Benefits of Business Intelligence in the Insurance Industry
BI Facilitates Predictive Modelling 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 Moreover, the data can be outdated or even inaccurate, especially if you’re basing predictions on self-reported customer surveys.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 Prod