How to gain a competitive advantage using Insurance Software and real-time analytics
In a constantly changing business environment, small to medium-sized insurance companies are finding that in order to remain competitive, real-time analytics must be employed on a greater basis than ever before.
The term “real-time analytics” refers to the practice of using data immediately upon its inception, and in order for its use to be maximized, it must be gathered and disseminated through the use of technology provided by experienced and knowledgeable insurance software companies.
While some analysts compare the use of data in real time to using a road map, others say that a better comparison may be that of a GPS because the information doesn’t just show the route from point A to B, but actually shows what has transpired during the journey. Seeing the unexpected bumps that have popped up in the road to the present time may help management to steer clear of similar bumps in the future.
For example, two of the major challenges that face small insurance companies are risk management and product pricing. Analyzing stale or static data does little to help a smaller insurance company keep pace with its competitors. It is for this reason that these smaller insurers are taking advantage of real-time data analysis capabilities now offered by insurance software companies for monitoring the ever-changing data stream of customer behavior, economic trends, market fluctuations and other factors to more effectively gauge risk as well as identify areas where product pricing may need to be modified.
In order to stay on the competitive edge, insurers must foster an environment where innovation can flourish. This means thinking outside of the traditional cubicle and involving staff members at all levels from all departments. It is also recommended to tap into the resources available at the underwriting level because the heart of the insurance business lies within its underwriting department.
Successful smaller insurance companies often take a team approach when looking to capture data in real-time and convert it into information that is meaningful. This includes the formation of teams that are constantly looking for new data sources, and then strategically coming up with innovative ways to use those new sources to the company’s advantage.
Insurance analytics is no longer a function relegated to the back office with stale data. Analytics in real time is now the cutting edge that can help smaller insurance companies achieve solid growth while meeting or exceeding their competitors’ performance.