How can Business Intelligence transform the insurance industry?
In recent years, there has been a huge amount of investment aimed at improving insurance business intelligence & analytics. Yet research from Gartner suggests that many insurance companies are still struggling to see the bigger picture as a result of underlying issues with their approach to data.
When we talk about business intelligence, we often focus on product-centric businesses. These are companies with real, tangible goods – and they often provide the best use case examples for the successful implementation of business intelligence solutions. With a physical product, it is easy to see how analytics can be used at every stage of the business –from production to supply chain to sales.
But the benefits of business intelligence are not limited to these product-centric businesses; they can be realised by any industry. After all, the majority of businesses share a similar set of objectives: to reduce costs, to increase sales and to boost profitability. As a result we are beginning to see examples from a much wider range of industries such as healthcare, hospitality and financial services.
One of the most interesting illustrations within this financial services category is the increasing importance of bi solutions for insurance companies.
Business intelligence for insurance
In such a highly competitive industry, insurance companies need better insights to be able to gain a more holistic view of enterprise performance. In order to increase efficiency and boost profitability it is critical for everyone in the business to make the optimal decisions and, in order to do this, they need the right data.
To improve the ROI of business intelligence, insurance companies need to provide the right information, to the right people, in a timely manner. This will allow employees to solve complex issues, react quickly to market trends and drive efficiencies throughout the business.
In an industry that is so incredibly unpredictable, business intelligence can make things that little more predictable by helping you understand changes in your business, and in the market.
Business intelligence for insurance: the challenges
The challenge for insurance companies is not with the data itself. Most insurance companies have collected hundreds, thousands or even millions of rows of granular data about every aspect of their business.
Large volumes of data surrounding factors such as policies, policyholders, risk assessments and claims histories will be stored somewhere in the business. However, that is the problem – this data is stored ‘somewhere’, meaning it is often difficult to locate, and even more difficult to extract.
Insurance companies often have data stored in a number of different systems ranging from ERPs and CRMs, to more specialist claims management software and risk management information systems. The challenge comes in collating information from this multitude of different sources and turning it into something from which the end user can actively derive insight.
Business Intelligence for insurance: use across the business
In order to exploit the benefits of business intelligence fully, it is important to open up access to these tools and promote usage across the insurance organisation. Whether it be in policy sales, risk appraisal, claims management or regulatory compliance, business intelligence can open up a wealth of opportunities.
Self- service business intelligence for insurance companies can be transformational in this respect, giving users across the business the ability to create and manage their own reports easily, without requiring a high level of technical expertise. These tools are designed to empower users, providing a robust reporting solution that is also user-friendly.
Insurance underwriters can gain greater visibility into policies, premiums and loss ratios…
Claims handlers can optimise the claims process, minimising losses and increasing customer satisfaction by speeding up the entire process…
Sales managers can better monitor the performance of their sales agents, highlighting areas of under performance and uncovering potential opportunities for upselling…
These are but a few of the many benefits that can be gained from effective business intelligence for insurance companies.
The value of business intelligence for insurance
Access to business intelligence and analytics is vital for any insurance company wanting to succeed in an increasingly competitive industry. The ability to turn large volumes of raw data into actionable insights represents a significant value proposition for these businesses. These insights can be priceless in terms of the limitless opportunities they can unearth across the business.
Ready to think about business intelligence for insurance? Download our free guide below to find out more about implementing a successful BI solution.