28 November 2021

How Data Analytics and Artificial Intelligence solutions are revolutionizing the insurance industry

In recent years, disruptive technologies have played a key role in innovation in most sectors. Agility, speed, innovation, profitability and competitiveness are the words that best define a business that bets on the most innovative technological solutions.

In the insurance industry, the adoption of Data Analytics and Artificial Intelligence (AI) solutions has allowed companies in the sector to provide an excellent customer experience, develop products and services adapted to their needs, greater agility and efficiency for the business, as well as an improvement in operational efficiency and automation of processes, preservation of the integrity and security of data and operations, in addition to raising the quality of service.

Competition, regulatory changes, the need for greater control of fraudulent situations, increased presence in digital, and large data growth, are some of the challenges facing the sector. As a result of its activity, the insurance sector gathers a large volume of sensitive and essential data for organizations.

Insurers need accurate, reliable and real-time information to have greater control over operations, reduce costs and develop effective strategies, thus being able to gain greater competitive advantages over other market agents.

In addition to reducing time and costs, Data Analytics and AI solutions bring accurate and highly reliable information, considerably mitigating potential risks and threats. The information available, from a real-time analysis, allows for greater knowledge of the customer and strategic decision-making based on accurate, current and structured insights, in addition to enabling a targeted offer of products and services and prices for most suitable policy.

In a constantly connected world and where success also depends on the ability to provide immediate responses to an increasingly demanding customer, the insurance industry is also increasingly paying attention to digital channels, in order to provide a more personalized and quick response to the customer.

There are relevant changes that are being triggered by several factors, among which the considerable advances in technology, the emergence of new forms of insurance and products, as well as the growing focus on cybersecurity stand out.

The sector is evolving in a strategic and innovative way, seeking to make the most of existing data to assist in strategic decision-making.

In the future, services and products are expected to be more focused on the real needs of customers, with premium prices adjusted to usage. Consumers thus expect cheaper and better coverage, in addition to highly personalized services. Meanwhile, insurers are taking on more accurate risks, stable margins and happier customers.

These factors reiterate the need for new approaches to analyzing information in the sector. Prevention and transparency in the relationship with customers are, today, differentiating factors and this is only possible with the adoption of efficient solutions that offer competitive advantages to organizations.

 

  • Opinion article published in ECO SAPO – November, 2021

 

 José Oliveira BI4ALL
  José Oliveira         
        CEO     

 

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