Apart from storing data and generating reports, some companies are using BI in more transformative ways. Predictive analysis is one of the most unique benefits, and it will likely become the new industry-wide standard in the next few years.
Machine-learning algorithms use past insurance claims to predict
customer behaviour and incidents of fraud. These predictive models are above
the actuarial models currently used throughout.
Insurance companies also must collect this data regularly to make the
best predictions. Moreover, the data can be outdated or even inaccurate,
especially if you’re basing predictions on self-reported customer surveys.
Artificial intelligence (AI) and machine-learning models generate
a specific predictive “score” for every claim. The more claims that an
algorithm is fed, the more accurate the scores become over time.
Insurance companies use this BI tool primarily for:
Underwriting risk
Financial projection
Product profitability models
business intelligence in insurance industry
Business Intelligence has a wider adoption rate across the globe
by businesses. Almost every industry and business function reaped the benefits
of it and hence the same with the insurance industry. Companies that use BI
service applications and tools have many advantages over those that don’t,
including:
Combat Fraud
Build Efficiency into Claims Management
Identify dark and hidden opportunities
Better Enablement of Sales teams
Summary:
Having access to business intelligence and analytics is crucial
for any insurance company craving to succeed in this highly competitive
industry. The ability to turn large volumes of raw data into actionable
insights showcases a significant value proposition for these businesses. These
insights can be invaluable in terms of the endless opportunities they can
unearth across the business.
About Saxon:
It all comes back to good data. We’ve got you covered for any data
project across verticals. Our comprehensive business intelligence
consulting services inclusive of Power BI solutions, Data Visualization,
Dashboard Design & Development along with DBA support services can help.
Our experts help you to discover how to unlock the true potential
of the data and let you take the next step in choosing the right tool and
technology for any of your data application.