Data analytics creates new possibilities that can empower insurers to optimize every function in the insurance value chain with the help of data-driven decision making.
AI in insurance utilizes behaviour-based analytics and credit scores to determine which of the customers are bound to pay their bills on time.
It can also detect fraudulent activities and hence using data for determining the right and trustworthy customers is shaping the digital transformation of insurance companies.
The top use cases where data analytics can help insurers are
- To develop an enhanced customer experience
- Design products based on customer behaviour
- To improve Risk Management Strategy
- Minimize the risk of insurance fraud