The insurance industry holds immense potential for business intelligence transformation. At a base level, selling insurance is about knowing customers on a very close level to set the correct rates and reach out with offers that will be both enticing to clients and profitable for firms. These are tasks that BI software can facilitate through an infusion of insightful data-based updates. Companies can stop basing their choices on gut instinct and become driven by internal and external data. Provided they have the proper technology in place, IT leaders can drive their businesses' fortunes through such tactics and help prove their own continuing importance.
Insurance firms interested in big data
According to a report by Novarica, insurance companies are doing an acceptable job of keeping their BI programs current, with a significant number of firms becoming big data users. The source noted that these companies are collecting new types of figures, including geographic locations, to create and tune new offerings. With the use of big data comes demand for new equipment. This is one area where the insurance industry may be lagging, according to the survey, but the research firm noted that many businesses are preparing to outfit themselves with the new tools needed to keep and use their massive new data reserves.
BI is a discipline that encompasses a broad range of services. According to Novarica, analytics operations without big data have become a widespread trend in the insurance community. The report posited that the next year may represent a transition between the old model of BI and the new one, with many companies deciding to enhance their insights with new big data capabilities. There is a gap between companies of different sizes. The source explained that bigger insurance firms are better prepared than their small peers to add big data to their BI tool box. The next steps for these firms could be vital to their future performance, regardless of organizational scale.
The above-mentioned survey is not the only source to see more development in the insurance business intelligence world. According to Insurance Technology contributor Gerald Shields, the huge streams of data that firms are taking in don't help in any meaningful way unless IT departments commit to ongoing BI programs suited to the information at hand. Shields noted that he has been in technology for 30 years, and that business intelligence has been a factor the whole time, in one form or another. It is simply evolving.