For almost anyone, insurance is best when unseen. It’s always good news when there are no incidents to speak of; yet when disaster strikes, the best insurance providers jump right into action, with little prompting and as minimal effort as possible on behalf of the affected individual.
Kind of like data, when you think about it. You don’t have to see a slew of 1’s and 0’s to know that it’s being collected, and that – in the best-case scenarios – it can be properly applied without fuss or hassle. The true value of it running behind the scenes is difficult to appreciate until a moment in time when everything – and everyone – must come together, sharing unique information and strengths from different locations, origins and types.
But being unseen and being untapped are two very different things. For data – and insurance – to be valuable, beneficiaries must be equipped with the tools to take advantage of this resource. And the potential benefit is only realized when complex information is decoded and disseminated. Data insight, then, is like a top-notch insurance agent: intuitive. Personable. Well versed in a customer’s unique circumstances and background. Quick to act, fixing problems and finding creative solutions that may not have been originally considered.
Right now, in the world of insurance, data has the potential to link human ingenuity and resilience to online technological innovation, speed and power. Gone are the days when insurance was a staid, relatively static industry. Of course, brand reputation still relies as much on trust and reliability as it ever has, if not more. But the conditions for analyzing claims, applying predictions, creating risk models and deploying communications and support have greatly shifted. Within this shift lies opportunity.
The opportunity? The move from reactive to proactive business-as-usual.
Consider homeowner’s insurance, evolving to make use of IoT devices to better monitor homes and anticipate any range of maintenance issues, from a faulty pipe system to a malfunctioning fire alarm. New sensors and satellite data are even making it possible to assess onsite damage from a major natural disaster without anyone on the ground: meaning claims can begin to be processed during a crisis and in the immediate aftermath – in the moments of greatest need – instead of suffering frustrating delays that affect the peace of mind and quality of life for the insured as they await important news and next steps. And in the meantime, by cutting processing time, automation reduces costs and helps lower premiums: a win/win for insurer and insured, alike.
Being an early mover on this trend is an important proactive move on its own for insurers, and time is of the essence: 44 percent of insurers consider connected devices to be a driver of future insurance revenue growth; and, in 2018, 39 percent of insurers had launched or were piloting connected-home initiatives. Get in front of something that is good for business because it is good for customers at its core: With investments in IoT and the discipline of more rigorous data analysis that comes with it, new services and improved relationships are possible.
It is examples like these that remind us how technology can step in to expedite manual processes, so that human interactions can focus on care, recovery and service. This balancing act means that insurers can get things right with greater assurance: making their businesses more profitable and their customers’ needs the focus. When taking in available resources and setting up new systems for proactive measurement in the quiet, unseen moments, insurers can be swift to act when they emerge from the wings to handle events.
We’ve only just begun to skim the surface of what’s possible when it comes to data and the future of proactive insurance. Learn how Clarity Insights extends the value of your data for innovation you can see, in the ways your business needs it most.