How Data Revolutionizes the Insurance Industry
Technological advancements have created digital information that we now know as data. Behemoths like Amazon, Facebook, & Google are utilizing this digital treasure to run their daily state-of-affairs and offer personalized products/services to their customers. The Insurance industry is adapting to this new mode of business.
Insurance companies have been utilizing data for many years, as actuaries are sometimes called the original data scientists. However, the data has stayed within the actuarial silo, unable to be articulated outside of it. The challenge insurers face today is bringing data from inside and outside of their organization together to give their customers more complete coverage and a better experience.
At Evvox, we’ve taken our 25 years of digitization experience in evolving businesses into data centric organizations and applied it to Evvox, a completely insurance focused solution. Many of the original “digital” pain points can now be leap-frogged, providing value to you much quicker and at a lower cost.
4 Ways Data is Being Leveraged in the Insurance Industry
To acquire customers
As the world changes, so do customer preferences. Companies that can adapt quickest get ahead. But how? Especially when your current systems and processes are focused on an older way of doing business? With technology focused on integrating your systems with the outside world.
Integrating third party data and organizing the data within your organization are key elements to acquiring new customers. The data provides a compass to the seas of a changing world, and can help your and your companies ships into the best possible locations. When your company knows where it is heading, and your customers know what to expect from you, everything else can get direction and the motivation to achieve consistent growth.
This new strategy paradigm does not require extensive replacement of technology, just a few additions in a structured way.
To retain policyholders
Customer acquisition is only part of the game, what defines the success of any business is high customer retention. Data analytics in insurance industry can help retain customers too. How?
The AI & ML-driven algorithms analyze the gathered data to predict whether the policyholder is satisfied with services or if he/she is planning on parting ways. This can be done through signals and touchpoints – or through offering new and improved services that fulfill their needs better.
By incorporating smart technologies to gather and analyze valuable customer insights, insurers can assess their performance, gauge customer needs, check any system issues, and fix them before they harm your business.
To minimize costs
Among many benefits of Evvox integration, cost-minimization is the most important to any organization. The incorporation of technology in the insurance industry streamlines data ingestion, makes marketing campaigns efficient, and serves this data to the right people in your organization.
This elimination of silos and time gained from efficient communication leads to cost reductions. Additionally, in today’s tight labor market, a data partner can vastly increase your time to market and allow your current staff the time and cycles to attack other important tasks within your organization.
To assess risks
Insurers run their business around risk anticipation & diversification. They target & categorize potential customers into varying risk classes by analyzing their personal information.
Data analytics in the insurance industry allows insurers to assess risks efficiently and quickly. Instead of generalizing the population based on certain characteristics due to lack of data, insurance companies can utilize predictive analysis to gather information and categorize potential customers in a relevant risk class.
Insurance companies are increasingly adopting new data technologies to increase business efficiency and service quality. Stats suggest that the adoption of data-driven insurance technologies translates into the availability of better services (more than 30%), cost-reduction (40 – 70%), & better detection of fraudulent activities (60%). Benefiting both the insurers and the policyholders. These benefits are and will be critical to the competitiveness of any insurer, and investing in your technology today will payoff greatly in the future.
Looking to strengthen your presence in the insurance industry and scale up your business, get in touch with Evvox.