Beware the data decision gap, insurers told
Many insurers struggle to interpret the “astronomical” levels of data available to them, and this creates a “decision gap” that prevents delivery of personalised services to customers, as well as accurate addressing of fraud, financial crime and other categories of risk, reveals analytics software company Quantexa.
Almost all insurers face “significant side-effects” from this data decision gap, Quantexa says, and fail to leverage data for effective strategic and operational decision making.
“Australian insurance providers hold astronomical volumes of data, amplified by increasing digitisation in these sectors in response to the pandemic,” Regional VP Asia-Pacific Shaun Mathieson said.
“Many struggle with interpreting, analysing and leveraging that data to drive high quality strategic decisions. This fosters a data decision gap, and stands in the way of establishing a single view of their customers.”
Quantexa’s inaugural Data in Context report reveals inability to bring together internal and external data is almost universal. Based on interviews with 50 decision-makers at Australian banks and insurers, only 10% had a rich, single view over their data.
The research says the data decision gap happens when datasets are inaccurate and incomplete, as this means it is hard for organizations to fully trust their data. Over a third of insurance organisations cited this as an issue.
Financial institutions in Australia are leaning on outdated data management, creating customer retention problems due to errors or lack of insight, as well as hesitation to automate decision-making, compliance issues and an incomplete view of risk, such as credit or supply chain risk.
Just 4% of all those interviewed stated their organisations have access to data that is easily connected, with data quality and duplicates under control. Over a third said their single view solutions become replicas of siloed data as they can’t provide the full context needed for effective decision making.
“Once information is connected, insurers are able to get a handle of their data to establish that single view of their customers, allowing them to extract real-world intelligence for informed and accurate decision-making to bolster CX and reduce operational risk in areas such as money laundering, fraud and credit exposure,” Mr Mathieson said.
Quantexa says its technology helps uncover the connections between events, such as applications, claims and policy renewals, as well as people, places, and organizations.
“With context, you can make faster, more accurate decisions. Spot opportunities, detect risk, improve the customer experience,” it says.
“Provide accurate insights to operations teams from agents and underwriters to claims handlers and investigators through connected internal and external sources.
“Find links to potential prospects, upsell and cross-sell to existing customers, and pre-empt churn before renewal,” it says.
It also says the technology can spot fraudulent claims earlier, identify policy abuse and prevent internal fraud, as well as confidently pay more legitimate claims.
Insurance firms can use its Contextual Decision Intelligence platform to improve decision making, prevent claims fraud, achieve dynamic pricing, and enhance prospecting and sales.
See the full report here.
