According to the last study about digital transformation in the insurance sector: “A New World of Opportunity, the Insurance Innovation Imperative” by KPMG, 83% of insurance companies say that their business’ future success lies in innovation. The same study confirms that 74% of these companies claim to lack the skills needed to drive innovation.
It is a fact that there is a race for innovation in all business sectors. And in the insurance sector, 48% of companies say they experience difficulties due to competitors more innovative than they are. That’s why 2/3 of insurance companies are looking for inspiration from companies in more innovative sectors.
As in other sectors, investment in new technologies is seen as one of the smartest strategies to follow in the coming years. 60% of insurance companies think that technology will be the sector’s great opportunity in the next 2 years. According to Gartner, only 5% of insurance companies are currently using Artificial Intelligence in business areas such as: customer service, production and fraud detection. There is still much to be done in the digital transformation of the insurance sector.
One of the most important technologies we can apply to improve companies’ Digital Transformation is Advanced Analytics.
These techniques achieve:
- To improve decision making (base decisions on data)
- To automate processes (saving time, processes and tasks)
- To minimize costs (in processes, labor ones, etc.)
- To maximize process efficiency (achieve more with less)
With data analysis, we can base business decisions we make on real information, not assumptions, instincts, or viewpoints. In this way, tools based on this technology can be implemented to automate and improve processes and minimize costs.
Descriptive Analytics through historical data shows us what has happened in a company and why. Giving us a general picture of what is happening in the company in a simple and easy to understand way. Predictive Analytics allows us to transform these descriptive metrics into a set of predictions and very precise trends that will tell us what will happen in the company in the future. And Prescriptive Analytics can identify the most optimal decisions taking into account the large volumes of data and the infinite variables and constraints.
