Technological progress has given rise to digital information, now commonly referred to as data. Behemoths like Amazon, Facebook, and Google leverage this digital wealth to manage their daily operations and provide personalized products/services to their clientele. The Insurance industry is adapting to this new mode of business.
Insurance firms have been harnessing data for many years, with actuaries often called data science pioneers. The challenge insurers face today is integrating data from both within and outside their organization, previously confined within actuarial silos, to provide customers with more comprehensive coverage and enhanced experience.
At Evvox, we've leveraged our 25 years of experience in digital transformation, guiding businesses towards becoming data-centric organizations, and directed it towards Evvox a dedicated solution tailored specifically for the insurance sector. Many of the original “digital” pain points can now be leap-frogged, providing value to you much quicker and at a lower cost.
4 Ways Data is Being Leveraged in the Insurance Industry
To Acquire Customers
As the world evolves, customer preferences change accordingly, and companies that can swiftly adapt gain a competitive edge. But how can you achieve this, particularly when your existing systems and processes are geared towards outdated business practices. With technology dedicated to seamlessly integrating your systems with external sources, the integration of third-party data and internal data organization emerges as crucial components for acquiring new customers. The data provides a compass to the seas of a changing world and can help you and your companies ship into the best possible locations. When your company knows where it is heading, and your customers know what to expect from you, everything else can get direction and the motivation to achieve consistent growth.
This new strategic approach doesn't demand a wholesale overhaul of technology; rather, it necessitates a few structured additions.
To Retain Policy Holders
Customer acquisition is only part of the game, what defines the success of any business is high customer retention. Data analytics in the insurance industry aids in customer retention by utilizing AI & ML-driven algorithms to analyze gathered data, predicting policyholder satisfaction levels and identifying potential churn. This can be done through signals and touchpoints-or through offering new and improved services that fulfill their needs better.
By incorporating smart technologies to gather and analyze valuable customer insights, insurers can assess their performance, gauge customer needs, check any system issues, and fix them before they harm your business.
To Minimize Cost
Among the myriad advantages of Evvox integration, cost-minimization stands out as paramount for any organization, as it streamlines data ingestion, enhances marketing campaign efficiency, and ensures targeted data distribution within your organization.
This elimination of silos and time gained from efficient communication leads to cost reductions. Additionally, in today’s tight labor market, a data partner can vastly increase your time to market and allow your current staff the time and cycles to attack other important tasks within your organization.
To Assess Risks
Insurers run their business around risk anticipation & diversification. They target & categorize potential customers into varying risk classes by analyzing their personal information.
Data analytics in the insurance industry enables efficient risk assessment by employing predictive analysis to categorize potential customers into relevant risk classes, eliminating the need for generalized population categorization based on limited data.
Conclusion
Insurance companies are increasingly embracing new data technologies to enhance business efficiency and service quality, with statistics indicating significant improvements in service availability (more than 30%), cost reduction (40-70%), and better detection of fraudulent activities (60%).
These benefits, critical to the competitiveness of any insurer, will greatly payoff in the future, benefiting both the insurers and the policyholders, making investment in technology today imperative. Looking to strengthen your presence in the insurance industry and scale up your business, get in touch with Evvox.