In today’s data rich environment, everyone knows there is value in data and analytics.
The trick is to harness them effectively to deliver genuine value.
Much of the focus of insurtech activity is based on the latest shiny start-up.
The truth is that start-ups often struggle to gain traction as they do not always fit neatly with the processes and procedures desired by the insurance industry.
Often the greatest, easiest to implement, technology benefits come from utilising technology that has already proved its worth.
When proven technologies, utlising up-to-date software, work together, sometimes supplemented by start-ups, you can both realise new opportunities from data analytics and be confident that your core processing capabilities remain robust.
The experience of the teams that sit behind proven technologies makes a big difference to the ability to effectively implement and integrate solutions.
At BAIS insurance technology, the professional services team developing solutions has 400 years of technology and 200 years of insurance experience.
The ‘least’ experienced IT member in the team has over 20 years of knowledge with the team averaging of 14 years in insurance — and this does not include the wealth of expertise amassed by the business leaders.
STEPS TO VALUE
One example of a client for whom this experience can be beneficial is underwriters, who are constantly looking to improve their risk data to provide more accurate pricing and program development.
Brokers also want to be able to see everything that is happening with their clients and the policyholder is keen to have a transparent and efficient customer experience, from policy to claim.
We’ve termed this, the virtuous circle of underwriting and claims. It can be summed up by the follow steps:
- Fully integrated claims and policy — full, real time overview of a client’s insurance program including granular detail of any claims
- Improved customer experience — in managing tradespeople, claims approval and policy details to assist smooth claims and policy administration processes
- Real time policy and claims view details — enabling brokers and clients to be able to see exactly what stage their claims are at and the relevant policy information
- Enhanced underwriting data — not just a basic description of a claim, but exact specifications of work carried out and issues found, all provided in data points that can be integrated with underwriter systems
- Better pricing — all this data comes together to enhance underwriters’ understanding of clients and portfolios, delivering more accurate risk pricing that can be updated instantly
Done well, using the latest technologies, coupled with a deep understanding of both technology and insurance, this kind of solution should be cost effective, fast to implement off-the-shelf, with a minimal need for IT department resources.
Here at BAIS insurance technology, we’ve been working on strategic partnerships to deliver the industry a virtuous circle.
For example, by integrating the power of iBAIS, the insurance system, with Wilbur, a modular and connectable ecosystem of claims technology products, clients, brokers and underwriters can see all policy and claims information in real time that then delivers a new level of risk detail to assist underwriters.
Circling back to the value in proven technologies, these two systems, process $3.5 billion in premium annually and have managed over 590,000 claims.
By definition, start-ups have had limited opportunity to learn from their data, in comparison to proven technologies who have a massive amount of data, with new data being constantly generated that can all be used to hone and develop new technologies.
MAKING IT EASY
There is a myriad of different technology solutions available to the insurance industry. Most of these are seeking to provide new solutions to niche areas.
While there are undoubtedly some great advances on offer, it can be bewildering and hard to decide which solutions to implement for all shapes and sizes of companies.
However, by working together these different technology solutions have the power to deliver more comprehensive offerings to the insurance industry producing benefits far exceeding the sum of the component parts.
Finding partners, such as Wilbur, who can add combined value, is a key focus for BAIS’ ongoing drive to deliver insurance technology with integrity.