Retailers have moved to mobile apps, online shopping, and personalized offerings. Banks are going mobile with virtual check approval, online transfers, and real-time offers. All kinds of industries—manufacturing, government, energy—are going digital, cutting out paper and manual processes, being accessible 24/7, and making experiences more customer-centric. But what about insurance?
Insurance has always been an information-rich industry, but it’s not always been associated with digital efficiency. Today—thanks to a combination of technologies and increasing customer expectations—the sector has many opportunities for digital innovation. To capitalize on these opportunities, traditional insurers can bring real-time, data-driven capabilities to the forefront of operations, using their data advantage to outpace new insurtechs.
Key Features of the Data-driven Insurer
Traditional insurers can take advantage of many solutions to improve or eliminate legacy systems:
To compete in the digital era, insurers can automate more operations and processes. But they can’t automate what they can’t manage. Unmanaged data leads to missed digital opportunities and an inability to optimize operational costs.
To achieve data-driven automation, a data-centric architecture is needed where customer, policy, claim, and reference data is available, on-demand, and up to date.
AI and ML Supported Decision-making
Many insurers often limit artificial intelligence (AI) and machine learning (ML) to underwriting. Even then, these programs may use restrictive applications or require complex code. For the best user experience, AI and ML should be simple to support all business decision-making so all business users can access intelligence, no matter their technical background.
Additionally, AI and ML can help insurers reduce claims costs and identify fraud. Data analysis can assess any claim over time and may help in the pursuit of third parties who have a legal liability. In customer service, AI-driven chatbots can give advice to potential and existing policyholders, reducing the need for 24/7 personnel and giving customers assistance anywhere at any time.
Critical 360-degree Views
Without becoming data-driven, insurers cannot deliver effective real-time and predictive analytics. An overwhelming influx of data means insurers can make the right decisions only when they have all available data, both historical and real-time.
A 360-degree, enterprise-wide view of customer data lets insurers delight existing customers and efficiently add more. Increased revenue and customer acquisition are driven by more attractive policy options tailored to the individual. Full 360-degree views of internal processes enable insurers to gain enterprise-wide insights into operations, processes, and business lines. This can be achieved through APIs or through cloud migration.
Connected Data Governance
Unintegrated tools and inconsistent data lead to untrustworthy data. Without that trust, insurers cannot empower smart decision-making, nor ensure the best outcomes.
Data governance allows insurers to know where data comes from and to understand its lineage and quality. This enables insurers to use the right data with confidence. More importantly, data governance ensures the right data is available to the correct roles within an organization—promoting wider data use.To capitalize on opportunities for digital innovation, traditional insurers can bring real-time, data-driven capabilities to the forefront of operations, using their data advantage to outpace new insurtechs. Click To Tweet
Don’t Let Your Competition Race Ahead
For more hands-on information, join our LinkedIn Live event, where Microsoft and TIBCO will lead a conversation on the modern, data-driven insurer, and take the opportunity to engage with your industry peers as we look at the challenges, trends, and what it takes to become best in class.
Ready to launch your data-driven initiatives? Check out this blog from Microsoft detailing how intelligent tech is driving insurance or this whitepaper featuring data-driven strategies for traditional insurers.