For insurers, it's all about the data
This Insurance Speak podcast features legal scholar Franck Giaoui speaking about how insurers can capture and utilize the data they need.
Technology is allowing insurance companies to capture an incredible amount of data about their policyholders and claimants. The challenge for many, however, is figuring out what kind of information will yield the best insights to allow them to identify new risks, price coverage more accurately, and create better products to protect policyholders.
The latest edition of Insurance Speak features a conversation with Franck Giaoui, a legal scholar and educator at Columbia Law School and the founder and CEO of OptimaLex Solutions, a settlement and litigation prediction tool. Giaoui has worked with the legal and financial industries to apply their data as part of their growth strategy and is now focusing on insurance companies to help them use vast amounts of information to identify new risks and create new products.
“Each insurer needs to choose a general strategy to collect data,” he advises. “Once everything is defined…then they can better determine what they need.”
While insurers are certainly data-rich, the challenge becomes how to take the raw data, clean it, normalize and standardize it to curate it to a company’s various needs. “Not everyone uses it in the same way,” he explains.
“Many companies fail in their efforts to utilize their data because they didn’t develop a strategic vision,” he adds. They believe that more data is better and don’t realize that big data does not always mean smart data. “You should be able to measure the results.”
Giaoui also discusses the role of predictive analytics in insurance and how carriers can use it effectively. He also highlights some of the common mistakes companies make when collecting data.
For more on the conversation, listen to the podcast on the link above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.
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