April 18, 2021

The impact of big data on insurers

The impact of big data on insurers


We live in a world of revolution. The flow of data that exists today is brutal, and this has caused companies to have the unparalleled opportunity to collect and analyze information from their consumers. For some time now we have heard about techniques that aim at the detailed analysis of the client.

Techniques like bussiness intelligence, Artificial intelligence, Data Mining… And finally, the famous Big Data. But what is this about Big Data? What is different about the previous ones? In a way we could say that it is one more fashion, another name to refer to data analysis. I'm not an expert on the subject, but I do not think that's the case. Big Data is here to stay and to bring a lot of added value to the interaction between companies and customers. If someone asked me what it means, I would say that they are the set of techniques that make possible the processing of data based on 5 "Uves" that define their nature. We speak of a huge volume of data, which are generated at a speed difficult to calibrate, provide an incalculable value to the business and are characterized by the variety of their origin and the accuracy of the information they provide. 5 "V" who have come to change the world …

We collect information and try to analyze it, although in my opinion there is still a long way to go in terms of optimizing technologies and using all available tools. What we do know are two things: the first, that there is already a technology that allows us to analyze this information and the second, that there is an interest to maximize that information from the business point of view.

The key is to know how to analyze this data. This is what is going to mark the big difference, since the really valuable thing is knowing how we can get the most out of this information, the power to understand it to help us in the evolution of our business and, above all, impact in favor of the client.

One of the most valuable aspects of data processing is the possibility of predicting behaviors. For example, with proper treatment and analysis, we can know if a person intends to cancel their insurance policy, and from there offer solutions accordingly. There are amazing examples of how companies are already applying these new technologies successfully. For example, the Macy's stores in the United States, just before Black Friday, analyzed how many cars were parked in the parking lot and from there predicted the sales of the day, almost to the cent. You can not imagine the impact it has that two hours after opening Wall Street investors know what Macy's will sell that day.

Where else can this lead us? Through Big Data we can improve the customer experience, which for me is the fundamental paradigm of differentiation. These tools help us build better experiences every day, which result in the loyalty of our users. Our challenge as companies is to always exceed their expectations, to achieve their loyalty, their pride of belonging and, as a logical consequence, their recommendation. That is the magic cycle of what we call marketing. And that friends, is something that has no price.

The volume of information that currently exists is very high. A Domo investigation in 2017 revealed that 456,000 tweets are posted every minute, more than 3,600,000 searches are made on Google, and more than 4,146,000 videos are viewed on YouTube. According to the Data Age 2025 study, conducted by IDC, the total data volume worldwide will increase by 10 times by 2025. 90% of the data we have today have been generated in the last 2 years and, in 2019, the companies will generate 60% of the information worldwide.

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