Faced with intense competition, diminishing customer loyalty, commoditization of insurance products and an increasingly regulated and complex risk environment, insurers are undergoing a fundamental change in the way they do business. This transformation requires new capabilities for anticipating and satisfying customer needs, reducing costs while increasing operational efficiencies, and finding new ways to comply with stockholder and regulatory requirements.
Business analytics can help insurers address these challenges in three key areas:
- Customer retention and growth - Gain deep insights that anticipate customer needs, improve effectiveness of marketing and cross sell programs, prevent valuable customers from leaving with retention programs, and improve policy profitability based on fraud risk and lifetime value.
- Operational efficiency – Fast track claims and reduce reserve requirements by predicting the complexity, severity and likelihood of fraud, and give executives a clear view of business and financial performance.
- Risk and compliance management – Better understand and communicate risk across the enterprise, integrate risk insights into daily decisions, and address regulatory compliance requirements with IBM OpenPages Operational Risk Management and GRC platform software and Algorithmics, an IBM company, financial risk management software.
- Read the white paper Leveraging bank risk management practices for the insurance industry
Why IBM Business Analytics for insurance?
With superior products, best practices and deep industry expertise, IBM Business Analytics has the software and services to help insurers achieve maximum value and ROI.
- Using business intelligence to reveal underperforming businesses and possible causes, Selective Insurance developed an analytics-driven growth strategy and grew commercial line books by 280 percent.
- Using predictive analytics, Infinity Insurance reduced fraudulent claims payouts and improved subrogation to realize a return on investment (ROI) of 403 percent.
- Using business analytics, Primerica provides its agents with a real time commission reporting portal and saves US$394,000 annually by replacing paper statements with online commission statements.
- Westfield Insurance uses business analytics to drive greater insights, manage risk, service customers and differentiate the company in the markets it serves.
