By Randy Croce, TCS Financial Solutions
Emerging technology integrates into customer service, underwriting, risk management, billing, actuarial services, claims management, loss control, special investigations, sales and marketing.
Here are five ways that insurance companies can benefit from integrating Location Intelligence into business processes and technology solutions:
Understanding the customer
The location of a customer greatly enhances the quality and efficiency of profiling, sales forecasting, segmentation and prospecting. By embedding location preferences into customer interactions, insurers also become better at providing the right level of service through the right channel, at the right time for the right product at the right price. Insurers can create niche or customized insurance products based on the instant and direct feedback from consumers that location data provides.
Identifying societal trends
The broad trends that can be seen in Location Intelligence can transform the way that insurance companies interact with their customers. Aggregate location data can identify revitalized or deteriorating areas of cities for actuarial analysis, highlight areas with a high density of customers within the broader population for marketing purposes, and determine patterns of pollution or ordinance violations to support more careful underwriting.
Improving catastrophe and event management
Lives are saved and economic damage minimized by improved rapid response to large scale disasters like hurricanes. Weather-related data regarding severe storms can be integrated into other insurance systems to predict the number of customers impacted as well as the exposure to a book of business.
From predicting the impact of a hurricane on a book of business to determining communication preferences of customers, Location Intelligence has become an integral technology solution throughout the insurance business. Location Intelligence cross-pollinates two separate but harmonious technologies: Business Intelligence (BI) and Geographical Information Systems (GIS). BI captures raw business data and turns it into insightful and predictive information, while GIS renders environmental data into an intuitive visual display. The combination of BI and GIS results in powerful applications extending into mobile technology and social media, making Location Intelligence a critical cornerstone to the digital strategies of insurance companies.
Preparing field services planning and tracking
Knowing the best way to allocate field personnel for claims management is not only critical during a disaster, but it’s also a key element of ordinary, day-to-day loss control and prevention. By optimizing routes for building inspections and on-site premium audits, Location Intelligence reduces operational costs. In addition, the ability to provide faster service greatly improves customer satisfaction, which in turn minimizes litigation costs.
Detecting and preventing fraud
Exploration of the discoverable links between individuals and organizations yields valuable data about the structure of a network, through which patterns can be identified through commonalities in geographical area, time, frequency and associating links. Advanced modeling techniques can determine the likelihood that a given scenario should be investigated further for potential fraud.
For insurance companies, a complete embrace of Location Intelligence enables new opportunities and process efficiencies that accrue quickly to the bottom line. Location Intelligence contributes to the development of a flexible product portfolio with smarter pricing and risk awareness. With improved market knowledge and a more intuitive customer experience, Location Intelligence translates to increased customer retention, the ability to attract a broader customer base, and an improved hit ratio for sales personnel. TCS BaNCS for Insurance includes comprehensive Location Intelligence capabilities that serve as a foundational component of the digital strategy for our insurance customers.