Business Intelligence has helped insurance companies to successfully face the challenge of strengthening the relationship with customers through a more personalized and transparent service.
In addition to this, they also face the supervision of regulatory bodies, in charge of preserving security and compliance with users. That is why they have begun to leverage new technologies to streamline tasks and be more efficient without leaving aside the rules. Generating greater possibilities of access and customization at reasonable costs, as never before possible.
Business Intelligence, has become one of the best allies for the insurance sector. It has made them rethink the business and evolve from reactivity to proactivity with anticipation, through the transformation of unstructured data into meaningful information.
In recent years, insurance companies have focused their efforts on building a new service model, based more on trying to avoid the problem than on solving it once it has started. Many have incorporated process intelligence models into their investment strategy to create well-structured concepts and integrated business intelligence solutions, transforming some of them into market leaders.
Ranking the different groups of insurers operating in the region by their performance and growth perspective, as well as their contribution and annual written premiums is fine. But the question is, which technologies have they implemented along with the adoption of Business Intelligence?
Without a doubt, these companies have found in emerging technologies the best option to achieve success. According to a study by Dresner Advisory Services, the industry is a leader in the adoption of business intelligence, with technologies such as Artificial Intelligence (AI), Blockchain, Smart Contracts and Chatbots in its different business areas.
It is said that many have made the decision to transform due to the Covid-19 situation, others because they know that although the future is uncertain in some ways, with new technologies the risk of failure is less likely. So what are the real reasons that have led them to this transformation? According to market studies, there are three.
Reasons for insurance company transformation with Business Intelligence
1. Changes in users’ mentality: each head is a different world. Everyone has their own way of thinking or reacting to unexpected events or occurrences.
2. Development of different economic models: search for efficiency in their models based on the analysis of credit, market and operating risks.
3. Need to ensure lifestyles and not just objects, as was traditionally the business: achieve interaction with users, know and analyze behaviors to provide them with personalized services.
Although the landscape is clear, the insurers that will lead the market in the near future will not only be those that are most open to change, but also those that are able to adapt to a change in culture.
Speaking of a projection of more or less five years, insurers that have a properly integrated Business Intelligence strategy will be able to make decisions based on real, intelligent data, in less time to customize their value bet. This will make them different, because they will be able to convert concrete values into information, and information into knowledge, in order to be able to offer:
- Greater clarity in operations, because users will have better coverage and a wide range of plan options to choose from
- Fluidity in client-insurer communication, because there will be agile and assertive answers in less time, which becomes a more dynamic interaction
- Versatility in procedures, because face-to-face procedures become less relevant
- Assertiveness in immediate solutions, especially when dealing with claims and accidents
- Improvement of customer service in general, since it is possible to provide customized answers according to the data analyzed.
- Higher claims prevention rates due to the analysis of current data and real-time metrics.
It is undeniable that by leveraging a business intelligence model, insurers enter into an evolutionary metamorphosis, not only because of the improvement in their services mentioned above, but also because it brings great benefits such as:
Fighting fraud with greater success
Fraud is a constant in the industry, an unfortunate reality, and precautions must be taken to mitigate it because its cost is exponential and results in a negative customer experience.
Effective fraud prevention requires early detection, and business intelligence uses predictive analytics, which combine artificial intelligence, machine learning, data mining and predictive modeling, to identify patterns that point to fraudulent activity.
Efficiency in claims handling
There is nothing more frustrating to an insurance customer than an extensive claims process. An efficient process is critical to the success of any insurance company because it increases customer satisfaction and minimizes losses.
Business Intelligence provides a holistic view of key business processes. This makes it easier to review past customer claims to provide a highly personalized customer experience.
Identify profitable opportunities
Constant monitoring of market trends and competitor performance to determine where to invest a little more attention and time to generate higher profits.
More effective sales teams
Monitor the performance of each sales rep, product and territory to determine if they are meeting growth expectations.
Real-time reports and detailed visualizations that describe performance, so leaders can easily determine which areas of the business are performing well and which need attention.
For 2022 and beyond, insurers have a big challenge to take full advantage of business intelligence models, technology and data to continue to drive growth and digital transformation. Data analysis, pattern identification, model building, hypothesis testing, and integration with a front-end solution projected profitability, expected risk mitigation, and advanced decision making depend on it.
While many companies in other industries are still figuring out how to derive value from data, others have discovered in business intelligence an opportunity to increase their potential.
If you are looking to empower your business through Business Intelligence and mitigate risks in your operation, our goal at Interfaz is to leverage data through surgical analysis that will give you clarity on the landscape of your customers’ movement and interests to make the best decisions at the most opportune time. Contact us.
Source: Deloitte | SAP | B&S Business and Strategies