Data analytics is one of the main and historic pillars of insurance sector. We have been using mathematical models to predict gain and loss for centuries. They collected data of their customers which helped them when they make claims. In recent years the technique has evolved and the insurers started to collect even more data about their customers and are updated from time to time. It helps them to improve the business by cutting fraud, eliminating handling time and improving customer service experience.
Leveraging advanced analytics and then incorporating them into business proves to be the best option in modern business. Making use of newly developed machine learning algorithms and adding to the data collected will help insurer in taking apt decisions.
Jaipur based insurance provider Shriram General Insurance is using analytics in various business fields including pricing, risk profiling of assets, fraud detection and digital distributions. Now, the firms digital service channels contribute to more than 80% of total business volumes. In the words of Neeraj Prakash, MD of Shriram General Insurance “Automation is going to see a lot of traction in the industry where a lot of activities are still manually-driven, despite a mess of systems existing within the landscape. We trust agile technology architecture, strong API based back-ends, AI, ML, RPA and business IT design thinking are going to be a game-changer for us within the coming year”.”
Mr Neeraj added, “We have also implemented a few predictive analytics engines in our ongoing journey from analysis to analytics. Increased use of knowledge analytics has helped us within the personalization of services and products to be provided to the customer and also in their pre-approvals.”
Now the analytics wing of Sriram insurance have professionals from Machine learning, neural network and business intelligence. The company plans to further improve the analytics usage by using artificial intelligence in areas like behavioural policy pricing, fast-track claim settlement, fast fraud detection etc. However, the main problem lies in detecting fraud.
Shriram general insurance use SAS for predicting descriptive analytics. It stands for statistical Analysis System and is a command driven software which is used for data visualization and statistical analysis. It is one of the widely used software in the industry.