Other parts of this series:
- Leading L&H insurers are already reaping the benefits of big investments in powerful data analytics solutions
- Smart L&H insurers are using data analytics solutions to boost customer service and deliver impressive experiences
- L&H insurers step up digital innovation to ready themselves for huge market transformation
- Big L&H insurers are signing up partners to bolster their digital innovation programs
Organizations that are quick to adopt data analytics, and tailor their businesses to harness the technology’s full potential, gain significant competitive advantage. Several prominent L&H insurers are benefiting from their early adoption of data analytics.
Leading life & health (L&H) insurers around the world are investing heavily in data analytics. And they’re already seeing substantial business benefits.
Our research, conducted with the Massachusetts Institute of Technology, shows that organizations that adopt analytics early, and tailor their businesses to harness the technology’s full potential, gain significant competitive advantage. These progressive enterprises – we’ve dubbed them “high performers” – are nearly four times more likely to achieve substantial returns on their investments in analytics than other, less bold, organizations. They make smarter, more informed decisions.
Moreover, high performers, eager to harness the power of analytics, are prioritizing investment in this key technology. Around 56 percent of them invest more than a quarter of their annual technology spend on analytics. This compares with just 17 percent of other, lower performing, organizations. And there’s no sign of them letting up. Around 53 percent of high performers plan to increase their spending on analytics over the next three years. A mere 9 percent of low performers are looking to follow suite.
Our Quarterly L&H Digital Innovation Tracker shows that several prominent L&H insurers are benefiting from their early adoption of data analytics.
Swiss health insurer Suva has installed an analytics-based billing system that has improved efficiency and curbed costs substantially. Its Sumex solution uses sophisticated data analysis and statistical modelling to verify invoices and receipts from hospitals, doctors and therapists. Suva processes around two million invoices a year and reckons Sumex is saving it nearly €150 million per annum.
Kampo Life, the life insurance arm of Japan Post, is using IBM’s Watson cognitive computing system to verify insurance claims and improve workflow. The analytics tool draws on past examples, regulatory requirements and contract clauses to determine the validity of claims. It has substantially increased the speed and accuracy of claims reviews.
Smart use of data analytics has not only enabled carriers to increase efficiency and productivity. It’s also helped them enhance customer service. In my next blog post, I’ll discuss how L&H insurers are using this technology to forge closer ties with their customers.
Until then, take a look at this link. I think you’ll find it very useful.