Big Data for Life Insurance and Annuities Opens Up New Value Propositions

The insurance industry is a profession that is well positioned to benefit from emerging Big Data analytics resources. Big Data is more than a buzzword it is the exploding volume of data that is flowing throughout the information systems of the world and you can integrate it into business processes.

According to a 2014 Cap Gemini report, ninety percent of the data in the world appeared in the last two years, and eighty percent of this is data has no inherent structure, which means that the rate of data creation is accelerating dramatically; the sources are disparate and mostly disorganized. Business leaders are beginning to extract value from Big Data by connecting advanced software that analyzes it for the useful information that hides within it.

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Big Data In The Business Of Life Insurance And Annuities

Big Data has potential uses in the insurance industry because of the available technological capacity to process more data and do it faster than ever before, which means that you can create software to arrive at conclusions from statistical data with greater certainty. Using more data and reaching higher levels of mathematical certainty is something that insurance industry competitors are always seeking.

Applying better tools for statistical analysis is an excellent way to gain an advantage in the insurance sector today.When you bring vast quantities of data under your control and turn it into actionable business intelligence; this is natural for insurance enterprises that already work with life policies and annuities.

Work The Numbers To Create A Big Value Proposition

The insurance industry is transforming business models to accommodate Big Data you can use it to do a diverse range of things. For example, you can personalize policies for clients with no concern for the volume of data involved. There are many ways to improve your value proposition and customer relationship management to transform your operations.

Big Data analytics allows you to restructure your underwriting process and improve the statistical validity of your risk calculations. The Cap Gemini report on Big Data in life insurance points out that analytics are finding use throughout the insurance value chain: In the front office, policy administration and underwriting, and in claims processing for life insurers.

Predictive analytics will help you can discover the data patterns that indicate dissatisfied or disinterested policyholders and develop a program to reduce your customer retention risks. Other opportunities that you might identify include finding undeserved markets, matching new services to existing markets, or cross-selling opportunities hidden in the data.

There are more sources of data to include in underwriting decisions than ever before. One of the core tasks in processing Big Data is finding the patterns and connections in data points that come from disparate sources; this could be from multiple mismatched databases or the unstructured data mentioned above. Your software will have to find the shared features and apply a structure; this might use machine-learning algorithms and add it to your master database.

Add Big Data Functionality One Component At A Time

There are as many applications for Big Data analytics in the insurance business as managers and actuaries can dream up. So, how do your bring big data into your current insurance software platform? You can integrate the functions of Big Data while retaining legacy software that continues to perform useful work.

One of the best ways to add any new features to your information systems is by integrating components that use the service-oriented architecture (SOA). FAST Technologies specializes in SOA for life insurance and annuities companies. Contact us to find out what Big Data analytics and the right SOA can do for your life insurance and annuities business.

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