Decision Making
Risks
Big data has become integral to providing solutions to the insurance industry’s long standing challenges. At the heart of the industry, underwriters evaluate the risks of insuring a particular person and set a premium for the policy accordingly. The use of financial data, actuarial data, claims data and risk data covers virtually every important decision an insurance company makes. To create a competitive advantage and succeed in that dynamic environment, insurers must leverage the value of big data. As underwriting continues to drive insurance pricing, big data and analytics have also had profound effects on customer insights, claims management and risk management. To help meet compliance changes and cut costs, algorithms based on big data can meet increasing regulatory demands. By dynamically monitoring and adhering to compliance, organizations can improve decision making and minimize losses.
Improvements
Big data opens new horizons for insurers and is transforming the insurance industry, presenting difficult management challenges but also rich opportunities to reduce risk, optimise pricing and customise services. Insurers have always depended on gaining extensive knowledge of statistics. Successful companies will be better able to streamline claims operations and detect fraud. Most importantly, more detailed consumer profiles will help companies fend off competition by improving customer targeting and service.