For a long time, the insurance industry was quite conservative in keeping up with modern trends and technology; this is, however, changing. The widespread deployment of technology in the insurance industry today is not just a response to contemporary trends.
It is a matter of necessity in maintaining a competitive pace in the business. Big Data admittedly means a lot of different things for several people but is mostly synonymous with complex computer engineering fields and concepts.
Today, Big Data is no longer solely within the confines of technology. Big Data is increasingly finding their way as a derivative of business imperatives. Thanks to Big Data, you now can enjoy real-world solutions for long-standing business challenges like claims processing.
Insurers, business organisations, and individuals can benefit a lot from the analysis of claims data using lean systems. Managing claims analytics through big data applications helps the insurer answer critical issues, especially on claims consolidation.
That is, however, not an easy task as, traditionally, most of all, insurance-related information has existed as free text data. The failure to consistently pull relevant facts from millions of recorded texts makes efficient insurance claims analysis impossible.
The business value of optimised data
As insurers continue to digitise and collate their data, the business value of this data is increasingly becoming priceless. Well-organised and -structured insurance data is indispensable in creating robust prediction and analysis systems that can prevent fraud losses.
It also is critical for optimising expenses and placing people in categories of risk that are easier to manage strategically. Going forward claims analysis will be pivotal for insurance companies in deriving new risk-related insights.
Such possibilities will provide insurance organisations with new grounds to compete and encourage prudent behaviour for organisations in their culture of risk management.
Technology, the next frontier in insurance
Modern insurance companies require massive amounts of data to function effectively. In a typical day, an insurance company sorts, sifts and searches through tons of data that include from the claims management systems, adjusters’ handwritten notes, and the fraud list, among others.
The considerable amount of data presents challenges as well as opportunities for most insurance companies. Getting the most out of such vast amounts of data is the challenge that modern technology aims to solve for insurance companies.
Insurance companies handle and analyse several claims every single day. As a result, insurance adjusters and agents lack time to go through all the claims data and decisively determine each claim. A majority of all personal data within an insurers’ database is actionable and relevant for effective claims analytics and processing.
Unfortunately, this implies that the determination of most insurance claims follows experience, gut feeling, and data that is low lying. And, that is among the primary issues that Big Data provides lean solutions.
Leveraging information assets for productivity
Organisations that specialise in modern economies in which insurance providers play a huge role are increasingly becoming consumer empowered. As a result, insurance companies have now to leverage their information assets.
The adoption of big data and technology is reportedly increasing the ability of insurance providers to understand their products, consumers, competitors, and business channels.
Claims processing will remain one of the areas that big data will play a dominant advantage. The fraction of insurance companies’ budget for research and development dedicated to big data will continue to rise in the earnest endeavour to leverage information assets and increase productivity for insurance markets.