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Nathan Golia
Nathan Golia
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4 Ways Big Data is Changing Claims

Pegasystems insurance industry principals see big data and analytics capabilities getting insurers closer to gleaning actionable insights in real time that both maintain a positive claims experience and provide business value.

Last week, I spoke with Thomas Harrington, Industry Principal - Global Property & Casualty Insurance, and Gary Kirkham, Principal, Insurance Industry Solutions at Pegasystems about how big data and analytics are impacting claims. Here's some of what they're seeing:

  • Data is helping to differentiate the clams experience It's no secret that the claims experience is largely positive across the board, as Ernst & Young recently reported. But unlike Ernst & Young's Dave Hollender, who doesn't see much opportunity for differentiation on the claims side, Kirkham believes that through analytics, insurers can try to find ways to make theirs stand out from the crowd.

    "Insurance companies are always interested in customer retention," he says. "Knowing that when a caller calls, that as they describe their situation, the representative will have the data to say, 'This is our next best action,' is important."

  • Claims data is being used across the enterprise The information gleaned from customer claims can be turned right around to inform underwriting and product design decisions, Harrington notes.

    "There's an information silo that's existed between the back-end claims and up-front underwriting organizations," he explains. "How do you use claims information at some point to make decisions about what the right way to approach a risk?"

  • Analytic insights are coming in real time Gone are the days when data was processed over days or weeks. Now, big data capabilities are enabling insurers to make changes to processes on a next-situation basis.

    "Whatever was the last input in the process, we want to us that data to understand and refine the next decision," says Harrington. "Use the data you have avail to you and understand what their needs might be and make every interaction unique."

  • New ways to approach claims leakage Insurers always have an eye toward what they're paying out in claims, Kirkham says. Big data and analytics allow them to find new opportunities for savings.

    "It's good that the customers are satisfied, but they always have an eye on what we're paying out in claims," he explains. "For example, in life claims, the insurer is using that info to make good decision about asset retention. So an insurer can use data to know that caller's needs and to give the callers options as to how the funds from that contract can be reinvested into their firm. For the companies that do that well, it's a great opportunity."

Nathan Golia is senior editor of Insurance & Technology. He joined the publication in 2010 as associate editor and covers all aspects of the nexus between insurance and information technology, including mobility, distribution, core systems, customer interaction, and risk ... View Full Bio

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