For many claims departments, the problem isn’t data — rather, the challenge is what to do with it. Insurance companies, for years, have become adept at generating data suited for further analysis and insight. However, they’ve encountered challenges in collecting it effectively and then putting it to work. With 78 percent of carriers planning to upgrade their claims systems in the next three years, according to recent Accenture survey results reported by Insurance Networking News, the industry now has a unique opportunity to address both the problems and the opportunities associated with Big Data.
According to the survey results, 66 percent of claims executives believe their current systems “are not optimized to collect and analyze the growing volume of data available,” with social media data on the list of information that carriers would like to include to improve claims management.
Beyond capturing additional data — from foreclosure information to license plate reader data — that could help the claims process carriers need to integrate it quickly and effectively with claim records to decide which claims to fast-track and which warrant further investigation. Improving the actionable information about a claim can lead to considerable cost savings through the accelerated processing of meritorious claims as well as in the prevention of hasty payment when suspicious activity is a concern.
Of course, there are benefits beyond having the data available case by case. On a much larger scale, applying analytics to an enormous collection of data — spanning the U.S. property/casualty industry — can lead to conclusions that wouldn’t be evident from a company’s own data. Further, it provides intelligence for predictive analytics, which helps identify suspicious activity in its early stages and can prevent premature payments and significant fraud-related losses in the future.
Two-thirds of the U.S. property/casualty insurance industry may be looking into using Big Data to improve claims handling. How will your company differentiate itself? Predictive analytics can help, and linking those applications to ISO ClaimSearch® will accelerate the improvements.