How Your Business Benefits from Digital Data

Posted by on Apr 16, 2015 in News | 0 comments

How Your Business Benefits from Digital Data

I read an article on the topic of “digital data” in PropertyCasualty360.com this morning and wanted to share the information with you in our blog. Data has seriously changed the way risk is underwritten. With the availability and a constant avalanche of information in today’s digital world, it is very overwhelming and unless we understand business outcomes, insurers lack the ability for insight into these changes.

The article states that “strong products and services are the backbone of insurance, but smart data management distinguishes winners. Today’s customers leave a trail of clicks, swipes, and comments that create a unique virtual identity for each individual. We call this trail a Code Halo and it enables P&C insurers to find new ways to create value.”

In order to do this, insurers need to leverage this data by reinventing their operations and creating a new customer experience. The article lists five ways for organizations can benefit from digital data:

More Accuracy in Risk Profiles

P&C carriers typically rely on historical analyses. Code halos provide higher levels of accuracy by incorporating real-time data on weather and geopolitical issues that had previously been difficult to track. Now carriers can track risk as it changes over time.

Uncovering New Exposures

Call centers have long had access to data on customers’ cars and homes. They can now access additional details via each customer’s code halo, driven by social networks, digital footprints, and agency interaction—and unlock buying potential.

As a result, P&C call centers can proactively recommend product mixes that best serve customers’ needs.

Investing in Predictive Analytics

Traditional data provides insight into the past; predictive analytics looks forward. By dovetailing analytics with the code halos of smart homes, P&C carriers can predict more accurate failure rates for the appliances they cover with extended warranties.

Smarter Underwriting Decisions

Digital data is a game-changer for underwriting criteria. Carriers can organize information faster to better mitigate risk and improve the quality of their decision-making.

Sharpening Loss Prevention Strategies

Digital data drives new methods for prediction and prevention. Technology is putting a rapidly changing spin on loss prevention, sometimes literally.

Rapid innovations in the technology space, from smart fields and smart homes to wearables, are forcing rapid change upon the insurance industry. By leveraging code halos created by each customer, insurance companies can offer better, smarter, and more personalized service – simultaneously driving growth and profit while bolstering customer satisfaction.

Read the entire article here.

Source: www.propertycasualty360.com

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