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How Sentiment Analysis Can Drive Insurance Industry
AI & MI Automation Big Data Data Analysis InsurTech

How Sentiment Analysis Can Drive Insurance Industry

By Dipak Singh July 11, 2022 - 52 views

Sentiment analysis in insurance is emerging as a potent tool for companies in multifarious ways. Insurance companies have tons of unstructured information that they have at hand. 

Following a suitable sentiment analytics process may help insurers enhance retention of policyholders and also in the identification of opportunities pertaining to up-selling and cross-selling.

Sentiment analytics have already turned into a vital aspect of strategies pertaining to customer feedback for companies of diverse sizes. Sentiment analytics in insurance fuse Machine Learning (ML) and Natural Language Processing (NLP) along with deep-text analytics for illuminating intrinsic nuances of texts. 

Sentiments can be translated more easily and analyzed seamlessly than expressions. The sentiment analytics process is also known as opinion mining

Customer data is unstructured and comes in several forms including claim data, voice messages, surveys, emails, social media posts. The entire system is tailored not only to analyze feedback and its nature, but also to put it against the right context.

Benefits of Sentiment Analytics

Insurers can reap multiple benefits from suitable sentiment analysis procedures. Here’s looking at some of them:

1. Detecting Fraud

Reports indicate how insurers lose millions annually on account of fraud. These are estimated at anywhere around 5-10% of total compensation payouts by insurers in a year at least. 

These are claims that flew under the radar. However, predictive analytics and other tools can help detect the same. A sentimental analysis dataset will help insurance companies track and assess insurance settlement and claim patterns. 

It will help in quicker decision-making on the basis of crucial parameters or key performance indicators. This will help in arresting fraudulent claims and enhance the insurer’s earnings. 

Text analytics also enables better decision-making through dashboards and access to other necessary data.

2. Customer Understanding 

Social media sentiment analysis will help in the classification and identification of customer interactions on the basis of parameters like the services/products being provided, the marketing platforms or channels that are used, the operations in place and so on. 

What sentiment analysis does is help insurers understand the voices of their customers. 

It fosters superior customer understanding above everything else. Social media datasets will help in the identification of specific aspects concerning any product, process, or service. 

Whenever this analysis is implemented for social media comments, it helps in clearly delineating trends in the industry and perceptions of companies along with enabling timely alerts on any reputation related issues as well.

3. Managing Claims

The analysis of complaints and claims is another natural segment for using such datasets. Complaints may be automatically identified and classified on the basis of the service, product and other parameters. 

This enables passing them onto suitable agents/departments in order to ensure swift action on the same.

Relating those to real world

Sentiment analysis in insurance reduces costs, combats fraudulent claims, helps insurance companies understand patterns, trends and customer preferences, and also lowers overall workload and the time taken to respond to customer issues. 

Simultaneously, social media sentiment analysis helps in enhancing satisfaction levels of both employees and clients, while enhancing client retention, brand-building, recommendations. 

It also goes a long way towards lowering indirect expenditure.

Sentiment analytics can help insurance companies keep leveraging unstructured information for identification of revenue-enhancing opportunities and industry/customer trends. 

Although analytics is not perfect as of yet, it is continually evolving towards the same. In this case, the sustained focus on a specific domain (insurance) can help in enhancing the overall accuracy levels as well.

Indus Net Technologies offers an array of solutions tailored towards the needs of insurance companies and the industry at large, right from cutting-edge analytics and other technological tools to back-end automation, risk profiling, customizable analytics, and modernization of legacy applications. 

Having worked on diverse task requirements for insurers over the years, INT has the ability to tailor industry and company-specific solutions that harness the power of data, free up company resources, and ultimately boost company revenues and growth alike.

About the authorDipak Singh is a thought leader and data cruncher, currently, he heads the Analytics Wings at INT. To know more do check out his LinkedIn profile here.