How can Insurance Companies Leverage Big Data
Big data paves the way for new business opportunities for organizations with innovative solutions. Many companies across industries are leveraging this technique for a transformative shift in their applications and services. The insurance sector is on the verge of a technological revolution to transform their business processes and services.
Insurance companies have started implementing many intelligent technology tools as the customers demand a customized service based on their requirements. Big data processing tools analyze large data sets to offer meaningful insights to the company. According to a report by The International Data Corporation, a total of 163 zettabytes of data will be produced per annum. This consists of both structured and unstructured data sets, which can be analyzed by big data tools to promise a wealth of information. Here are a few ways in which insurance companies can collect and use data:
Innovative Tools: Many insurance companies are adopting innovative ways to collect data. For example, drones that fly over disaster zones assess the damage levels and structural integrity of rooftops. This helps insurers to resolve the issues, helping the distressed policyholders quickly.
Risk Assessment: Big data processing tools can assess a data set to calculate the risk accurately. The analysis of data can also prove effective in fraud detection.
Customized Service: Big data tools can analyze customer behavior and provide information that can help companies to offer services based on a customer’s requirement. The tools can also analyze data sets from GPS-enabled apps, which will allow insurers to provide coverage like pay-per-mile insurance. These innovative and customized options attract consumers and business owners.
Adapt prices in real-time: Incorrect pricing can result in a loss of revenue. The insurance companies can analyze data on batched products, which will allow them to change prices according to the market trend and customer behavior.