Montreal, QC (July 2, 2014) – The Property & Casualty Industry is known to be very dynamic in terms of managing a book of business as most customers have an opportunity to switch from one carrier/broker on a yearly basis. This puts great pressure on decision makers to have the right management information. Therefore, data becomes the key to business performance for any insurance company as it optimizes strategic planning and helps increase operational efficiency.
The question is how to generate the kind of data that will help leverage informational assets. The answer: Analytics. Analytics uses technologies and processes to deliver information with maximum value out of the vast amount of data collected daily.
The benefits of Analytics for P&C are multiple. In fact, Analytics can help gain competitive advantage by accessing analytics and information to support the selection of a strategy (aggressive pricing, segmentation of risks, cross-selling, etc.). It can also insure operational efficiency by reducing frauds, for example. Predictive tools within the Analytics ecosystem will identify a pattern by correlating the key specific claims data to identify the likelihood of fraud. With this key information, business rules can be developed to trap the fraudulent claims.
In short, an Analytics program allows to implement efficient cost reducing strategies and market differentiation, but that kind of solution is also known for its high initial deployment costs which means it has to become self-sustaining over the long run.
It is critical to invest time in managing the adoption of the technology to get the expected return on investment. In fact, a corporate culture transformation must take place, as the new vision must embrace ideals of a user-friendly access to decision-making information and the empowerment of every level of management. A tailored change management strategy must also be planned and executed. Expectations must be tightly managed since the users of the Analytics program might not see a first application for months.
In brief, a better access to management information and analytics are necessary in today’s competitive environment. Even smaller carriers can now compete with bigger players through Analytics but for a P&C Analytics program to be effective a company must make sure to invest in technology, process and change management.
To learn more, read the InEdge article published in Claims Advisor: Delivering Value out of a P&C Analytics Program.
InEdge is a leader in Insurance Analytics solutions. Expert at quickly leveraging data, InEdge seamlessly and powerfully creates business advantage for its clients. Since its creation in 1994, InEdge has designed and implemented some of the most sophisticated analytical applications available today. Our clients add up to an impressive roster of Property & Casualty and Life insurance companies. Our Analytics solutions improve and make easier decision-making at all levels for our clients.