Big data is a concept that has evolved far beyond collecting information to feed BI dashboards. Today, in order to handle the immense volume, variety and velocity of data within an organisation – and act quickly enough on it, businesses seem to need a black belt in Data Kwon Do.
Beyond digital and communications service providers, global enterprises, from those in the utilities sector to financial services organisations, all stand to benefit from harnessing the power of big data. For example, retailers can use the knowledge gleaned to better understand customers’ transaction history and make targeted recommendations on products or services, further improving consumers’ buying experience and driving sales for their business.
However, the insurance industry has not been so quick to tap their data and make use of its full potential. Insurers understand the need to collect and store their data, but analysing and applying it to improve their business, processes and the customer experience has been a hard sell – until they actually try it.
Insurance is Begging for Automation
Customer service has been at the heart of the insurance industry. With claims processing varying from country to country and business to business, as well as covering a wide array of incidents (e.g. illness, auto, animal and home cases), insurance providers have to make sure that their service is as efficient and accurate as possible. Manually filtering claims within each category and then not only qualifying them for return, but also identifying any lingering questions to validate them can be a tedious process. Providers can especially spend a lot of time and effort here if the proper technology is not in place or to investigate potential fraudulent claims.
And atypical claims aren’t just a headache to insurance providers who have to qualify them – they also can cause a backlog within the process, thereby impacting the customer experience. Just like end users of digital and communications service providers, insurance customers want fast, personalised responses for claims.
Although the modern concept of insurance has been around since the seventeenth century, it’s only been in the last few decades that providers have become increasingly digital. They have started to embrace automation as a means to speed up the screening, categorisation, delegation and approval of claims for the appropriate next steps.