Advantages Of Data Analytics For Insurance Sector

Often considered as a high-risk industry, businesses in the insurance domain have always relied on statistics to make key decisions leading to optimizing claims processing, risk reduction, fraud detection, etc. The insurance sector has seen a monumental shift in the past decade due to technological penetration. With the introduction of advanced analytics and affordability of different Data Analytics & Visualization Platform business analytics and key stakeholders in the organizations are turning to actionable analytics in the hope of eliminating risks and finding newer ways to grow their business and gain a competitive advantage over their industry peers.

In today’s blog, we take a look at how insurance businesses can use data analytics software to their advantage and escalate the process of orchestrating desired business outcomes.

Identifying Fraudulent Claims

In a report published by Gartner, it was observed that insurance companies suffer annual losses estimated to be close to $40 billion every year due to fraudulent claims! Only 20 percent of these claims are detected leading to massive loss of time and money for the agency. Recently, companies are turning to various data visualization platforms to create meaningful reports that produce actionable insights and help identify fraudulent claims by leveraging predictive analytics and behavioral patterns.

For example, an insurance company leveraging data analytics can easily spot excessive medical billing fraud by comparing similar surgical cases for hospital and medical charges. These data-driven insights can easily lead to savings worth millions of dollars, thereby justifying the investment in data visualization software.

Real-Time Risk Assessment

Effective risk-assessment is the backbone of every successful insurance business. Today, advanced data analytics tool plays a crucial role in accurately identifying risks associated with the policyholder and the type of the insurance thereby providing real-time insights that help the agents to calculate a profitable yet competitive premium to the customer. This has been particularly important for companies that offer vehicle insurance. With internet-powered vehicles collecting data 24×7, insurance providers get access to key information such as braking patterns, the average speed, that can unlock hidden insights into the policy holder’s driving. If the data collected from the individual’s vehicle suggests irrational driving patterns, too many speeding violations, the policy managers can increase the premium after considering the factors associated with different risks.

Beginner Guide to Business Insurance

All businesses look for profit maximization and risk minimization and an insurance does the latter for you. It reduces your risk of paying for unexpected damages and offers risk management services to safeguard your company or business from threats, perils, tragedies, etc.

An insured business can

Be safeguarded from potential risks
provide benefits to employees
Focus on business goals
Reduce unwanted stress.
BUSINESS INSURANCE provides coverage to your company against any damage or loss through theft, sickness, accidents, injuries or deaths.

YOU NEED BUSINESS INSURANCE TO

To manage risk and safeguard from natural hazards
To adhere to the law
Protect your employees with insurance
To ensure lawsuit and settlement coverage
To share only risk, no profit.
To secure copyright
Gain new and retain old clients with credibility
To retain your employees
It is a pre-requisite in most business contracts
Its not one size fits all
Insurance offers BOP ( Business Opportunity Plans )
For liability protection
Business Insurances are not One Size Fits All, they are customized based on what is most needed for your company. DIFFERENT TYPES OF BUSINESS INSURANCE AVAILABLE ARE –

1- Product Liability insurance
2- Vehicle Insurance
3- Home Based business
4- Worker’s compensation
5- Property insurance
6- Professional liability insurance
7- Business interruption insurance
8-General Liability insurance
9-Cyber security insurance
10-Shop insurance

You cannot impulse buy an insurance, business insurance helps your company to minimize the risk hence choosing the right business insurance is the top most priority.

Follow simple steps to find the best business insurance available for you.

You should always

Shop around
Compare
Bundle policies
Customize your policies
Manage your risk

Insurance Web Aggregators

Aggregation and selling, or simply put, collecting and selling has been the way to do business since the beginning. But now the venues have change. Instead of warehouse to store products, we now have web, and instead of materialistic products, we now have abstract products. So, for a web aggregator, meaning would be to collect products and store them on the web. In this case, the products we are talking about are insurance policies. And through this article, you’ll know about web aggregator.

An insurance web aggregator has a simple job. He runs a website that provides customers a way to look at, compare between and choose from different insurance policies. In a world where people are concerned about far future far more than they are worried about living today, insurance policies are the best products to buy.

And web aggregator business model is such that it delivers people aren’t compelled to buy the products. They are first given options to consult, compare and only then, they can decide to do so.

But that’s just a gist of what an Insurance Web Aggregator is.

Insurance Web Aggregator: An online shopping model for policies

The entire concept of insurance aggregation came from the idea of selling abstract products online. People do by literally everything online (and I used literally correctly here), then why not insurance policies. Through the power of the internet, such service providers treat policies like products, complete with:

Product descriptions: In which they detail each and every aspect of the product. Unlike the “marketing” approach for descriptions, web aggregators provide a fair assessment of the products.
Customer Analysis: It allows the IRDA web aggregator (more on that in the next section) to suggest the best insurance policies to the visitors after analyzing their needs and their financial state.
Comparative Analysis: It’s the module that users can use to compare between the many insurance “products” available to them. Being on a portal that gives fair suggestions, they can completely trust the comparison to be true.
Becoming an Insurance Web Aggregator and the right operating model

One does not just waltz up to online and start signing agreement with policy companies to start an Insurance web aggregator portal. If you want to run such a company, you have to gain the IRDA license to become a web aggregator. IRDA or Insurance Regulatory Development Authority of India is the body that issues the insurance web aggregator license. It’s this authority that not only issues the license, but also defines everything in that include:

Auto Insurance Costs During The Pandemic

We’ve been driving less during the COVID-19 pandemic. As a matter of fact, when we look out the window, we can notice that once-busy roads look deserted as if everyone suddenly disappeared. There is a slight chance that we might be overpaying for our car insurance.
The reason? Because car insurers base premiums, in part, on our estimated time on the road, you may be wondering if your insurance company should charge you the same as premium now that it did last year.

The coronavirus outbreak and associated lockdowns have instantly removed millions of cars from the road and considerably brought down car accidents. In April, one study showed that only in California, the highway injury crashes have dropped to 50% during the lockdown.
However, car insurance companies’ reaction to these drastic changes in driving habits took more than two months to roll out. Major insurers have now implemented plans to reduce premium costs for their customers and pass on savings.

The pandemic has affected the lives of everyone. The consequences of this ill-fated event are terrible, and no one knows precisely when it’s going to end. The challenges the regular U.S citizens have to overcome are expected to be more serious than the ones from the last financial crisis. As for car insurance, there is a little good news for regular U.S citizens. Several major insurers have disclosed that they will help their clients who are in financial difficulties.
In these uncertain times, the car insurance industry has changed in several different ways

Some insurers are repaying premiums during the pandemic. Since the declaration of emergency, the number of vehicles on the highway had reduced drastically. This pushed major insurance businesses to give back some of the money policyholders spent on their premiums.
Car insurance premiums are expected to be much more costly in the near future. Insurers collect billions of dollars that are not just hoping to be paid out in claims but also being invested.

Insurance businesses make good profit from their investments; however, the investment world is now being shaken by the pandemic, and the only option left for insurers is to increase their premiums.

Travel Insurance Protect Us In This Pandemic

Travelling the only thing that keeps us alive and energetic in our lives. This Pandemic has made us feel our limitations. But the human race is the fittest creature God has ever made. Now we have learnt to live with it and started travelling, but we have to be secure and consider travelling Insurance as an important factor for us. Travel insurance accompanies all the advantages, including failing to catch planes, inclusion during sickness abroad, and even with lost things. In this article, we will examine the benefits of settling on Travel Insurance in this worldwide pandemic.

Top Reasons to Get Travel Insurance
As the world starts to ease from the global pandemic scenario, international flights have continued to operate. But at the same time, the risk of getting infected persists. Under normal circumstances, one may not be inclined towards getting travel insurance. But with the stakes being higher than ever, here are some of the reasons worth considering for getting Travel Insurance Edmonton :

1) The Lingering Risk of Getting Affected by COVID-19
As stated earlier, we are probably months away from getting a proper vaccine for the new coronavirus. While medicines have shown effective results towards a person’s recovery, the vaccine is still the best preventive measure to look for. That being said, the risk of getting affected by COVID-19 still persists. In fact, planes being one of the closed environments, we can’t follow the standard social distancing norms. This is where the Rv Insurance Alberta can really come handy, in case you are affected while travelling abroad. At the same time, it can provide you with the right medical coverage.

2) Airlines Services Are Still Getting Accustomed
Believe it or not, airlines are having a hard time following through all the WHO protocols. Their extremely volatile airline structure can also be blamed for the same. Airline services have been understaffed since their continuation amid pandemic. This, in turn, directly affects the travellers. People may come across missing connections; luggage may be lost along with the greater risk of travelling altogether. Whatever be the case, it gives us enough reasons to opt for travel insurance, now more than ever before.

3) Right Assistance During Trip Cancellation
The fear of illness is never a valid reason when it comes to cancelling your trip. No travel insurance company is going to reimburse for the same. But at the same time, the COVID-19 pandemic has shaken the world like never before. If you are travelling to a certain area where the local government has announced lockdown, your trip cancellation shall be under consideration. Opting for travel insurance will provide you with the right assistance when it comes to getting maximum reimbursement. This is something going to be available, even with the post-pandemic world.

Different Types of Life Insurance Policies

Broadly, the life insurance policy can be divided into two categories –

1) Pure life policy

2) Life insurance

Here are details about various types of life insurance policies that are available in India.

a) Term Life Insurance – pure protection plan :

Term insurance can be defined as the simplest, easy to understand and affordable form of life insurance. It is a pure protection plan, offering high life cover at low premiums. Term plans provide death benefits to the nominee of the policy which gets paid as lump-sum, monthly or partial payout methods; in case the insured person dies during the policy tenure.

A term plan does not offer any maturity benefit if the policyholder survives the term of the policy. However, you can add riders to extend the spread of the policy coverage. The primary benefit of term life plan is to provide financial security to the insured person’s family in case of his or her untimely demise. The substantial amount of death benefit helps the deceased’s family to sustain their lifestyle comfortably along with paying off any outstanding liabilities, children education, their marriage or regular household expenses.

b) Whole Life Insurance – life coverage for the entire life :

A whole life insurance policy offers coverage to the policyholder for the entire life or in some instances till the age of 100 years. It is not like a term plan which provides coverage for a specified tenure. The premiums in a whole life insurance plan are higher than the term plan. The coverage amount or the sum assured is determined at the time of purchasing the life insurance policy and paid to the policy beneficiary along with bonuses upon the death of the insured person.

However, in case the insured outlives the tenure of the policy, then the company pays the maturity benefit. It also offers an option to withdraw partially after the premium payment term gets over.

c) Unit Linked Plans (ULIPs) – Insurance and investment :

A unit-linked plan is a combination of insurance and investment aspect. Under ULIPs, the premiums paid are partially used for the coverage, and the other part gets invested in various funds such as bonds, equities, market funds, debts amongst others.

Knowing About Life Insurance

Life insurance is one of those seemingly complicated concepts that are grossly misunderstood by many people and surrounded by misconceptions. If you’ve never considered taking out a policy, it’s about time you did. Because as it turns out, life insurance is a pretty straightforward contract between an individual and an insurance company. Here are five basic facts that should help clear any misinformation.

1. Life insurance is a financial plan, not an investment
Some brokers advertise life insurance as an investment opportunity. No type of coverage or policy can help you build your wealth, not even those with a cash value. Think of life insurance as a financial security plan or retirement plan, not an investment or business venture.

2. Term vs whole life insurance
There are many types of life insurance policies, but they all generally fall under either term or whole life insurance. Term life is a policy you purchase for a specified period, usually between 10 and 30 years. Whole life is a life-long policy with a cash value.

3. Life insurance is surprisingly affordable
Many people shy away from life insurance policies because they assume that the premiums are too expensive. Well, that’s just not true. According to Finder, a healthy middle-aged Australian can pay as little as $4.40 per week for a $250,000 insurance policy. Most policies can be even much cheaper if you take them at a young age.

4. A life policy can be so much more
The main purpose of life insurance is to secure your beneficiaries’ financial future after you’re gone. But it can be so much more than that. For instance, most insurers include optional life insurance riders in their policies to cover financially straining situations such as disability, loss of income and terminal illness. You can also use the cash value of to secure loans and other financial perks.

5. Your credit score may not affect your life insurance premiums
Statistically, people with low credit scores are more likely to file insurance claims than those with high credit scores. In some cases, insurers regard a low credit score as a high-risk factor, which often translates into higher premiums – for instance, when buying car or home insurance. But when it comes to life insurance, things are a bit different.

Although the underlying rules, guidelines and requirements may vary between companies, the credit score generally has little or no influence on life insurance terms. Insurers typically focus more on life expectancy than the client’s credit history when calculating premiums.

Also, filing for bankruptcy may not affect your policy either. However, if you apply for life insurance shortly after filing for bankruptcy or with several bankruptcy cases on your record, the insurer may have the ability to limit your coverage options.

6. It’s for everyone
Life insurance is not just for senior citizens and retirees. Anyone can take out a policy, including children. Insurers evaluate insurance applications on a case-by-case basis. Every policy’s terms and premiums are personalised to an individual’s status, such as age, health history, dependants, financial situation, and the ability to pay the premiums. Regardless of your age, health condition or job situation, there is a policy for you.