Products Analysis at a Deeper Level: Data analytics allows insurance companies to evaluate individual insurance products at a deeper level. It enables checking product updates in real-time, claims, and other related details as well as analysis of product performance and profit by distribution channels, geographic regions, customer segments, and other factors.
- Process Automation: Automating data entry services, compliance checks, and repetitive tasks helps the industry optimize operational processes. Insurance companies are also deploying technologies such as RPA to automate and improve back-office and customer-facing services.
Emerging Leaders of the insurance industry are leveraging insurance data analytics. New-gen technology enables insurance companies to portray analytical decision-making in all their internal processes and business transactions. It helps to work progressively for deploying prescriptive methods of procuring deep insights from the big data in various insurance-related transactions like underwriting, claims management, customer satisfaction, and policy administration to ensure better predictive analysis, all of which drives competitive advantage. It also increases revenue per customer and agent, improves overall performance, eliminates time-consuming tasks and facilitates changing sales techniques according to the data inspection results. Effective data analytics creates data-driven investment strategies and capital management tactics to make informed decisions.
To reap the full range of benefits of data analytics, insurance companies should devise an enterprise-level strategy to implement the technology in a way that offers more than just an improved customer experience. Outsourced data conversion services can make data ready for analysis.