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Moreover, the data can be outdated or even inaccurate, especially if you’re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
Product
profitability models
Benefits of Business Intelligence in the Insurance
Industry
Business
Intelligence has a wider adoption rate across the globe by businesses. Almost
every industry and business function reaped the benefits of it and hence the
same with the insurance industry. Companies that use BI service applications
and tools have many advantages over those that don’t, including:
Combat
Fraud
Build
Efficiency into Claims Management
Identify
dark and hidden opportunities
Better
Enablement of Sales teams
Summary:
Having
access to business
intelligence and analytics is crucial for any insurance company craving to
succeed in this highly competitive industry. The ability to turn large volumes
of raw data into actionable insights showcases a significant value proposition
for these businesses. These insights can be invaluable in terms of the endless
opportunities they can unearth across the business.
About Saxon:
It all
comes back to good data. We’ve got you covered for any data project across
verticals. Our comprehensive business intelligence consulting services
inclusive of Power BI solutions, Data Visualization, Dashboard Design &
Development along DBA support services can help.
Our
experts help you to discover how to unlock the true potential of the data and
let you take the next step in choosing the right tool and technology for any of
your data applications.
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