Business Intelligence for Insurance Companies
What does Business Intelligence (BI) exactly mean?
There are several different definitions you can discover, but commonly business intelligence means presenting relevant and reliable information to the right people at right time to help them make better and faster decisions. BI is a set of processes that collect, integrate, analyze and convert data into a visual format to get meaningful insights. Business intelligence is the combination of different techniques like predictive analytics, performance management, data mining, artificial intelligence, machine learning, and predictive modelling.
How BI helps the insurance industry?
BI helps with data collection and processing.
The insurance industry consists of lots of unprocessed information that needs to be converted into meaningful, reliable data. Insurance companies always demand different forms of data like customer data, marketing data, operational data, claims data, and many more. The insurance industry uses data to transform it into a complete business. It takes a lot of time to convert information into reliable data. BI helps the insurance business to divide data into a structural format and compiling it in sophisticated ways. BI works faster than a manual process like data collection, processing and data mining. BI saves lots of time and provides more accuracy in the data processing.
2. Business intelligence helps to make business decisions.
It is crucial to make a business decision by considering all management areas of the organization. The decisions like product modification, marketing, sales, finance, claim processing all are interdependent. For the decision-maker, understanding all the different data is time-consuming, tricky and complicated yet very crucial. The wrong decision directly impacts the business and can incurred loss instead of profit. Business intelligence support decision-makers by connecting all the managerial data and put them into a visual format. By the visual representation, BI highlights the key areas and speeds up the decision-making process.
3. Business intelligence helps with fraud identification.
The fraud in the insurance industry is not new. Unfortunately, the insurance industry gets impacted with around more than 80 billion-dollar loss per year in the US only, and more than 10% of business loss is because of fraudulent claims. Insurance frauds are constantly evolving their technique. Effective fraud prevention requires early detection of unusual activities. The fraud prevented at the initial level improve the insurance business performance and saves lots of money. Business Intelligence consists of different sets of technologies that analyze data at the initial level like policy application and fraud claim.
4. Business intelligence helps to find a profitable opportunity.
It is always fruitful for the insurance industry to optimize its business and find a new area for progress. It takes lots of research and investigation to find a unique growth opportunity. Business officials need to understand multiple aspects of the business to come up with the right decisions. To distinguish reliable decisions executive needs information that is sorted in a more clear format. BI helps decision-makers with data mining, analytics, machine learning, artificial intelligence, predictive analytics and many more. With the help of all these techniques, business officials can detect the new policy opportunity, marketing technique and sales technique.
5. Business intelligence improves marketing.
The insurance business always focuses on its effective marketing strategy as it influences its sales, profitability, brand recognition, customer reach and customer trust. A reliable marketing strategy is a combination of different processes and techniques to reach the consumer and convert them into target customers. To create a marketing strategy, the business needs to understand the current and future need of the customer. Detailed information about a customer and their demand is important for the marketing team. It takes a lot of research to collect all the information and generate a report that helps the decision-maker. Business intelligence helps to get real-time reports to support the marketing members. Business Intelligence helps insurance business understand their customer behaviour, the effect of advertisements, and insights about the customers.
6. Business intelligence helps to improve sales.
To improve sales, the business needs to understand customers and their needs. Business intelligence guide in identifying target customer and customers requirement. These help the sales team to communicate with the customers effectively. BI also shows real-time sales reports of the company to examine the firm performance. Business intelligence assists in the recognition of particular demand and understanding of the customers.
7. Business intelligence help underwriters.
Underwriters don’t need just the bulk of data, but they need intelligent data. Underwriters help to find the premium value for the policyholder and insurance provider. The underwriter collects and reviews the information about the customer collected from different resources. To use the information in a much better way and improve the accuracy, Business Intelligence helps underwriters with better data visualization and predictive modelling.