Business Intelligence in Insurance
SUCCESS IN TODAY'S BUSINESS world is defined by the ability to access sophisticated data and derive information that is now primary need to survive in the competitive market place. This is also true in insurance business that deals with rich and complex data structure and most of them are real-time. So to compete in the volatile market place with high customer demand information is pre-requisite. This makes insurance companies using Business Intelligence tools like data warehousing, data mining and OLAP. Use of BI supports in targeting right customer and the reason for customer depreciation.
Business Intelligence (BI) in insurance helps in better management dealing sales force, marketing, improving actuarial and underwriting functions. This really enhances the ability to convert raw data into valuable information about customer, market, customer, competitor and overall business environment. With growing competition insurance companies are offering new products out of traditional ones. The products are categorized as property & casualty and life insurance. Life insurance is again divided into life, health and other products in installment basis. Also companies are trying to be more particular about customers rather products; focus is now on customer’s requirements. To manage all customer and product related queries a large amount of information is need and hence the technology of BI.
Business Intelligence is proved to be beneficial in overall management including corporate, HR, finance and asset. Asset and finance management deals with actuarial, underwriting functions, policy and customer claims. All these are important components in the business process and should be done with proper calculation and analysis by using various BI tools. As far as customer relationship management (CRM) is concerned it is important to gather and analyze data that helps in preparing strategies for developing new products and service to meet the changing needs of the customer.
With a varied application from corporate management to CRM business intelligence is now one of the integral part of the decision making process. After accessing data from various sources BI tools are used to find out the best customers, their requirements after analyzing data from various related fields.