Do I really mean survival? I do. There’s not a bit of exaggeration there.
I firmly believe—based on extensive qualitative and quantitative research and the many interviews and discussions I’ve conducted with insurance industry leaders—that analytics represent the industry’s best path to success and survival in a rapidly transforming world.
Certainly, virtually every insurance carrier is using analytics in one or more parts of the enterprise—but it is not nearly being used to its full potential. Very few carriers can honestly claim to have a data-conscious culture or say they are applying innovative modeling techniques.
What the industry needs now are well-defined strategies and tactics for immediate implementation to enhance the customer experience (including claims), increase accuracy in underwriting and pricing, optimize operations and boost profitability. Simply put, insurers need to immediately implement a meaningful and robust analytics strategy.
That is why we are holding the 3rd Annual Insurance Analytics USA Summit (March 14-15, Chicago), to provide insights into how to transform the way an organization uses analytics. The lessons from experts about how to prepare the organization for analytics success include:
- Become an analytics powerhouse: Gain executive buy-in for analytics implementation, build a team to use effective analytics to solve critical business challenges and create a culture of data-centricity throughout the organization.
- Keep all eyes on the customer: Develop a 360-degree view of the customer; integrate data from disparate sources across the organization to develop a more thorough view of the customer; glean insights for application through underwriting, pricing, marketing, claims, resource management and fighting fraud; design and deliver an exceptional customer experience; and effectively use segmentation and personalization to improve customer lifetime value.
- Effectively use new and external data: Drive actionable insights from the explosion of big data and new data sources, including telematics, social media and texts.
- Transform your product lines using analytics: Embed analytics throughout underwriting and pricing to optimize products and improve profitability at each stage of the value chain through accurate risk assessment.
