Category: Insurance

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AI-Powered Underwriting- Insurance’s Crucial Game Changer

February 15, 2024

There are no prizes for guessing that enterprises and businesses are seeking to leverage machine learning algorithms, AI tools, and data analytics for streamlining operations, gaining cost and time benefits, enhancing accuracy, taking better decisions, and boosting consumer engagement simultaneously. The same is true for the insurance sector, which is betting big on AI-driven underwriting which could be its biggest game changer yet. Here is a closer glimpse into the same. Underwriting with AI- What It Entails Based on the insurance type and category, the process of underwriting will involve information collection about the personal and financial details of applicants along with driving records, health records, and other crucial data. Post collection, this will be used to determine the calculation of the premium which is fair for the insurance company and the customer alike. Yet, this is not always the best method, although it does save time, cost, and efforts for insurance companies. Underwriting with AI will work in a unique and nonconventional manner, deploying machine learning algorithms to gather and analyze huge data volumes. It will automatically help unearth trends that may otherwise be neglected by conventional methods of underwriting. AI can be applied to gather data from multiple sources, which include public data, social media information, credit reports, and more, thereby enabling insurers to build a more comprehensive risk profile of any customer. AI can undertake data analysis way faster than human beings, while enabling insights that help insurance companies take more accurate and swifter underwriting decisions. As mentioned, several patterns and trends may also be revealed through the usage of AI which may be overlooked otherwise. Advantages of AI-Driven Underwriting AI-powered underwriting comes with several advantages that insurance companies should note. Some of them include the following: Are There Any Challenges of AI-Driven Underwriting? AI-powered underwriting does have a few challenges that insurers need to tackle effectively. There is always a need to ensure data privacy and security while analysing vast amounts of personal details. Preventing unauthorised access or data misuse continues to be a concern for insurers in this regard. Algorithmic biases should also be monitored and tracked, thereby eliminating any unwarranted prejudice against specific social groups or communities.  The higher costs of deploying AI-based underwriting tools are also a challenge for some insurers. Being transparent about AI usage and personal data collection is also the need of the hour for insurance companies in this case. How It All Stacks Up So, does AI-based underwriting make a strong case for itself? The answer is a glaring yes, if you take a closer look at the benefits mentioned above. Predictive analytics will help understand and assess risks better, while generating real-time data for on-demand quotes. Policy customisation will be scaled up for every customer and that too with lower and fairer premiums and more flexibility in terms of coverage limits. Underwriting will be quicker and more accurate, while ensuring greater profitability for insurance companies. Yes, it is a win-win scenario that looks set to be the next big game changer for insurance. At the same time, it is also worth mentioning that AI-powered underwriting plays a vital role in enabling insurance companies to evaluate risks more effectively. This helps them detect frauds or potential issues early on before they snowball into major problems or losses. High-risk customer types/segments can be swiftly identified while insurers can also enhance their risk management and tracking abilities in turn. AI can lower underwriting costs significantly along with cutting out errors and time lags completely. Companies can thus efficiently allocate their resources to other areas of business to scale up their revenues. Of course, customer satisfaction levels also considerably improve with faster underwriting and decision-making. The fact that they get personalised and better pricing also helps immensely. This leads to higher retention volumes and more business growth for insurance companies in turn. So, as they say, a stitch in time saves nine.  With AI-backed underwriting, there could be a lot more than just savings. It can transform most insurance companies into well-oiled machines generating more revenues and catering to customers more effectively. Now who doesn’t want that? The time is ripe for a transition to the AI-backed ecosystem. The time is NOW. FAQs Can AI-powered underwriting adapt to changing market conditions and evolving risk factors? AI-powered underwriting has the capability to evolve in sync with market dynamics and changing conditions along with evolving factors for risks. Adaptability is one of the strongest assets of AI and machine learning algorithms which can keep tracking and adapting to market and borrower behavior changes, while updating their risk assessment models likewise. Which machine learning algorithms are commonly employed in AI-powered underwriting? There are various types of machine learning algorithms that are commonly used for AI-powered underwriting. Some of them include random forests, decision trees, naïve Bayes, and also K-nearest neighbors. Logistic regression is another model that is commonly employed in this case. What are the key benefits of adopting AI-powered underwriting for insurance companies? Some of the biggest benefits for insurance companies adopting AI-powered underwriting include faster and more accurate underwriting, personalised and fair pricing, comprehensive risk assessment and mitigating future problems, and of course, time and cost savings. What is the future outlook for AI-powered underwriting in the insurance sector? AI-driven underwriting will be embraced by more insurance companies for quicker and on-demand quotes for customers which are personalised and come with transparent and fairer pricing. What safeguards are in place to protect customer data in AI-powered underwriting systems? Insurance companies have numerous safeguards for protecting consumer data in the case of AI-powered underwriting. These include data anonymisation, access controls, encryption, regular data breach and security audits, and several other measures.

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Unveiling the Opportunities for MGAs in India

Unveiling the Opportunities for MGAs in India’s Expanding Insurance Market

February 5, 2024

MGAs (managing general agents) play vital roles in the entire distribution chain of insurance. Taking the ever-expanding insurance market in India into account, it can be said that there are several untapped insurance opportunities that MGAs can successfully harness in the future. Yet, while they are not yet existent in India, they may have a crucial role to play in the future. Knowing more About MGAs MGAs (Managing General Agents) are insurance intermediaries which can get authority from their insurance partners to quote and bind policies that may fit within the agreed-upon parameters of risk of their insurance company relationships. Many MGAs also build differentiators with expertise in niche, nonstandard, or specialty insurance lines, and also through possessing privileged access to particular segments of customers. What are the Opportunities for MGAs Ahead? From diversification of insurance products to further leveraging untapped insurance opportunities and expanding insurance market in India, MGAs have several opportunities to fulfill in the future. The market gap currently results from the fact that where insurers can delegate distribution authority to corporate agents, platforms, and brokers, there are no regulatory provisions for delegating underwriting authority. At the same time, one of the biggest challenges that distribution networks face in the country is lower penetration of coverage in semi-urban and rural zones. Here are some of the ways in which MGAs can fill up the gap: Why MGAs are Needed in India Being an insurance intermediary between the policyholders and insurers, MGAs will automatically bolster customer experiences through taking care of underwriting policies and offering smoother and faster policy administration and claims handling. They can also take care of risk management in turn. India’s massive population always means that there is a huge untapped market for more insurance products. A few large players currently dominate the market and MGAs can help level the playing arena by enabling smaller insurance companies to access the market or expand in several areas without the setting-up and infrastructure-building costs involved. By offering more targeted insurance solutions, MGAs (Managing General Agents) can also enhance overall insurance penetration in the country. They can create insurance solutions tailored to the requirements of particular regions or industries. Just 3.76% of the Indian population had insurance coverage in any form in 2019 and by March 2020, only the top five insurers in the country accounted for a whopping 63.5% in terms of market share. This makes a compelling case for the introduction of MGAs in the market, something that the IRDAI is reportedly considering at the moment. MGAs will not just extend coverage to under-served and rural areas where traditional insurers have limited presence, but also enable partnerships with brokers and local agents for meeting specific community needs in this regard. They can also cater to niche segments like startups, high-net-worth individuals, and small and medium-sized enterprises (SMEs). These segments often require specialization solutions that traditional insurers may not always be in a position to provide. MGAs can also work with insurtech and fintech players to tap their distribution networks while offering their expertise in claims management and underwriting. Here are some other ways in which MGAs can help: Hence, as can be seen, there is a strong case for the introduction of MGAs in the Indian market. They will not only expand the reach and distribution of coverage throughout the country, but also bring many other benefits for insurance companies in turn. FAQs What are the key opportunities for MGAs in India’s expanding insurance market? There are several opportunities for MGAs in India’s expanding insurance market. These include expanding the reach of bigger insurance firms in several regions at lower costs, offering expertise for specific lines of business, taking on underwriting authority, claims management, and policy handling, offering personalized insurance solutions to customers, and more. What are some examples of successful MGAs in India? There are no examples to cite currently for successful MGAs in India. The country has not officially introduced MGAs into the insurance industry. However, the IRDAI is reportedly considering the feasibility of allowing MGAs to operate within the sector and a decision on this aspect could be announced in the future.

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Hyper-personalised Insurance with InsurTech

Hyper-Personalised Insurance With InsurTech

January 22, 2024

The personalised assurance segment is on an upswing, with more insurers digitalising customer journeys fully while embracing hyper-personalised services driven by data. This enables them to deliver superior services and ensure improved customer outcomes in tandem with elevating overall brand awareness, engagement and customer retention. Why is it becoming necessary? An example is to illustrate the need for hyper-personalisation. A survey by Capco saw close to 14,000 respondents throughout 13 global markets offering their opinions. Most people experienced issues with claims, especially with lengthy paperwork and higher response times while 37% of consumers confirmed that their lack of information about available products or insurance. 28% of uninsured people cited this as a key reason while 25% found insurance unnecessary. 57% wanted better online experiences from their insurance companies, while 66% of customers with policies were eager to use apps that helped them see their financial products more easily. 72% are agreeable to sharing personal data to get more affordable premiums, while it increases to 87% for younger consumers between the ages of 18 and 24. This makes a case for the advent of hyper-personalised insurance driven by InsurTech solutions in the contemporary era. Here’s learning more about the same below. What Hyper-Personalisation Entails for Insurers Hyper-personalised approaches towards insurance solutions are the new norm, backed by connected devices and data analytics. Insurance companies are now deploying AI and machine learning along with IoT and telematics to learn more about their customers. They are using data for identifying low-risk customers while offering them cheaper premiums or usage-based premiums accordingly. Insurance companies are managing risks more efficiently with hyper-personalisation. While it is helping them fit the right customers to the right products at the right time, it also enables seamless data gathering without intruding on customers’ time and privacy. The approach fuses bigger data collection blueprints (across third-party, personal, telemetry and external data) and tapping the same for developing a dynamic and evolving understanding of customers across segments. This information is then used to tailor customer engagement both physically and digitally. The objective of hyper-personalisation is to facilitate contextual, relevant and tailored interactions across marketing, sales, servicing, underwriting and claims. AI-driven journey orchestration engines or real-time interaction platforms are helping insurers considerably boost customer loyalty. This can be done by responding to behavioural changes or predicting the same via algorithms. It will naturally increase retention rates for customers while also indirectly scaling up customer acquisition efficacy at the same time. Advantages of Hyper-Personalisation Hyper-personalised insurance comes with numerous benefits for policyholders. Some of them include the following: Delivery of tailored coverage with InsurTech platforms and solutions. Leveraging automation, AI, analytics and big data for building customised insurance solutions across home, travel, health and other categories. Customers can save money and time along with lowering their overall effort to gain information and assistance. Customer experiences are hugely improved with unique messaging and interaction throughout multiple channels. Filtering out the market buzz while helping customers make better and more informed decisions. Insurance companies can lower marketing spending and reach out to targeted customers across segments, while boosting sales and ROI (return on investments). Superior growth in customer volumes and engagement through adapting products to fit specific customer needs and managing renewals proactively. Unlocking greater value through data-based and customer-centric approaches while scaling up potential customer conversion rates with tailored offers and solutions. Higher insurance agent productivity through lower prospecting times. Implementing Hyper-Personalisation Here are a few aspects that can facilitate the better implementation of hyper-personalised insurance. Reorienting approaches towards customer centricity, while mapping out the full customer journey and aligning goals towards these pathways. Keeping data at the core of the business, while leveraging analytics, AI, cloud platforms, machine learning, and business process agility to enable hyper-personalisation. This will help enable recommendations and assistance across claims and underwriting. Implementing a mechanism for smoothly gathering customer data across sources including customer account information, CRM, marketing and internet data, claims and fraud data, multi-channel interaction data and other sources. Real-time data like behaviour, dates, locations and times can also be sourced from websites, social media platforms, mobile app activity and IoT data from telematics and wearables. This helps build one-on-one user relationships while enabling a better understanding of consumer behaviour. Establishing data privacy mechanisms and protocols is also essential in this context. The next mechanism is tailoring relevant products and services through prediction/anticipation of customer needs via insights garnered through customer behaviour and perceptions. Insurers can classify data for creating digital experiences tailored to meet customer expectations. They can also keep modifying insurance costs and policies to take customer needs into account. They can also cross-sell other solutions and products to customers on suitable channels and at suitable times. Hyper-personalised insurance can thus be implemented with a strong foundation in data and analytics along with other InsurTech solutions. Capturing and addressing customer needs and pain points throughout their journey while engaging them with specifically tailored offers and products is the need of the hour. FAQs In what ways does hyper-personalisation translate to tangible benefits for policyholders? Hyper-personalisation can unlock numerous benefits for insurance policyholders. They benefit from getting tailored offers and products along with prompt responses and assistance based on their behavioural data, preferences and purchase history. They can benefit from improved engagement and user experiences along with customised product solutions and pricing along with enhanced transparency. What categories of data serve as the foundational elements for personalising insurance policies under the hyper-personalised model? There are several data categories which are key foundational elements for the personalisation of insurance policies. These include demographic data, claims histories, risk factors, granular behaviour information, activity and experience data, social media data and more. Can the hyper-personalisation approach be universally applied across diverse insurance categories? The hyper-personalisation approach can be applied universally throughout multiple categories of insurance. These include home, health, travel, auto and more. How is the privacy of policyholders safeguarded amidst the data-intensive nature of hyper-personalised insurance? Insurance companies can safeguard the privacy of policyholders’ data with

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The Impact of MGAs on Risk Management and Underwriting Practices in India

The Impact of MGAs on Risk Management and Underwriting Practices in India

January 16, 2024

Managing general agents (MGAs) do not exist in India as of today, although they may be allowed in the future (the IRDAI is reportedly considering enabling these entities in the insurance industry). However, there is no denying the impact of MGAs on risk assessment and management in the Indian insurance sector along with potential opportunities for MGAs’ underwriting capabilities. Let us take a closer look at how these entities can streamline these two aspects of the insurance sector. Underwriting and Risk Management in Indian Insurance- How MGAs Stand Out The impact of MGAs on risk assessment and management along with underwriting can be gauged through the following aspects. MGAs are also continually updating their knowledge base due to a fast-changing world and evolving risks. From climate change and cyber-security to other emerging risks, MGAs are adaptable and offer specialist underwriting and risk evaluation abilities for insurance carriers or reinsurers. MGA’s underwriting capabilities come to the fore, focusing on specialist lines and niche markets, enabling more accurate policy pricing and a better balance between rewards and risks. The surplus from profitable underwriting can be reinvested into technological expansion, research, and expanding markets. MGAs can indirectly spur growth throughout the sector by ensuring higher profitability. They are also skilled at making sure that risks are balanced better throughout the entire spectrum and effectively enable the management of aggregation limits. They ensure that any single catastrophe or disaster does not lead to a spiralling or domino impact, thereby protecting the financial health of reinsurers and insurance carriers alike. Real-time data is also leveraged by MGAs for gaining more insights and forecasting trends along with making informed decisions. They also thrive on analysing market trends and data while being positioned ideally to build policies that offer maximum and specialised coverage at comparatively affordable rates. Hence, through the combination of more profitable underwriting and risk management with an emphasis on specialist knowledge and dynamic market responses, MGAs are perfectly placed to deliver greater value to the Indian insurance industry in the future. FAQs What impact have MGAs had on risk management practices in the Indian insurance industry?  MGAs have had a major impact on risk management practices in the Indian insurance industry. Some of their plus points include specialist knowledge and focus on business lines which help price policies more competitively and accurately while evaluating risks better from a micro standpoint. At the same time, MGAs are also leveraging technology for risk estimation and management. How have MGAs influenced underwriting practices in the Indian insurance industry? MGAs have greatly influenced underwriting practices throughout the Indian insurance sector, making them streamlined and more technology-driven with accurate risk estimation and management. They have specialist knowledge of particular business lines and bring this into play while underwriting policies and enabling quicker turnarounds. 

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Data Analytics in Health Insurance for Better Risk Management

2024 Trends: Data Analytics in Health Insurance for Better Risk Management

January 8, 2024

The health insurance industry has witnessed a rapid evolution in terms of digitisation, which has also swiftly transformed several other sectors worldwide. One of the biggest contemporary trends in health insurance (and poised to last for the foreseeable future) is the harnessing of data analytics to ensure superlative risk management among other benefits. Pharmacy managers, insurance companies, healthcare providers, and other industry stakeholders are already leveraging analytics to tackle issues of fast-growing healthcare costs. Insurance companies are already using them to identify high-risk patients and operate accordingly. Why Data Analytics is Indispensable From an operational standpoint, data analytics is indispensable for health insurance companies. They keep generating huge data volumes internally through sales and engagement but also get sizable chunks from varied external sources. When this data spreads out through multiple systems, it becomes an uphill task for insurers to effectively use and track the same. This is why analytics-based solutions that can fuse and consolidate data from multiple touch points and sources have gained relevance in recent times. A centralised data gathering system with consistent analytics and actionable insights is thus one of the key trends in health insurance currently. How Data Analytics Enables Better Risk Management Data analytics is undoubtedly contributing towards enabling insurers to manage their risks better. Here are some aspects that should be highlighted in this regard. These benefits have gained even more traction in recent years if one considers how insurers lose a whopping $40 billion per annum on account of fraudulent claims as per Gartner reports. Many insurance companies also estimate 10-20% of claims to be fraudulent while identifying less than 20% of the same. Suspicious and fraudulent behaviour and patterns can be identified with data analytics, with insurers creating diverse models to enable swift detection based on historical data and activities. For instance, analytics has reportedly helped the Czech Republic’s Allianz Insurance to save a whopping US$4.5 million annually by lowering fraudulent claims paid by it. This is just one of the instances that testify to the need for insurance companies to rapidly adopt data analytics into their operational frameworks. Analytics can be used to conduct risk evaluation in real-time which will help organisations respond swiftly in volatile scenarios. For example, in the case of auto insurance, an accurate assessment of risks posed by specific drivers will help insurers create more competitive premiums. Cars connected to the internet will help them gather large volumes of data accordingly. Insurance firms can now predict the chances of drivers being involved in accidents by analysing driving habits and behavioural data. Some other advantages of data analytics include easier customer lifetime value (CLV) prediction and prospective claim forecasting. FAQs How can data analytics contribute to more precise risk assessment in the health insurance industry? Data analytics can enable more accurate risk assessments in the health insurance sector. It can help identify fraudulent behavioural patterns and flag the same for review before the actual payout. What impact do 2024 trends in health insurance data analytics have on customer experiences and personalised offerings? 2024 trends in health insurance data analytics will have a positive impact on customer experiences. Insurers will be able to personalise their offerings for customers based on their behavioural data and also offer custom premiums with incentives for recommended and healthier actions.

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Enhancing Underwriting Precision: The Role of Data Analytics in Insurance Broker Decision-making

Enhancing Underwriting Precision: The Role of Data Analytics in Insurance Broker Decision-making

December 28, 2023

Data analytics in insurance has been a veritable game-changer for the industry in recent times. It has become a major solution for several issues while enabling a more personalised experience for customers. Insurance brokers are steadily embracing data-driven insurance intending to bolster their decision-making process. Let us look at some of the biggest advantages of deploying analytics in the insurance sector. Benefits of Data Analytics in Insurance for Brokers Insurance broker decision-making can improve considerably with the deployment of data analytics. Here are some of the biggest advantages worth noting in this regard. These are some of the core benefits that can boost insurance broker decision-making greatly. Analytics can transform the operational side of the business while freeing up brokers to focus on strategising for future growth without worrying about the operational and administrative aspects of the sector. FAQs What is the role of data analytics in enhancing underwriting precision for insurance brokers? Data analytics can greatly enhance underwriting in terms of accuracy for insurance brokers. It can estimate risks better and predict premiums more accurately for customers who are more prone to the same. In what ways can insurance brokers leverage data analytics to tailor insurance solutions for individual clients? Insurance brokers can seamlessly leverage data analytics for tailoring insurance solutions for their clients.  Data-driven insights will enable better customer understanding and an idea of preferences. This will help insurance brokers come up with genuine recommendations and more personalised products/services that will help customers meet their needs better. What types of data sources are most valuable for insurance brokers seeking to enhance underwriting precision through analytics? Insurance brokers who are looking to enhance their underwriting processes through analytics rely on varied data sources. Some of these sources include social media platforms, demographics, lifestyle, age, medical data, and more.

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Strategies for Success: How MGAs Can Thrive in the Indian Insurance Industry

Strategies for Success: How MGAs Can Thrive in the Indian Insurance Industry

December 26, 2023

MGAs (Managing General Agents) are currently not existent in the Indian insurance industry. However, there is a genuine need for the introduction of more MGAs into the industry, considering the country’s overwhelming need to scale up insurance penetration (just 3.76% of the population had insurance coverage in any form in 2019). MGAs will help the industry considerably by identifying niche markets and underserved segments and offering specialist solutions for the same on behalf of insurers. It will be possible to offer customised and more value-added micro insurance in India which is not possible for bigger insurance players across several regions. Insurance MGAs can help in the extension of coverage throughout several under-served and rural areas, where traditional firms have limited presence due to the lack of resources and infrastructure. MGAs can also partner with local brokers and agents to offer more tailored insurance products that meet community-specific requirements with aplomb. As mentioned, they can also cater to niche and often underserved (by bigger insurance carriers) segments like startups, HNIs (high-net-worth individuals), and SMEs (small and medium enterprises). Insurance MGAs can also enter into collaborations with insurtech players that are already leveraging technology to disrupt the industry. Through these partnerships, these startups can tap their distribution networks and expertise in claims management and underwriting. MGAs Competitive Landscape and the Need for Proper Strategies MGAs (Managing General Agents) do not exist in the Indian market today. However, they are steadily becoming more relevant worldwide and also throughout Asia. The IRDAI is already considering the feasibility of allowing MGAs in a bid to increase insurance penetration throughout the country and it may become a reality soon. The traditional argument in favour of MGAs is usually based on the fact that global and large insurance carriers have become behemoths with commoditised and mass-market products and services, which do not focus on individual customer requirements. MGAs, in contrast, are smaller operations which can easily foray into niche areas and enable bespoke and more affordable insurance solutions tailored for their customers. The sector may develop exponentially across Asia over the next 2-3 years. Hong Kong is anticipated to stay a more dynamic coverholder segment and more MGAs should come up in Singapore. More regulators in the region will steadily amend their frameworks and unveil pilots to allow MGAs into their insurance industries. The usage of MGAs is fast becoming a common strategy for distribution channels in insurance. Along with potentially enabling microinsurance in India for specific communities, people, and regions, MGAs can also react more swiftly to new market changes and enable more efficient risk management on behalf of bigger insurance carriers. Hence, considering the competitive nature of the market globally and with things heating up in Asia, MGAs will have to fine-tune their strategies for success in a more intelligent manner. For instance, as far as the Indian market is concerned, here are some strategies that they can consider. Strategies Worth Considering for MGAs in India These are some strategies that MGAs (Managing General Agents) can harness for more success in the Indian insurance industry. As can be seen, the time is ripe for the introduction of MGAs (Managing General Agents) in the Indian insurance industry. MGAs that leverage technology can help cater to niche segments, offer more personalised or micro-level insurance solutions, boost underwriting and claims management, and combine with insurtech or fintech players to revolutionise the industry. The sector has huge potential for growth in India although a lot depends on official regulations being released for the same shortly. FAQs What are the key opportunities for MGAs in India’s expanding insurance market? MGAs can tap several opportunities like the expansion of insurance coverage on behalf of larger carriers in under/un-served/rural markets, offering more niche and personalised insurance solutions with specialist services, making claims processing and management more seamless along with enhancing underwriting for insurance companies, and also offering insurance solutions for sectors usually not covered by traditional insurance firms. What are some examples of successful MGAs in India? There are no examples of successful MGAs in the country as of yet since it has yet to officially allow these entities in the insurance industry. However, the IRDAI is reportedly deliberating on the possibility of allowing them in the future. What are the key trends that MGAs should watch out for in the Indian insurance market? Some of the major trends that MGAs should watch out for in the Indian market include the focus on more specialist and micro insurance solutions, increasing customer demand for personalised insurance products and services, and of course, the increasing shift towards digitisation.

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2024 Trends: Data Analytics in Health Insurance for Better Risk Management

2024 Trends: Data Analytics in Health Insurance for Better Risk Management

December 20, 2023

The health insurance industry has witnessed a rapid evolution in terms of digitisation, which has also swiftly transformed several other sectors worldwide. One of the biggest contemporary trends in health insurance (and poised to last for the foreseeable future) is the harnessing of data analytics to ensure superlative risk management among other benefits. Pharmacy managers, insurance companies, healthcare providers, and other industry stakeholders are already leveraging analytics to tackle issues of fast-growing healthcare costs. Insurance companies are already using them to identify high-risk patients and operate accordingly.  Why Data Analytics is Indispensable From an operational standpoint, data analytics is indispensable for health insurance companies. They keep generating huge data volumes internally through sales and engagement but also get sizable chunks from varied external sources. When this data spreads out through multiple systems, it becomes an uphill task for insurers to effectively use and track the same.  This is why analytics-based solutions that can fuse and consolidate data from multiple touch points and sources have gained relevance in recent times. A centralised data gathering system with consistent analytics and actionable insights is thus one of the key trends in health insurance currently.  How Data Analytics Enables Better Risk Management Data analytics is undoubtedly contributing towards enabling insurers to manage their risks better. Here are some aspects that should be highlighted in this regard.  These benefits have gained even more traction in recent years if one considers how insurers lose a whopping $40 billion per annum on account of fraudulent claims as per Gartner reports. Many insurance companies also estimate 10-20% of claims to be fraudulent while identifying less than 20% of the same.  Suspicious and fraudulent behaviour and patterns can be identified with data analytics, with insurers creating diverse models to enable swift detection based on historical data and activities. For instance, analytics has reportedly helped the Czech Republic’s Allianz Insurance to save a whopping US$4.5 million annually by lowering fraudulent claims paid by it. This is just one of the instances that testify to the need for insurance companies to rapidly adopt data analytics into their operational frameworks.  Analytics can be used to conduct risk evaluation in real-time which will help organisations respond swiftly in volatile scenarios. For example, in the case of auto insurance, an accurate assessment of risks posed by specific drivers will help insurers create more competitive premiums. Cars connected to the internet will help them gather large volumes of data accordingly. Insurance firms can now predict the chances of drivers being involved in accidents by analysing driving habits and behavioural data. Some other advantages of data analytics include easier customer lifetime value (CLV) prediction and prospective claim forecasting.  FAQs How can data analytics contribute to more precise risk assessment in the health insurance industry?  Data analytics can enable more accurate risk assessments in the health insurance sector. It can help identify fraudulent behavioural patterns and flag the same for review before the actual payout.  What impact do 2024 trends in health insurance data analytics have on customer experiences and personalised offerings? 2024 trends in health insurance data analytics will have a positive impact on customer experiences. Insurers will be able to personalise their offerings for customers based on their behavioural data and also offer custom premiums with incentives for recommended and healthier actions. 

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2024 Outlook: Data-Driven Transformations in the Indian Insurance Brokerage Industry

2024 Outlook: Data-Driven Transformations in the Indian Insurance Brokerage Industry

December 15, 2023

The Indian insurance brokerage ecosystem has witnessed rapid change in recent years, driven by data-driven transformations. This has revamped overall decision-making, marketing, and customer support in a major way and the trend looks set to continue in the future. Here is a closer look at how data-based transformation will ultimately impact the operations of brokerages in the Indian insurance market in 2024 and beyond.  Ways in Which Insurance Brokers Will Leverage Data Data analytics in insurance will be a major game-changer shortly for brokers. Indian insurance brokerages will ultimately turn to these models of operation.  Brokerages will also embrace technology to offer customers better services across WhatsApp, emails, SMS, or phone among other channels. They can reach out better to customers at the right time and place along with forecasting buying trends and patterns. Data analytics will help with customer behavior analysis which will unearth several invaluable insights in turn for brokers. The end goal will be to provide customised and need-based solutions across segments. Target consumers can be easily identified and segmented while products can be tailored to meet their needs. Brokerages can also leverage technology to help insurers with better underwriting, eliminating fraud enabling risk management, and maximising usage of alternate data sources. They can also use data for collaborations with other parties for specific use cases and scenarios.  These are some of how Indian insurance brokerages will gradually adopt data-driven transformations to help build competitive advantages throughout the insurance landscape.  FAQs What key data-driven transformations are anticipated for the Indian insurance brokerage industry in 2024?  The Indian insurance brokerage industry in 2024 could adopt several data-driven transformations including personalised customer products and services along with automated and faster claim settlements and processing. They can also delve into personalised pricing decisions and models to benefit their customers.  What role will emerging technologies play in shaping the data-driven landscape of Indian insurance brokerages in 2024?  Several emerging technologies like AI, automation, machine learning, and data analytics will have a vital role to play in shaping the entire data-based Indian insurance brokerage landscape in 2024. They will make it easier to build customer profiles, target and segment customers in specific categories, predict customer buying patterns based on behavioural habits and preferences, and customise products/services and pricing accordingly among many other use cases.  In what ways will data analytics impact risk management and decision-making processes for Indian insurance brokers in 2024? Data analytics will help Indian insurance brokers make better decisions and manage risks more effectively in 2024 and beyond. Analytics will help them identify potential risks at the customer’s end and also eliminate the chances of fraud. At the same time, it will help make better decisions on personalising pricing as per customer habits and lifestyle preferences. It will also help make better decisions on policy issuance depending on customer data from multiple channels. 

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Indian Insurance Brokers Harnessing Data Analytics for Business Growth

Indian Insurance Brokers Harnessing Data Analytics for Business Growth

December 4, 2023

The Indian insurance sector has witnessed growth by leaps and bounds in recent years. At the same time, in a bid to drive future business growth in insurance, several brokers and insurtech platforms have been leveraging data analytics to great effect. It is worth mentioning that based on S&P Global Market Intelligence reports, India currently has the second-biggest insurtech market in all of the Asia-Pacific region. Mordor Intelligence has also forecasted the online insurance market in the country to touch INR 220 billion in value by 2024. This will be a testament to the growing popularity and relevance of digital channels and engagement along with self-service platforms for quick and easy access. A lot of this growth will be fuelled by Indian insurance brokers and platforms harnessing analytics in insurance industry. Here is a closer look at some of the recent success stories of these brokers who have tapped analytics for future growth opportunities galore. Successful Insurtech Platforms and their Digital Transformation Here are some of the insurtech platforms cum Indian insurance brokers who have used analytics and other digital technologies to power growth. How Analytics is a Win-Win Proposition for Insurance Brokers By leveraging analytics and AI algorithms, insurance brokers can naturally stimulate faster and more organised growth. They can personalise products and services for higher customer satisfaction and conversions/sales alike in addition to forecasting customer needs and future market trends. Analysis of current market patterns also helps tailor products as per diverse customer segments. In turn, there is also the ability to come up with better growth strategies while enabling faster data-based underwriting and claims settlement. This leads to higher customer retention and steady business growth. Insurance brokers are more driven by the need to provide real-time services across omnichannel and digital frameworks. There is a huge amount of data that is being generated at every customer touch point and transaction. This can be leveraged for various needs, right from understanding target customers better and segmenting them to offering tailored solutions, enabling faster processing and claims settlement, and also coming up with better marketing campaigns that resonate with audiences. Hence, the role of digital analytics is pivotal for insurance brokers and insurtech platforms in the country. In an increasingly digital world, its relevance is only poised to grow exponentially. FAQs How have Indian insurance brokers successfully implemented data analytics for business growth? Indian insurance brokers have successfully implemented data analytics for business growth in several ways. They have used analytics to understand customer wants and personalise products/services accordingly. Analytics has also helped enable faster claim settlement and processing along with better underwriting. Instant risk modeling and profile-building are also possible along with forecasting future market patterns. What key metrics or indicators have these success stories highlighted in leveraging data analytics for business success? Some of the key indicators or metrics highlighted by these success stories in leveraging data analytics for business success include personalised solutions/services, servicing, claim settlement, automated underwriting, customer recommendations, and more.

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