Insurance claim processing is a tedious job, at least from a conventional perspective. At the same time, customer experience is another pain point for most insurers, not just with regard to claims processing and other procedures, but also several accompanying aspects. The digital evolution and transformation of insurers have led to several positives, including higher accuracy, efficiency, and speed for almost every division.
Highly advanced predictive and data analytics enable insurance companies to take decisions driven majorly by data. AI has already empowered insurers with the necessary insights for discovering new opportunities, tackling threats, and ensuring better productivity at multiple levels. Data analytics has thoroughly transformed every aspect of the process, right from customer communication and engagement, to claims, applications, underwriting, and also pricing.
With proper data visualisation and analytics, underwriting procedures are automated and made more accurate by insurance companies. They thus identify customer risks through advanced predictive modelling and other tools. At the same time, this enables fixing premiums or pricing for at-risk customers based on prevailing guidelines and slabs of the insurance company.
The insurance industry has only scratched the surface of the vast analytics-driven possibilities for future progress and prosperity. Here is a closer look at how it enables improved claims processing and enhanced customer experiences in turn.
Data analytics can contribute greatly towards various aspects, right from fraud detection to smooth processing of claims. Here are some of them:
Hence, analytics can enhance the entire spectrum of processing claims and the whole customer journey/experience associated with it. AI can help in inferring claim possibilities including litigation, losses, fraud, and so on. Algorithms can also categorise or segment claims based on complexity and several important attributes.
AI can also support the optimal handling of claims in several cases. Hence, it is fast becoming imperative for insurance companies globally today.
Analytics solutions can help insurance companies identify fraudulent behaviour patterns and activities, narrow them down, and detect such transactions swiftly before or after completion. This helps insurance companies plug gaps and take swift action.
Analytics and big data have a huge role to play in enhancing customer experience through automated and timely communication, quicker processing of claims through automated verification and assessment, and also intelligent management of cases.
Insurance companies take several measures to safeguard data gathered from IoT devices. These include encryption of data and there are several types that companies may pick from. Insurers also emphasise proper data storage and governance under applicable regulations.
Analytics has a profound impact on pricing and premiums. It helps insurance companies estimate customer risks and then automate premium/pricing calculations accordingly. Data is analysed from several sources in order to gather insights on segment-wise risks and the best possible pricing for the same, keeping the policy type and other aspects in mind.