How Can Insurers Benefit from BI in 2022?
Whitepaper Final Teaser: How Can Insurers Benefit from BI in 2022?
By Thomas Chesbrough
Coming fresh off of ITC 2021, there is great industry excitement about innovation, digital transformation, and other terms that have become commonplace across many industries when speaking about technology advancements. While there are a plethora of reports from management consulting firms, analysts, and other industry pundits driving these terms forward with greater specificity for insurance, there is still a lot of education to be done around the importance of insurance-centric data in the bigger picture.
To conclude our short series providing teasers about our whitepaper “Foundations of Insurance BI for the New Normal”, I will cover a few brief points. The first major point in this final whitepaper section addresses the issue of why insurers need a data analytics partner with deep insurance expertise instead of the horizontal large technology company selling the same BI platform to several different industries. 2022 is looking like a year that will continue some of the economic uncertainty of the last year and a half. This means that insurers must be smart about their technology spend, having real plans for how every purchase can improve customer relationships, growth, profit, and reduce risk. This section of the whitepaper classifies the majority of insurers today into two categories:
- Insurers that are too hesitant to try out insurance-centric or a horizontal BI solution or even begin looking at their data trying to analyze it internally. This type of insurer may be at serious risk of keeping the lights on in 2022.
- Insurers that have tested the waters internally and with an external horizontal BI provider. This category may have high-level insight, but not the intelligence to improve pricing, underwriting, and claims processes.
There are the outliers that are excelling in understanding every facet of their data analytics program, but these were likely first movers with other areas of technology advancement. The above two categories likely were not.
Cloverleaf’s definition of insurance analytics means having the right data with the correct details delivered at the right time with quality visualizations aligning with how a carrier wants to consume data insights. We believe 2022 is a year where it is realistic to expect the majority of insurers in category #1 to at least progress to category #2 but from an insurance-centric perspective. This should get insurers ready to realistically benefit later in 2022 and beyond like the outliers that have been insurance industry pioneers. If the industry can do this, then the predictions reports that we have been reading from the experts will be more likely to come true.
Having laid the foundation for this last section about how insurers can truly benefit from insurance BI in 2022, I encourage you to download the full paper on our homepage.
About Thomas Chesbrough
Thomas Chesbrough is Executive Vice President for Cloverleaf Analytics. He is a 35+-year insurance industry veteran that has served in the role of CIO for insurance carriers, has implemented information management systems for several insurance organizations, and managed multi-million-dollar development projects. As an insurance and technology pioneer of model office processing, Mr. Chesbrough has been a consistent influencer in how carrier policy systems and services evolve to create more effective workflows and improve customer satisfaction. Throughout his career, he has been entrusted with creating new systems and processes along with managing all phases of many complete lifecycle system development engagements.