Big data is a hot topic for insurance industry. Every
carrier in this industry is taking about big data such as “What is big data?”
or “What does it mean to me?” What does
big data really mean for insurance industry? Big data can provide these
carriers to:1
1. Identifying the right customer for the fight product at
the right price at the lowest risk.
2. Reducing clams cost and revenue leakage by providing
efficient means of processing and detecting fraud sooner
3. Speed to “new” market sooner –The new market is not just
geographical but also demographical
The figure below represents one of the frameworks using big
data:
Lot of companies is struggling for big data investment due
to benefits. Costs are easy to estimate. The costs include introduce new software,
servers, and training. The difficult thing is to predict the benefits.
Stockholders won’t agree to spend million dollars in a so called “big data
project” without showing benefits. You cannot easily quantify the new coming
revenue from enhancing customer experience or getting better risk management. These
companies even may have higher priority for other project in funding
competition. That’s why most of the successful
cases are from other industries included retail industry or IT companies. We would like to see some good case study from
insurance companies in the nearly future.
References:
1. http://smartdatacollective.com/smartanalytics/78176/big-data-insurance-industry-ready-take-advantage
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