Data analytics isn’t just for IT and the big companies anymore. Small business owners have always been at the forefront of innovation, including using data to make decisions in every facet of their business life. One area where small businesses can significantly benefit from data analytics is in their insurance policy, whether personal or commercial insurance. Small businesses can use data analytics to transform their insurance business into one that works for them.
Here Are Some Ways to Transform Your Insurance Business With Data Analytics
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Collect First Party Claims Data
Before you can get too deep into making big decisions based on data, you need to have actual data. Get your hands on first-party claims data – you’ll want both a sample of historical claims and month-to-month (or year-to-year) figures.
This will give you a baseline to start experimenting and creating forecasts of what’s next for your business. Keeping an eye on both types of data is essential for helping future guide decisions; understand what’s happening now while keeping tabs on where things could be headed.
For instance, if your claims seem high in one area compared to another area of your coverage (say, fire vs. water damage), it may mean something about how your agency works or how customers use insurance.
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Use Predictive Analysis Software
One of your essential tasks as a data analytics professional is to measure and assess the data by predictive data analysis software. You have incredible amounts of information pouring in from all over your business, but you must decide what’s valuable enough for your team to focus on.
Once you know what you want to measure, put a system in place to ensure those measures get captured accurately and in real-time.
For example, if you want your finance department tracking leads, set up an email autoresponder for leads that includes contact information on who will be responsible for following up. That way, nobody can forget about it or claim they didn’t know they were supposed to follow up on it.
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Put Measures in Place
You know that data-analytics-powered strategies are great for improving customer engagement and sales, but do you have a solid game plan? If not, you could be missing out on some key ways to drive results. Make sure you have clear goals in place before starting since they’ll help keep your organization focused on what matters most. You can also use a tool like Net Promoter Score (NPS) or Customer Effort Score (CES) for easy benchmarks. Both tools let you see how satisfied your customers are and where your business can improve.
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Look for Significant Trends
Before diving into analytics, it’s essential to take a step back and look at your historical data. You want to ensure that you have several years of information before attempting any deep dives into trends.
Sometimes trends pop out right away, and other times, you need a trained eye or statistical software like R, Python, or SAS. Google Trends can also help show what topics are trending online (and how much).
Many times, you’ll find there are specific keywords that could help determine a strong marketing strategy. Suppose auto repair shops were suddenly becoming increasingly popular. In that case, an insurance company might want to consider focusing on advertising for car repair services as well as tips for avoiding getting your car broken into in parking lots downtown during lunch hour.
Have a Good Understanding of the Industry?
You must have a good understanding of your industry. You need to understand what matters and what doesn’t, and know-how businesses in your industry are likely to behave and respond. You can get a lot of knowledge by talking to people in your sector – attend conferences, meetups or join user groups. Don’t rely on reading blogs or news stories alone; you should also talk to people face-to-face.
Benefits – In a Nutshell
- Save Time With Automated Data Entry
- Manage Your Business More Efficiently
- Analyze Data To Make Better Decisions
- Protect Your Clients And Make More Money
Bottom Lines
Most businesses now have access to more data than ever before. You might not even realize how much of it you’re generating, so tapping into that resource will give you an edge over your competitors. It’s a good idea to hire a data analyst who can create reports about what patterns and trends are happening in your industry.
Knowing what’s working and what isn’t allows you to make intelligent decisions about marketing and sales strategies. After all, if there are holes in your business model that need fixing, then it doesn’t matter how creative or clever your advertising campaigns are—the numbers will show up anyway. And once you see those trends emerging, you can adjust accordingly and quickly respond to changing customer needs or sales forecasts.
Insurance business owners are heavily investing in data analytics & visualization platform as they see advanced analytics as a technology that will dominate the industry in the upcoming decade. Early adopters of the technology have already experienced a massive impact on everything from claim handling to premium pricing. If you are interested in knowing how ITCube’s data analytics Software ITLytics can help your business gain a competitive advantage, reach out to us at inquiry@itcube.net