Changing techs improving Risk Management for Insurance Companies

Emerging technologies create opportunities for insurance companies to improve customer experience, increase automation and solve risk management challenges in new ways.

In India, insurance companies are always found searching for best possible risk management solutions to improve their systems and functioning. The main advantage of risk management for insurers is that it emphasizes on the practical risk management concept rather than technical concepts and detailed theory which makes it easy for a layman to understand. Policy holders reduce uncertainty by passing risk to insurance company.

The major uncertainties revolve around how many claims will be there and how much the insurer will have to pay to settle them. These uncertainties help insurers to charge for protection provided and how much the insurers need to reserve for future claims’ payments. LexisNexis Risk Solutions help insurers in India with data, analytics and technology solutions to cope-up with these risks. The company’s solutions help insurers detect patterns, analyze behavior, identify opportunities, combat fraud, better understand risk and improve profitability. The company claims to add value throughout the insurance lifecycle – from application to claim.

Technology is playing a key role in insurance sector

Technology is an essential part of the insurance industry. In order to stay ahead from all the challenges, one must be flexible, agile and use advanced technology to curb the traditional methods. Today, clients’ demands are very different from the past and hence, one must have to deploy the right kind of technology for daily business processes.

“Insurers need technology to automate and be more efficient in their workflow processes, to make decisions faster in order to improve customer service and to tap into information that helps them better understand their customers and prospects, accurately identifying and managing risk. While most global insurers are challenged with much-needed major system upgrades around the globe, they need cutting edge data analytics to stay on the forefront of innovation” said Calvin Barber, Vice President, Technology, LexisNexis Risk Solutions.

“At LexisNexis Risk Solutions, we help leading insurance companies automate and improve critical business processes, reduce expenses, combat fraud and gain pivotal insights to differentiate and deliver higher levels of customer experience across multiple lines of business. The company combines cutting-edge technology, unique big data and advanced scoring analytics to provide solutions to address evolving client needs while upholding high standards of security and privacy. We offer a data-centric approach and proprietary linking technology to help the insurance sector address these needs above and to better serve their customers with insurance products that help protect individuals and businesses from loss,” he added.

How big data analytics empowers insurance companies

According to Barber, big data analytics empowers insurance companies to gain insight which otherwise get obscured with traditional approaches. With this insight, insurance companies can provide better customer service, retain their customers and better manage the risks in their portfolios.

Emerging technologies create opportunities for insurance companies to improve customer experience, increase automation and solve challenges in new ways. They also create questions: how does an insurer take advantage of the explosion of data to build more meaningful relationships with customers? How much do machines replace resources or can they complement the work we are doing?

“There was consensus at a recent UK insurance conference that the industry is getting better at investing in IoT, data analytics partnerships and interesting propositions, either by direct investment, co-production or procuring services as necessary. Building advanced analytics, for example, from one simple use-case to a new use-case is becoming easier and doesn’t always require a big bang approach,” Barber said.

LexisNexis uses HPCC Systems, an open source, massive parallel-processing computing platform for big data processing and analytics, enabling businesses of all sizes to better analyze and understand data at scale, improving time to results and decisions. The platform delivers superior performance, agility, and scalability, and has been proven in mission-critical big data “production” environments for over a decade. The platform is built on the premise of absorbing data from multiple data sources and transforming them to a highly intelligent social network graphs that can be manipulated to extract the non-obvious value. From one single point of entry, all the data is linked, un-cluttered and placed into a comprehensive database.

He concludes by saying, “Our motor insurance solutions assist automotive insurers in growing their book of business and increasing their competitive strength with a better understanding of their customer portfolio and underwriting risk. Our life insurance solutions assist life insurers in streamlining marketing and underwriting operations through automated data and analytics - driven insights, while intercepting and reducing fraud.”