Insurance and big data company in 2018 . They weren ’ t using any of their telematics data for pricing : they were collecting all this data and not even using it .
Insurance and big data company in 2018 . They weren ’ t using any of their telematics data for pricing : they were collecting all this data and not even using it .
“ And that ’ s the challenge . There are huge amounts of data available , but you have to have a strategy of what you ’ re using that data for .”
With an avalanche of information , how insurers actually translate that data into action is key .
“ From an underwriting point of view within our platform , we ’ ve seen there is a vast amount of data ,” comments Elliott Green , Sales Director at Genasys . “ The challenge
According to The National Association of Insurance Commissioners ( NAIC ), insurers use big data in a number of ways , such as :
• Underwrite more accurately , price risk and incentivise risk reduction . Telematics , for example , allows insurers to collect real-time driver behaviour and usage data to provide premium discounts and usage-based insurance
• Enrich customer experience by quickly resolving service issues
• Improve marketing effectiveness by tailoring products to individual preferences
• Create operating efficiencies by streamlining the application process – an example of this being a pre-filled homeowner ’ s application
• Facilitate better claims processing by applying machine learning algorithms to outcomes
• Reduce fraud through better identification techniques – for example , text analytics can identify potential ‘ red flag ’ trends across adjusters ' reports
• Improve solvency through the ability to more accurately assess risk
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