Bringing Big Data to Life for Insurance – Captricity Report
Article Synopsis :
Over the last twenty years competitive advantage in insurance has come mainly through efficiency gains.
In the report “Bringing Big Data to Life for Insurance”, Captricity makes the case that unlocking insights from customer data trapped in legacy forms and documents remains a significantly underutilized resource for insurers looking to gain ground by transforming the underwriting process and the way products are sold.
The authors see the insurance industry at an inflection point due to three main factors:
- Industry newcomers are fast approaching (with lots of data)
- Lagging legacy IT
- The modern customer expects more
The report explores three potential areas for market development and revenue growth through the application of big data analytics:
- Delivering A Better Customer Experience
- Reaching New Audiences
- Reaching New “Untouchable” Micro-Segments
‘Data barriers’ exist in most if not all large insurance companies, including operational barriers limiting data access and organizational barriers preventing alignment. Breaking down these barriers is key to harnessing the power of legacy data toward improved customer experience and true product innovation.
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Digital Insurer's CommentsIn the digital age customer experience (CX) is everything. Google and Amazon are better at CX than the average insurance company for reasons that have a lot to do with their facility with data – specifically their ability to blend customer data with data from external sources.
Most insurers have troves of customer data. The bad news is it’s trapped deep within legacy systems, hard to get at, nearly impossible to move and manipulate in useful ways (such as blending with unstructured big data).
Data is valuable to the extent it can be analysed. When the analysis is happening internally, at the company level, in areas such as product pricing, claims fraud and risk management, the value of data is (x). When the analysis is happening externally, at the customer level, the buying level, the value of data becomes some multiple of (x). Making for an entirely different business case related to the data itself.
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