Game Changer For Property And Casualty Insurance industry
Analytic, in a very simple sense, is reading data like a story or novel where you get to the moral of the story through series of events. Keeping our bais aside and focusing on what market has to say through data gathering and many other techniques. In Insurance’s retrospect, Analytic does the same role as in the case of any other business which is to fine tune our business models to achieve our goals.
Analytic is emerging as game changer for Property and Casualty (P&C) insurance industry facing significant profitability and growth challenges. While basic reporting and descriptive analytic continue to be a must-have for insurers, advanced predictive and prescriptive analytic are enabling P&C insurers to build a sustainable competitive advantage.
When it comes to Insurance Analytic, Actuarial and underwriting analytics are helping insurers -in more accurate risk pricing, overall reserve estimates, and identification of key drivers behind changes in loss ratios.
Analytic solutions also help in understanding customer retention opportunities by comparing costs, risks, pricing, and variability. Claims analytic, by analyzing both structured and unstructured data, is cutting down decision-making time as well as reducing errors in decisions. P&C insurers report better visibility and predictability of losses and operating expenses as a result of leveraging claims analytic.
Improved decision-making insight in larger percentage of claims, and improved turnaround time leading to better compliance and customer satisfaction are some of the other benefits being enjoyed by them. Sophisticated fraud analytic solutions (such as text mining, social network analytic, loss-padding analytic, and geospatial analytic) are helping insurers cut costs, boost margins, increase customer satisfaction, and lower litigation costs.
What is insurance analytics?
This is a question that sometimes plagues the insurance industry, as most organizations are stuck in traditional processes where analytics isn’t given top priority. On the contrary, analytics plays a crucial role in insurance where computing technology and big data are separating the successful company’s from the ones that will inevitably die out.
Techniques that use advanced analytics are the leading methods to answer the type of customer sales, marketing and customer service questions asked by today’s leading companies.
While more data, better tools, and new applications are creating opportunity in the insurance industry, to adapt and thrive in this emerging world of advanced analytics, insurers need to manage complex and large-scale organizational change.
A great event to brush up on insurance analytics is the Insurance Analytics Summit put on by Insurance Nexus. My company was in attendance this year and learnt a lot about how vast the market is.