Same as other businesses, insurance institutions must seek ways to improve their profits. Hence, executives must be competent to consider all elements of the business from a focused location and in a convenient format.
Fremont, CA: Insurance businesses are sitting on a real goldmine of data, possibly the digital age's most useful currency. Insurance companies are assailed with data on a near-daily ground, involving market data, claims data, customer data, actuarial data, etc. While numerous companies in other industries are still resolving how to drag value from data, the insurance industry has uncovered that business intelligence is important to learn its full possibility.
Advantages of Insurance Business Intelligence:
Fighting Opposing Insurance Fraud
In the insurance industry, fraud is awash. For certain, it is a depressing reality, but it is reality, and insurance businesses should take safeguards to lessen possible fraud.
As the Coalition Against Insurance Fraud reported, the overall cost of insurance fraud in the US is over $80 billion annually. And fraud impacts beyond just insurance companies; it also impacts insurance payers. Fraud can have a differential cost: When insurance companies fail revenue due to fraud, they often increase insurance premiums and rates to recover their losses, bringing on an adverse customer experience. Based on the Federal Bureau of Investigation, insurance fraud costs the average American family around $400 and $700 yearly in raised premiums.
Determining Lucrative Opportunities
Like any other business, insurance companies must seek ways to increase their profits. Thus, executives must be able to consider all facets of the business from a focused location and in a user-friendly format.
As stated earlier, business intelligence software utilizes data analytics to yield detailed visualizations from which users can generate actionable insights. Insurance companies can employ this capability to observe market trends, make more tactical business decisions, and witness fraud. These visualizations also permit businesses to track the performance of the different agencies with which they cooperate and the products in their catalog and decide where a little extra time and concentration could cause improved profit.
