X by 2, a consulting firm specializing in the insurance industry, revealed major challenges that this industry faces with regards to IT and the trends of IT adoption. X by 2 serves national and regional life, health and property-casualty insurer clients by delivering architecture design, planning, oversight and turnaround services on enterprise-scale business technology initiatives.
Yasir Hussain, principal of X by 2, said, “Insurers that embrace change and make significant investments in direct-service channels and self-service capabilities to consumers through mobile and Web will gain market share for the foreseeable future.”
“While system modernization continues to take place in the backend, leapfrog investments will be made to the systems supporting mobile and Web,” Hussain added.
One key revelation was the increase in prominence of self-service. Rather than relying just on human agents, the insurance industry is moving towards other channels for delivery of consumer services.
According to analysts, the concept of Big Data is used to address consumer needs optimally. Better knowledge about customers will help any company to serve them better. Those insurance companies which were proactive in addressing this need and who have already implemented steps to enhance customer service will reap rich dividends now.
The use of Big Data and analytical applications have helped insurance companies to augment their sales, service, and support services appreciably while companies which did not invest in this sector will have to overcome steeper hurdles.
The need to execute transformative initiatives regarding core systems, business intelligence and analytics, and customer facing portals and platforms has become imperative now. IT departments have to be ready with enabling systems and platforms that match market demands in the insurance industry.
Story tellers or people who are experienced in ways to apply context, have intuition, and can visualize the meaning of Big Data churned by data scientists will be in demand. The value that is buried in the information has to be converted into actionable context that can be understood and leveraged for making optimum business decisions.
CallidusCloud’s Big Data for Insurance looks at a complete picture of a carrier’s business including billing history, policy administration details, producer demographics, claims data and detailed customer interactions. The solution will provide visibility into what specific attributes or actions lead to customer cancellation to reduce churn, when bundle or upgrade offers are delivered to customers to improve average revenue per unit, and return on marketing spend.
Edited by Cassandra Tucker