Big Data Helps Insurance Companies Create A More Protected World
One of the most data-driven industries in the world is the insurance industry. If you think about it, the entire business model of insurance companies is based on pooling the perceived risk of catastrophic events in a way that is viable and profitable for the insurer. So it’s no surprise that one of the earliest adopter of big data technologies like Hadoop has been the insurance industry.
Insurance companies serve as a fantastic example of big data technology use since data is such a pervasive asset in the business. From a cost savings and risk mitigation standpoint, insurance companies use data to assess the probable maximum loss of catastrophic events as well as detect the potential for fraudulent claims. From a revenue growth standpoint, insurance companies use data to intelligently price new insurance offerings and deploy cross-sell offers to customers to maximize their lifetime value.
New data sources are enabling insurance companies to mitigate risk and grow revenues even more effectively. Location-based data from mobile devices and sensors are being used inside insured properties to proactively detect exposure to catastrophic events and deploy preventive maintenance. For example, automobile insurance providers are increasingly offering usage-based driving programs, whereby insured individuals install a mobile sensor inside their car to relay the quality of their driving back to their insurance provider in exchange for lower premiums. Even healthcare insurance providers are starting to analyze the data collected by wearable fitness bands and smart watches to monitor insured individuals and inform them of personalized ways to be healthier. Devices can also be deployed in the environment that triggers adverse events, such as sensors to monitor earthquake and weather patterns, to help mitigate the costs of potential events. Claims are increasingly submitted with supporting information in a variety of formats like text files, spreadsheets, and PDFs that can be mined for insights as well. And with the growth on insurance sales online, web log and clickstream data is more important than ever to help drive online revenue.
Beyond the benefits of using new data sources to assess risk and grow revenues, big data technologies are enabling insurance companies to fundamentally rethink the basis of their analytical architecture. In the past, probable maximum loss modeling could only be performed on statistically aggregated datasets. But with big data technologies, insurance companies have the opportunity to analyze data at the level of an insured individual or a unique insurance claim. This increased depth of analysis has the potential to radically improve the quality and accuracy of risk models and market predictions.
Informatica is helping insurance companies accelerate the benefits of big data technologies. With multiple styles of ingestion available, Informatica enables insurance companies to leverage nearly any source of data. Informatica Big Data Edition provides comprehensive data transformations for ETL and data quality, so that insurance companies can profile, parse, integrate, cleanse, and refine data using a simple user-friendly visual development environment. With built-in data lineage tracking and support for data masking, Informatica helps insurance companies ensure regulatory compliance across all data.
To try out the Big Data Edition, download a free trial today in the Informatica Marketplace and get started with big data today!