The application of data analytics is helping the insurance industry in many ways. The influx of information available these days makes it easier for insurers to segment policy holders and provide more customized products. Additionally, the Big Data trend has made it easier to process claims.
Thanks to Big Data, adjusters have access to more information than ever before. Some of that information is extremely helpful, while other bits of data are superfluous. There is so much data that no person has the ability to go through it all. That’s where the analytics come in.
Instant payout optimization
Often claims are fast-tracked. This saves time by settling the claims instantly. However, when a major event occurs, such as a tornado or flood, this leads to a large number of new claims in a short amount of time.
In these cases, fast-tracking claims can lead to overpaying. Data analytics can help in these situations. Using analytics allows insurers to optimize the claims process, maintaining savings while cutting out labor costs and time. Big Data analytics help insurers keep claims processing on the fast track, but by incorporating historical statistics it also helps them avoid overpaying.
Improved fraud identification
How can analytics help identify fraud? Typically, insurers use rules-based solutions to determine if a claim is false or not. In this day and age, con artists have become more sophisticated though, and they have ways of getting around these rules.
In fact, Stuart Rose of SAS noted that out of every 10 insurance claims, one is fraudulent. Using predictive analysis, insurers have a more accurate way of discovering fraud. Predictive analytics use a wide array of solutions to find the answer, including text mining, database searching, models and rules. With data analytics, insurers can find fraudulent claims sooner and more accurately.
More efficient products
With the insurance industry changing so rapidly, providers need to harness this data to provide new products to differentiate themselves from the competition. Insurers are expected to do more with less. According to the TIBCO blog, “Big Data offers insurers the ability to transform these processes and meet evolving regulatory requirements.” Big Data has been a game-changer for the insurance industry.
As the leading provider of web-based property valuation solutions, e2Value can assist you with all of your Insurance-to-Value (ITV) and collateral value monitoring needs. Whether you are looking for valuations for high-value homes, Mainstreet® homes, condos, co-ops, commercial properties, manufactured homes, log cabins, or farms and ranches, our patented estimator can quickly calculate the cost of replacing a residential, commercial or farm structure, and provide you with a fast, cost-effective and accurate replacement cost valuation.