For insurance companies, the integration of big data and analytics solutions with telematics technologies offers important opportunities to extend the use of telematics data beyond usage-based insurance (UBI) and improve competitive differentiation.
Senior leaders at Westfield Insurance realized that future success depended on gaining a better understanding of the performance of its business and its network of agents. However, driving a more analytical approach to decision-making would require not only new technology, but also significant cultural change.
Westfield began its analytics transformation by creating an Analytics Resource Center (ARC) and building a powerful data warehousing and analytics platform under the sponsorship of its CEO. With the help of IBM® Global Business Services®, the ARC team worked with the IT team and internal business partners to develop a range of new analytics applications.
Big data and analytics help insurance companies identify the next best action for customers. With the right solutions, companies can extract, integrate and analyze a large volume and variety of data, from call-center notes and voice recordings to web chats, telematics and social media.
Using IBM Smarter Commerce technology to help ensure timely response to policyholders.
“When customers contact us through their iPhones, Facebook, Twitter, LinkedIn or email, they receive the same timely attention as when they call the company or go to our web portal.” —Werner Kruck, chief operating officer, Security First Insurance
Today, two major factors are poised to change the insurance industry in a way it hasn’t seen in more than 50 years—emerging capabilities enabled by cognitive computing and big data, and an empowered consumer. We are starting to get a glimpse of the possibilities these trends hold, as well as the challenges they represent. To understand their full impact on the future of the insurance industry, we need to look at the past to understand how paradigm shifts in the insurance industry follow paradigm shifts in the underlying computing technology. If history is any indication, these technologies will usher in a new paradigm for the insurance industry.
Organizations today are collecting tremendous volumes of data, generated by a wide variety of sources, often at extreme velocities. This is “big data”—the millions of stock trades, call detail records (CDRs), social media posts and patient test results produced every single day. Leading organizations in many industries are adopting advanced technologies to generate new, actionable insights from big data that can help them dramatically reduce financial risks, increase operational efficiencies, enhance customer loyalty and improve healthcare outcomes.