Data and Analytics in P&C Insurance, Untapped Opportunities in Insurance Data Analytics and Internal Operations, Innovating for IoT a Benefit to Insurers, Enhancing the Customer Experience, P/C Insurers Facing Tough Sledding in 2016
Insurance Networking News: Data and Analytics in P&C Insurance: Progress and Promise
Often it seems like the insurance industry moves slowly when it comes to technology improvements. The way that insurers manage data and leverage analytics capabilities is no exception. But steady progress is being made. SMA’s recently released research report, Data and Analytics in P&C Insurance, highlights the progress as one of the key themes. The progress is observable in three areas: organizational changes to increase the focus on data/analytics, enhanced technology capabilities, and the breadth of usage across the enterprise.
On the organizational front, more insurers are treating data, business intelligence, and analytics as a functional area of the business akin to finance or human resources. One-third of P&C insurers now have centralized units at the enterprise level outside of the IT function. These units are increasingly being staffed with a blend of business and technology professionals focused on the disciplines of data and analytics. Chief analytics officers, chief data officers, data scientists, and others are becoming more common, as quantified in our research report. Read the full article now…
PropertyCasualty360: Insurance, Data Analytics and Internal Operations: Untapped Opportunities
Insurers have always been ahead of the curve in using data for the customer-facing side of the business. Increasingly complex personal or business data for actuarial models help assess and respond to risk.
However, when it comes to internal operations, many large-scale insurers fail to leverage data to quickly gain insights and drive them to action.
Here are four ways firms can better harness data analytics to improve their internal operations:
1. Build data management capabilities by collecting, mapping, and aligning data from disparate systems (everything from HR to claims systems) to run faster and better analytics. Read the full article now…
Carrier Management: Insurers Will Gain by Innovating for the Internet of Things
The steady advance of the internet of things (IoT) presents a huge number of opportunities for insurers – as well as threats, according to a digest published by Efma*.
The rise in connected homes, connected cars and the use of health and fitness tracking technology will change the nature of insurable risk and insurers need to prepare to remain relevant and benefit from the IoT phenomenon, said the digest, which provides a compilation of some of the latest research and analysis about IoT.
With IoT, insurers have the chance “to create a new, more profitable business model that leverages data to create a more personalized offering and, in turn, facilitates better customer relationships,” said Vincent Bastid, Efma CEO, in a statement in the report, which is titled “The internet of things: Disrupting insurance models.” Read the full article now…
Insurance Thought Leadership: Want to Enhance Your Customer Experience?
Faced with maturing markets and increased competition, many companies are seeking to differentiate themselves by enhancing their customer experience — but those efforts might be misguided.
That’s not because customer experience is a poor source of competitive differentiation (on the contrary, it appears to be a compelling driver of shareholder value). Rather, it’s because companies tend to overlook key components of the experience — elements that may appear mundane but actually exert a meaningful influence on customer perceptions.
Documents often represent one of the most frequent and prominent touchpoints that companies have with their customers.
Part of the problem is that executives are easily enamored with customer experience improvement tactics that are buzz-worthy: big data predictive analytics, artificially intelligent chatbots, transformational customer relationship management (CRM) or mobile-friendly digital engagement, just to name a few examples. Less “glamorous” initiatives — such as billing statement redesigns, correspondence rewrites or sales proposal reformatting — struggle to garner much attention. That’s an issue, because these static documents often represent one of the most frequent and prominent touchpoints that companies have with their customers. Read the full article now…
Insurance Journal: P/C Insurers Face Tough Sledding in 2016, Warns S&P
This year could be a tough one for U.S. property/casualty insurers as catastrophe losses, private passenger insurance woes and declining bond yields erode underwriting results and profitability, according to a report by S&P Global Market Intelligence.
The firm’s 2016 U.S. P&C Insurance Market Report projects that the P/C insurance industry’s pre-tax return on equity will decline about two percentage points in 2016 while its combined ratio will increase to 99.5, the highest level since 2012.
The commercial lines combined ratio is projected to increase to 95.1 from 93.4 in 2015. For workers’ compensation, S&P anticipates that insurers will not be able to do as well as the 93.9 combined ratio they achieved in 2015. Read the full article now…