How Data Analytics Is Preparing Insurance Sector For The Upcoming Decade

 

Back in 2006 when Mathematician Clive Humby coined the term ‘Data is the new Oil’, the world was just beginning to realize the true value of data that is accumulated in different forms. Today, however, data intelligence is at the heart of every domain with everyone scrambling to unlock the hidden secrets behind the data. The insurance sector stands out as an early adopter of data intelligence with many examples of corporations as well as agents using data in the underwriting.

With recent technological advancements such as predictive analytics, many organizations are leveraging the data to improve customer experience. Due to the huge amount of data that is captured on a daily basis in any insurance company, mastering the data by leveraging the right technology has become increasingly important. As this data continues to hold vital information, presenting the patterns in a manner that makes it easy for the stakeholders to make informed decisions. This is where a  data visualization platform can become the differentiating factor between your insurance company and its competition in the market.

Importance of Data Visualization For Insurance Companies

Identifying Risks

The importance of data visualization is well highlighted by the saying ‘a picture is worth a thousand words’. Showing the trends by leveraging data is helping insurance companies to spot risks and act on them in a timely manner. With the help of a robust data analytics and visualization platform like ITLytics, claims specialists and sales agents can analyze data that is from the customer,  interactions to flag credible risks, and avoid cancellations.

Claims Analysis

A typical insurance provider will have a variety of different claims being filed by customers on a daily basis. From automobile users to physicians, these claims are filed from different sources such as mobile applications, web, claim agents, etc. A data visualization software such as ITLytics has the power to light up the hidden insights and provide stakeholders of the company to analyze the success ratio of claims filed under different categories. With the right visualization template, the decision-makers can also analyze and predict future patterns with respect to the percentage of claims being closed via digital platforms and compare them to physical claim settlements.

 

Fraud Detection

For any insurance company, dealing with claims that appear to be fraudulent is one of the most time-consuming tasks that the claim analysts have to engage in on a daily basis. Recognizing the common patterns via data analytics tool in the past fraud cases can empower the insurance officers by enabling them to rightly identify fraud cases and fasten the investigation process by as much as 5 times.

 

Premium Forecasting

The biggest advantage of leveraging technology is that it saves time and fast-tracks decision-making resulting in a huge amount of money being saved. For insurance policies that employers buy, historical data has always been useful when forecasting premiums for the employees. By factoring in different parameters like age, gender, health status and region, users can easily create reports using data visualization tools to see past data and project costs of the premium.

How UX Design Can Evolve To Prioritize Customer Experience In A Post COVID-19 World

With over 15 million people being affected by the corona virus pandemic and many countries still under a full or partial state of a lockdown, there is no doubt about the lasting impact this is going to have on all businesses. Experts have already started predicting that customers will continue to be apprehensive and have more interaction with brands online than in a physical brick-and-mortar store. 

The early indication of a change in how customers purchase was suggested by Mckinsey back in May when a report stated that 75% of the first time digital-shoppers planned to continue shopping the same way even after the social distancing restrictions were lifted. This is a clear indication that businesses will need to focus on providing an intuitive User Experience (UX) on their digital products to achieve a satisfactory Customer Experience (CX). 

Brands that hired ux design services and invested in it before the pandemic started are reaping rewards now. But, this does not mean that organizations have missed the bus entirely and in this article, we are going to shed some light on UX trends that businesses should adopt in order to prioritize Customer Experience. 

User Research

Whenever there is a sudden adoption of any digital trend, businesses are left with a grave question of how they can take advantage of the wave. Understanding the pain-points and psychology of the newly acquired users is thus crucial. Conducting a thorough User Research should become a top priority for UX architects. An important aspect of the pre-design stage, research can bring across vital aspects of the end-user journey and contribute towards a memorable UX.  

Hyper Simplicity 

As the UX clout gets bigger, it becomes more and more evident that the approach of ‘less is more’ is the most impactful part of the user interaction design. Some of the biggest brands such as Apple, Uber, Google, etc. are famously known for popularizing the less is more approach by offering a thoughtful design and a hassle-free user journey. Customers who are getting used to digital products tend to prefer businesses that offer fewer options on the screen and have well-defined touchpoints. 

Omnichannel 

Businesses are constantly trying to find ways that can provide them leg-up and standout from their competition. In this pursuit, many brands will try to establish their digital presence in multiple ways and on multiple platforms. Offering an Omnichannel experience on different digital avenues has a lasting impact on the end-customers as it indicates that their experience is just as important as their money. Today, brands from clothing to eyewear are trying to replicate a store-like experience even on their e-commerce web and mobile apps by leveraging AI and other cutting-edge technology. 

As the world slowly moves towards a reality that is free of any pandemic, it has become increasingly clear that UX Design will play a major role in the success of its digital portals. Now is the best time to invest in a ux design strategy that prioritizes the Customer Experience above anything else. If you are looking for a trusted UX design service provider then ITCube is a really good option and you may want to explore!