How cloud analytics will transform the insurance business
Cloud analytics is now a driving force in the insurance industry, as discussed at IBM’s World of Watson. That’s because emerging trends in cloud data, analytics and cognitive computing hold tremendous power to offer deeper insights into fast-changing customer behavior and market patterns and arm insurance leaders with the tools they need to succeed in the future.
A 2015 Gartner study indicated that more than 6 billion high-tech devices expect to be connected to the cloud within the next few years, including a wide range of mobile options from wearables to connected automobiles. The implications are stunning. Looking ahead, insurance industry leaders will have access to an unprecedented range of insights and information, courtesy of cloud analytics and mobile devices that promise to fundamentally reshape the business.
Health and wellness activities
Health and fitness trackers can now monitor activity levels, heart rate, sleep patterns, calorie consumption, steps taken and more. Using a growing range of devices with these capabilities — especially smart watches and wristbands — insurance providers can gain deeper knowledge and understanding of users’ overall wellness and exercise habits and better tailor plans and discounts to specific audiences and individuals. Equipped with this information, these enterprises can also promote greater fitness and exercise habits in consumers, drive greater engagement in employee wellness programs and help minimize costs related to medical claims and incidents.
Driving safety and habits
Auto insurance carriers can also enjoy the benefits of cloud analytics by working with mobile apps and devices to track drivers’ usage habits and patterns. Insights gained can help provide in-depth understanding of individuals’ and groups’ risk profiles, their willingness to engage in safe driving habits and overall safe-on-the-road performance. The information gleaned from these programs — which are often designed to offer drivers discounts in exchange for their willingness to track and share this information — can be hugely helpful when managing risk. Likewise, they can also be tremendously useful when it comes to crafting insurance programs to better meet the needs of specific demographics or individuals.
Policy processing and claim handling trends
Many insurance providers now offer users mobile apps that let them file paperwork, secure policies or even process claims from their smartphones, tablets and other portable devices. Not only can tracking this data help insurance leaders gain insights into emerging trends, but it can also help them determine where greater potential for cost savings and efficiencies exist and predict emerging areas of opportunity or concern as customer needs and market trends begin to shift.
Marketing and advertising insights
In addition to measuring brand awareness, cloud analytics tools can now help insurance companies measure which marketing, advertising and communications campaigns are best resonating with consumers. Using these solutions along with mobile apps and devices, it’s possible to track which messages and pricing programs are most successfully connecting with shoppers and even redesign or update outreach programs and solutions on-the-fly to be more effective. Using cloud analytics tools and mobile devices, you can now measure how effective every promotional dollar is and where to focus efforts to most readily affect your bottom line.
Insurance companies will find that cloud insights can help benefit their businesses in a number of ways, including the following:
- Improved capabilities in terms of predicting customer needs, anticipating changes in the marketplace and preparing for impending shifts in shopping or usage habits.
- Enhanced ability to gauge and manage risks and better tailor insurance programs and packages to specific audience demographics or individuals.
- Better visibility into areas where potential cost or performance gains can be enjoyed, emerging areas of opportunity or concern and possible ways to streamline operations.
- More reliable ways to determine what’s making an impact with customers, and refining or replacing these strategies as needed.
- Greater ability to innovate and develop new solutions, faster and more efficiently than ever.
Cloud analytics can help transform the insurance industry and change how many leading providers do business. Between the extensive insights and predictive capabilities analytics provides, it’s no surprise that so many market leaders are increasingly turning to this information when looking to craft the solutions of tomorrow.