In the insurance sector, big data helps brokers to analyze trends & patterns. This helps to assay risks, spot fraud, and introduce business-friendly policies.
Big data technology allows insurers to work quickly on a customer’s profile. They can check their history, decide on a suitable risk class, form a pricing model, automate claims processing, and deliver the best services.
In the management of claims, big data makes it easier to assess the damage and automate claims. If there are any anomalies, they can be picked up easily.
Other uses of big data in insurance include:
- Determining the lifetime value of a customer
- Improved customer engagement
- Decentralization of data
- Assessment of customer feedback
- Learning how new policies are selling, etc.
Problems that big data solves in the insurance business
Fraud is one of the major problems that concern insurance companies. Big data reduces this problem significantly by simplifying even the most complex cases. Also, business managers can quickly identify and evaluate prospective clients with high risk. Once identified, big data removes them to lower risks. This allows legitimate policyholders to pay lower premiums.