In the world of big-data, and now the Fourth Industrial Revolution, there is a saying: “If you are not the user, you are the product!” Insurance companies are in the business of risk management for a profit. Having the ability to categorize and foresee risk is key in sustaining profits and growing your book of business. In short, insurance companies are trying to understand how to enhance the claims process with product distribution channels, advanced analytics platforms, the Internet of Things (IoT), and emerging drone technologies. The key to solving these problems is to capture the relevant information needed for next generation analytics. Think of right data, right time, right person, right decision!
The claims process is a great area to discover customer behavior patterns, market trends and issues, and identifying limitations or weaknesses in policy coverages. The patterns identified and analyzed are essential for the development of the various insurance products. A customer centric claims process is where we begin to fast track genuine claims. Fast tracking a genuine claim for an efficient and prompt settlement will keep your customer happy with other positive results for your company. For example, the claims information gathered and analyzed can be used immediately for further coverage and risk analysis; coverage and product enhancements; and more accurate pricing models for your products. This gives your company an edge in the marketplace.
This methodology is called “dynamic modeling.” Dynamic modeling is the ability to leverage real-time comprehensive data to derive patterns which are of interest in other areas of your business, which helps in the insurer’s future growth and productivity. As the name suggests, dynamic modeling is high-powered, real-time and always presents a current representation of your data. This should not be confused with forecasting models which predicts possible future events based on present data.
The best place to start dynamic modeling is to identify and use all of your claims data, enrich the data with other forms of data, such as underwriting information, customer resource management information, and marketing information for your products. Bringing all of this information together and performing a meaningful analysis will deliver a true and accurate story about your business.
The story you build will enable your insurance business to bring the next generation customer into the connected information environment. Information will be exchanged across your business process (imagine the underwriting, claims, and marketing teams collaborating and operating more efficiently). It is this exchange of information which helps insurers and their customers experience an intelligent and dynamic claims process, and allows the insurers to lower their claims expenses.
Embrace next generation analytics and bring a better claims experience for your customers, and grow your book of business.