Insurance industry, a leader in adoption of Data Analytics and Business Intelligence
Insurance industry has been a leader in using data analytics and Business Intelligence tools to solve various business problems. As per a Dresner Advisory Services study, it is the no.1 leader in adoption of BI applications.
One of the main reasons for this is the huge amount of data generated every minute in insurance companies e.g. market data, claims data, actuarial data, customer data etc. Hence efficient data handling and analysis tools are a necessity.
How Business Intelligence is helping Insurance Industry
Fraud is a major business challenge for Insurance industry and adds to cost for the insurance customer.
As per FBI’s website, the total cost of insurance fraud (non-health insurance) is estimated to be more than $40 billion per year. That means Insurance Fraud costs the average U.S. family between $400 and $700 per year in the form of increased premiums.
Predictive analytics capabilities offered by Business Intelligence tools help Insurance companies to detect and prevent frauds at early stage.
The most valuable user experience an insurer can provide to customers is fast and smooth claim settlement. Having all customer related data at one place helps to achieve it. Business intelligence tools provides the claim handler a consolidated view of customer’s data like past claims, open claims which helps in faster processing of claims.
Managing Internal Processes Efficiently
Every insurance policy requires many activities to be performed before it can be delivered to the customer. These activities need to be tracked and issues need to be addressed on a real time basis. Business intelligence solutions help to achieve this and raise flags on time. The managers can also analyse historical data and eliminate bottle necks.
Insurance sector is hugely competitive, so it is essential for the sales team to know which products, territories and persons need attention on a real time basis. This can be only achieved with the help of a business intelligence platform.
Which Business Intelligence solution to choose
There are various well established BI solutions available in the market. One should evaluate these on the basis of technical capability, ease of use and cost. As per Gartner, Microsoft has been a leader consistently in business intelligence space. Microsoft Power BI is a cloud based, self service BI platform with very powerful data transformation and analytics engine. It can connect to large number of data sources with free of cost native connectors.
Its desktop application is free of cost and can be downloaded here.
In case you want to see real life use cases and explore how Power BI can be effectively used to solve your business problems, feel free to contact Addend Analytics.