Insurance big data is complex. Insurers handle swathes of valuable data, often too much to understand for the naked eye.
WaterStreet Company offers Business Intelligence for insurers to manage their big data. The solution brings insurance data together across silos of the business, offering advanced learnings to empower the company’s decision making within one unified solution.
What is Insurance Big Data?
Insurance Big Data consists of data sets that are too complex for people to review in a siloed method.
When a carrier gathers data across thousands of policyholders and over several years, it becomes too much to digest without advanced analytics. An insurer’s underwriters, accountants, agencies, and many other shareholders access this data throughout the policy lifecycle, making use of it according to each job function.
For carriers to make the most of their big data, they must have the ability to store the data in un-siloed ways. Gathering data within a single unified solution opens up new possibilities to analyze the data through reporting functions and to identify gaps in the data where third party providers can help offer context.
Insurance Big Data Uses
All carriers today gather big data, but not all put it to use at its full potential. Big data is the premise that your data has become too “big” to understand without the help of advanced features that combine all data into one manageable location.
1. Risk Assessment
Insurers leverage big data to assess risks associated with policyholders. By analyzing historical data, such as claims history, demographics, and geographic location, insurers can accurately predict potential risks and set premiums accordingly.
2. Fraud Detection
Big data plays a crucial role in detecting insurance fraud. Insurers analyze vast amounts of data to identify suspicious patterns or anomalies that may indicate fraudulent activities, such as exaggerated claims or false information.
3. Underwriting Automation
Big data analytics can automate the underwriting process, making it more efficient and accurate. By analyzing vast amounts of data in real-time, insurers can make faster and more informed underwriting decisions, reducing manual effort and improving risk assessment accuracy.
4. Personalized Pricing
Insurers use big data to offer personalized pricing based on individual risk profiles. By analyzing various factors, such as driving behavior for auto insurance or lifestyle choices for health insurance, insurers can offer customized pricing that reflects the unique risk profile of each policyholder.
5. Predictive Modeling
Big data enables insurers to build predictive models to forecast future events, such as claim frequency and severity. By analyzing historical data and identifying patterns, insurers can make more accurate predictions, allowing them to better manage risks and allocate resources effectively. Insurers have begun applying big data to catastrophe modeling to better understand the impact of catastrophic events on portfolios.
6. Regulatory Compliance
Insurers use big data analytics to ensure regulatory compliance. By analyzing vast amounts of data and monitoring changes in regulations, insurers can ensure that their operations and practices align with legal requirements, reducing the risk of fines or penalties.
7. Product Innovation
Big data can drive product innovation in the insurance industry. By analyzing market trends, customer preferences, and emerging risks, insurers can develop new products and services that better meet the evolving needs of their customers.
8. Customer Experience Enhancement
Insurers use big data to improve the overall customer experience. By analyzing customer feedback, interactions, and behavior, insurers can identify areas for improvement and personalize their services to meet customer expectations more effectively.
Insurance Big Data & WaterStreet
The WaterStreet Business Intelligence Platform improves management capabilities across the business through a collection of tools that work together to turn your data into clean, coherent, interactive visuals.
We know the challenges that carriers face in managing business because we come from the insurance industry.
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