How to Benefit from Insurance Business Intelligence

Insurance companies, like any other business, must look for ways to increase their profits. To do so, executives must be able to view all aspects of the business from a centralized location and in a user-friendly format

Fremont, CA: Insurance companies are sitting on a veritable goldmine of data, which is arguably the most valuable currency of the digital age. Insurance companies are bombarded with data on a near-daily basis, including market data, actuarial data, claims data, customer data, and so on. While many companies in other industries are still figuring out how to extract value from data, the insurance industry has found out that business intelligence is the key to realizing its full potential.

Benefits of Insurance Business Intelligence:

Fighting Against Insurance Fraud

In the insurance industry, fraud is rampant. To be sure, it is an unfortunate reality, but it is a reality, as well as insurance companies should take precautions to reduce potential fraud.

As per the Coalition Against Insurance Fraud, the total cost of insurance fraud in the US is evaluated to be over $80 billion per year. And fraud affects more than just insurance companies; it also affects insurance payers. Fraud can have an exponential cost: When insurance companies lose revenue because of fraud, they frequently raise insurance premiums and rates to recoup their losses, resulting in a negative customer experience. As per the Federal Bureau of Investigation, insurance fraud costs the average American family between $400 and $700 per year in increased premiums.

Identifying Lucrative Opportunities

Insurance companies, like any other business, must look for ways to increase their profits. To do so, executives must be able to view all aspects of the business from a centralized location and in a user-friendly format.

As previously stated, business intelligence software employs data analytics to generate detailed visualizations from which users can derive actionable insights. Insurance companies can utilize this capability to monitor market trends and make more strategic business decisions in addition to detecting fraud. These visualizations also allow businesses to track the performance of the various agencies with which they collaborate, as well as products in their own catalog, and determine where a little extra time and attention could lead to increased profit.