On a day-to-day basis, insurance organizations, even small organizations, handle large amounts of operational data. This data includes policy information, personal client data and customer relationship management data. Insurance software providers support the management of this data by fostering smooth workflows that increase agent productivity. But another level of data, analytical data, is gaining greater importance. Fortunately, the same software solutions that handle day-to-day operations are powerful enough to handle analytical data.
Here are a few ways analytics software can help your organization remain competitive.
Making Sense of External Data
Actuarial science is advancing beyond the scope of demographic information and historical patterns of risk. With the rise of big data and concurrent access to large swaths of information from a range of external sources, risk analysis now includes a range of client behaviors and geographic patterns. One example is the discovery that clients with higher credit scores tend to be safer drivers. Another would be the degree of risk certain geographies pose to health conditions.
Now smaller organizations can access external data sources with ease and apply that information to their risk assessments. Analysis of this data leads to greater predictive accuracy from which insurance providers can make smarter decisions that incur less risk.
Rise in Value
Analytics software increases revenue when business leaders examine areas in which their organization can grow or gain greater efficiency. This could be through increased sales, improved customer service or greater underwriting accuracy. Applying analytics software to sales can provide insights that help identify worthwhile leads. Underwriting services that make use of open-source data and multiple third-party sources hold the key to precise risk analysis.
While analytics software promises to increase value and streamline processes, its deployment does require changes in work habits. If your organization already has insurance management software in place, then the transition will be easier. Insurance software providers offer integrated, single platform systems that are tailored to existing organizational workflows while providing greater flexibility between departments.
The data collected through customer service agents become available to sales and marketing managers while relevant marketing and sales information can be accessed as needed by agents and policyholders. Likewise, this data is available for analysis alongside external data, all within the same system.
The rise of analytics software in risk and insurance dovetails with the rise of data management systems. Together, these tools increase value and provide small to mid-size providers with a competitive edge.