Transform Insurance Data for Better Insights & Decision - Making Capabilities

Technological advancements,predictive analytics, and sizable data sets have altered the landscape of the insurance business. Businesses will now have to utilize data-driven marketing approaches to thrive and grow in this highly competitive industry. Consolidating and making sense of this colossal quantity of data presents a formidable challenge. And, the one and only viable solution for this is data transformation or data integration in insurance.

How Does Data Transformation Help Make Better Decisions?

The term "data transformation" describes the process of converting unprocessed data from one source/format into another ready-to-use source/format so that it can be automatically transferred from one type of file system to another. Data transformation allows for the portability of digital assets to other platforms and the translation of programs from one programming language to another.

Breaking down corporate data silos is one of the most promising avenues for industry incumbents. Many insurance firms have increased their data utilization, but only a fraction of those efforts have been fully operationalized. To leverage data from past claims, the underwriting process requires a data platform to store all relevant customer information in one central location.

The use of external data is a unifying factor with the potential to revolutionize every sector and line of business within the insurance sector. The three essential features that any insurance company’s data platform should possess are as follows:

• Store information gathered from a wide variety of sources.
• Serve as the backbone of the insurance company's operations;
• Provide the means to construct, train, and deploy machine-learning-based predictive models.

It's not just that InsurTechs are using technology to shake things up; they're also shifting customer expectations and requirements. Incumbents need to reimagine and update the applications that have given them an edge in the market to compete with InsurTechs.

When applied to any ecosystem, data governance establishes a structure for defining data's origin, management, and consumption. Companies in the insurance sector, which is undergoing profound change, require a solid framework that reveals data lineage, transformations, and usage. Using a platform that gives data scientists unrestricted room to try out new ideas may be helpful.

Also Read: Data Governance Best Practices for the Insurance Industry

Why Does the Insurance Industry Need a Data-based Approach?

The insurance sector has always been heavily data-driven. For insurers in the past, this meant making risk assessments and policy decisions based on historical data and forward-looking assumptions. What's changed in the last few years is that insurers have access to more data than ever, and that data comes from more places than ever before.

• Some insurers still need to use updated policy, billing, and claims systems that must be run in tandem with newer ones.
• It is imperative for insurance companies to integrate their data systems and analyze data across all areas, including customers, products, and claims. Operating with disjointed data systems, managed by separate departments or business units, is an outdated approach that hinders the ability to gain comprehensive insights and make informed strategic decisions.
• Inaccurate data records, incorrect data (such as incorrect email addresses or phone numbers), and missing data elements contribute to poor data quality. The quality and timeliness of data are prerequisites for its value as an asset.

A growing number of insurance companies are using data, technology, and analytics to improve operational efficiency and gain a deeper understanding of their customers. Those who take the time to learn about their brand, competitors, and the opportunities available in the current business climate will be the ones to succeed.

Final Thoughts on Data Transformation in the Insurance Industry

To thrive in the era of data and digitization and to outperform competitors, insurance companies must undergo data transformation/integration. By integrating data, you can ensure that the most relevant information is available to the right people at the right time, increasing the likelihood of gaining valuable insights. Similarly, data transformation helps managers make more relevant and practical decisions based on hard facts. In any case, you can always count on the expertise of our professionals from Trueloader to provide you with the best advisory and implement most useful data-driven solutions. Give us a call today!