Big data is one of the core critical areas of the InsureTech industry. Hitherto unexplored and vaguely defined, data refers to all the details about different insurance claims and underwriting processes, notes, voice recordings, PDFs, and more that build up continuously during the lifetime of a legal process. Data has had an almost fringe benefit in the insurance sector thus far, more to maintain a record of procedures and actions, carefully filed away for future use if any. However, data has exceptional value – a fact only now revealed with new-age technology platforms like Charlee™ – that can disrupt the traditional insurance business model.
Innovations in any industry have thus far been introduced by way of technologically amplified processes and innovations in methodology. Exploring the previous ‘useless’ data has helped advance the business phenomenally in the insurance sector, giving us a tremendous advantage. The trick lies in analyzing this data using new technologies to make sense of it, obtain practical insights into customer needs to make better, targeted products for them, and help the business make purposeful decisions. While generic Machine Learning platforms have been doing their bit in such analysis, it is for the first time that unstructured data is used as a source of information, from which predictive analytical algorithms can glean relevant insights. This is throwing up even more profound insights that predict how a claim will proceed, where it will end, and what can be done to reduce spending and save time for insurers.
AI and data analytics reduce the manual hours spent on repetitive tasks, which pool plenty of people to do predictable work. Instead, it is now possible to build upon data to gain practical, far-reaching insights that offer more targeted products and make claims processes more efficient and less error-prone.