7 Hot Insurance BI Projects
November 13, 2015 3:00 AM
Seven in 10 insurers are "planning major enhancements or replacement to their business intelligence/analytics capabilities, according to Novarica's latest Business & Technology Trends report, which takes a look at business intelligence products across the insurance industry. Following are the most popular cited projects in the report, which covers personal and commercial P&C lines, specialty and worker's compensation, as well as life and annuity products for the individual and group markets:
1. Leveraging third-party data. This includes traditional sources like credit score, but also items like social media score, that are offered by data services and tools that allow data pooling. The trend is seen in personal & commercial P&C lines, as well as group benefits.
2. Implementation of tools and reporting capabilities to help end users understand data better. This is seen in personal, commercial, and specialty P&C lines.
3. More robust predictive modeling tools, which are being explored in personal and commercial P&C, as well as worker's compensation lines. Predictive modeling is most popular in underwriting, according to Novarica.
4. Building a culture that encourages use of the data more prominently in decision-making. This was seen in specialty lines, who "tend to be less advanced in using analytics for marketing, underwriting, or claims," Novarica writes.
5. Using data to get a closer look at distribution channel or individual producer effectiveness. This is popular in the life and annuities and group benefits lines.
6. Improving data management infrastructure, including data warehouses, operational data stores, and data marts. Found in worker's compensation and specialty P&C.
7. Finally, the life and annuities companies, both in the individual and group markets, said they were investing in tools that allow them to quickly and easily access data they need to report to regulators.