Of late, there have been significant investments aimed at fostering investment into the insurance companies. However, these companies have still not got the right results in terms of growth, perhaps because of the underlying issues with their approach to data. So, what are these issues and what should be done about them?
Business intelligence could transform the insurance industry. When you hear of business intelligence, you might often tend to think about product-centric businesses. Well, what you should know is that the benefits of business intelligence are not just for product-centric businesses but rather they can be realized by insurance companies. After all, every business, be it product-centric or service-centric, has the goals of increasing sales, reducing costs, and boosting profitability.
Gaining access to business intelligence and analytics as well as external data and knowledge is what insurers need to succeed in the competitive market. The ability to synthesize large volumes of raw data into relevant information and insights is a sign of a great value proposition for these businesses. The insights have limitless benefits in terms of the opportunities they can unearth for the business. Whether it is in policy sales, regulatory compliance, risk appraisal, claims management, business intelligence through data insights can open up wealth opportunities. So, what are the challenges of business intelligence for insurance companies? The challenge is not with the data itself. The problem is with where the data is stored- how easy it is to retrieve it and how safe it is.
IoT adoption could change the relationship with shareholders and reduce losses.
IoT enables insurance companies to offer a value-added service. These services result in better collaboration with policyholders and at the same time help in creating new revenues. How? IoT is the source of new rich data that not only helps in performing accurate assessment but also in monitoring price risk. For insurance companies, IoT powers automated loss notifications based on sensor data. Insurers will only experience these full benefits of IoT if they address the following problems:
– Management of data
It is the nature of insurance companies to be data-centric. Traditionally, insurance companies used historical data from billing systems, policy administration solutions, and claim management applications. Currently, large data sets form information of technology (IoT) sources that have created new dimensions. The issue is that insurance companies are not able to exercise this blast of data in good time and so they are not able to make the correct business decisions.
To solve the problem emerging from large data volumes, insurance companies will require a venture strategy in data management. This strategy will help these companies merge traditional data with IoT sourced data. As a result, there will be unified solutions, methodologies, tools, and workflows for organizing IoT data as this is the vital thing for the companies.
– Data fraud and security
Due to IoT popularity, its prospective for fraud and cyber-attacks are increasing at a faster rate. The huge amounts of data flowing into insurance companies are vulnerable to interception. Some of the IoT products used by insurers have led to fraud claims and new types of applications.
The solution to the data challenge is probably that of data security and fraud protection. Also, insurance companies will need to be sharp when calculating the premiums of the policyholders to avoid any fraud claim. Insurance companies will need to invest heavily into this issue to realize the full prospect of IoT for insurance. It’s no doubt that this is a challenging task, but it must be considered a priority.
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Getting your company to look innovative is that easy. I believe these strategies will help your company grow to the next level. Just be smart!