One of the most valuable applications for analytics is the ability to predict and address customer needs, in real time. This may have been an innovation a few years ago, but today it’s a necessity—and it’s compounded by customer expectations of cross-channel, cross-device experiences.
In this Insurance Chart of the Week, I’ll look at whether insurers are using data and analytics to react in real time. The short answer? They are not.
Most insurers are using analytics as a retrospective tool
The chart shows the results of the cross-industry sample, as well as the insurance-specific results. Among the total sample, the most common response (33 percent of respondents) was that data and analytics are used as a predictive tool. However, within insurance, only 23 percent of respondents say the same. In fact, within insurance, 44 percent of respondents said they use data and analytics as a retrospective tool.
These findings represent a significant opportunity for insurers. Analytics are a critical capability—not just for responding to customers, but also for enabling data-driven decisions across the enterprise. By tapping into the predictive power of analytics, insurers can achieve a competitive advantage.
- See Part 1 of Insurance Chart of the Week: Achieving Payback in Insurance Analytics.
- See Part 2 of Insurance Chart of the Week: Achieving Payback in Insurance Analytics.
- View other Insurance Chart of the Week videos.
- Find out more about The Digital Insurer: Achieving Payback in Insurance Analytics (pdf).
Is your organization able to react to customer needs in real time? Send me an email and let’s discuss your analytics strategy.