Commercial Insurance Analytics Driven by Digitisation of Value Chain
General Insurance is a data-intensive industry where the quality of service and delivery is dependent on how insurers generate, store, and utilise data. Every link in the value chain is now touched by digital devices, which continuously generate tremendously useful data. In the past decade, the industry has seen a massive surge in technology infusion around managing data and carving out analytics insights. While most of the industry participants have realised the need to have a data strategy in place and many have already taken steps towards a transformative journey, the hidden and laggard segment in the industry is commercial insurance, like group health, fire, marine, engineering, etc.
While digital infrastructure and technologies have evolved tremendously in the last decade and offer enormous possibilities, the ability to leverage them is severely limited by the way industry participants perform transactions. Commercial insurance mostly follows the RFQ to Quote journey and is typically managed by brokers. The journey for large quotes is mostly manual, and the touchpoints are mostly email. To further constrain the journey, the products in the commercial segment are inherently complex. Off the shelf, digital technologies are in most cases not suited to consume this unstructured, fragmented, and asynchronous data. Unlike the retail segment, insurers and brokers get challenged and constrained by having data-driven intelligence and a 360-degree view when it comes to the commercial segment.
Digitization of the RFQ-to-Quote journey and transforming legacy processes to complete the digital journey for the commercial insurance segment becomes a natural imperative. This will not only radically improve underwriting effectiveness, improving profitability, but will also radically improve productivity and service delivery, improving the cost structure and scalability of businesses.
Digitization of commercial insurance value chain will enable industry participants to leverage analytics, leading to:
- Faster and Better Product Development
- Speed to Market
- Improved Underwriting
- Sharper proposition
- 360-degree customer view
- Better Sales Pipeline Management
- Effective Budgeting
- Cost Management
- Productivity Management
- Faster Information Recall