Insurers, Adapt To Analytics Or Risk Being Left Behind

Xuber, Xchanging’s insurance software business, has published a new report which reveals the transforming power of analytics, and the challenges businesses face in aligning an analytics strategy with operational efficiency.

These insights are explored in detail in Xuber’s report, ‘All That Glitters is Not Gold: How to Build a Business Case for Analytics in Commercial Insurance’. The report highlights the role of analytics in enabling insurers to make fast and accurate decisions that will help them to increase their bottom line. However, the research also reveals the importance of establishing clear objectives from the outset of using an analytics tool, to ensure that users are achieving their desired results.

Among the points considered in the report:

• The need for analytics to be based on dependable information, which requires organisations to invest time and energy into making data as accurate as possible by taking a more holistic ‘end-to-end’ approach to data capture

• The role of analytics in allowing insurers to spot emerging trends and use these to refine risk models and underwriting practices, as well as speed up payments for legitimate insurance claims

• The democratic benefits of analytics; data is opened up to a wider base of employees, meaning it is no longer the preserve of select individuals, and this tends to facilitate greater co-operation between departments

The findings of this report were revealed at an event held in London this morning attended by select members of the insurance industry and several analysts.

Richard Clark, Head of Business Development and Specialist Commercial at Xuber, commented, “Any investment in analytics needs to be firmly in line with an organisation’s strategy and goals, if it is to be utilised to its full potential. Used in the right way, analytics can deliver insight and enable flexibility, allowing insurers to intelligently plot and identify trends and in turn make reliable predictions about the future.

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One of the fundamental considerations when it comes to analytics is trust; similarly to the dawn of social media – when organisations were reluctant to let their own people share their voice with the outside world for fear of misuse – analytics is about trusting your people to do the right thing with greater business insight. Once you have established that, it will open up a realm of possibilities to improve business efficiencies.”