Analytics prepare insurance carriers for the rapid pace of risk
Three tech leaders discuss the most valued data and analytics skills, industry trends, and what matters most to today's carriers.
The insurance industry has entered the next stage of digital transformation. Carriers that utilize the right tools can properly collect and store their data and, from there, equip themselves with the insights to make smarter, data-driven decisions.
These insights and the ever-increasing importance of analytics can help carriers stay on top of risk, directing them to key areas on which to focus. With technology set to continue as one of the biggest industry trends going forward, it’s important to know what this means for carriers.
As senior vice president of RMIS Solutions at Gallagher Bassett, I recently sat down with analytics from our firm to discuss the topic. Megan Nelson is assistant vice president of Operation Insights & Analytics; Jessy Watson is assistant vice president of Consultative Analytics; and Sandra Nikodimos is senior associate of Consultative Analytics.
These women discuss the most valuable skills to have in data and analytics, industry trends, as well as what matters most when supporting carriers through technology.
Turner: What are some industry trends you think are going to impact carriers this year?
Watson: The big differentiator today is not what we do but the experience that insureds, claimants, and other parties bring into the process. We live in a smart, connected society, and how we go about the business of insurance (and examine such via analytics) has to align.
As an example, when looking to claim financials, using operational data and experience not only gives a more holistic point of view, but allows carriers to impact those same financials by addressing identified operational- and experience-oriented opportunities that may have been previously missed.
Nelson: Organizations are encountering change more rapidly than ever. This trend is only going to accelerate, and that creates an enormous amount of risk. But if carriers are armed with the right tools, then they will be prepared and able to face any risk with confidence.
Turner: Over the last few years, we have experienced a lot of change in the industry. With maturing claims and risk management disciplines, the focus has shifted to improving outcomes and program performances. Those that lead their sectors have successfully tapped into the actual context and meaning of their risk management information, driving deliberate decisions and actions that lower their total cost of risk.
Have you seen changes in the types of decision support tools carriers leverage?
Watson: I have seen fewer changes in the types of tools carriers need and leverage, and more changes to how they need to use and leverage them. Being able to customize those tools, use them proactively, and work with analytics teams that understand and accommodate needs for increased autonomy or support have become increasingly prevalent.
Nelson: By combining the strengths of human and artificial intelligence, we can provide more effective decision support to carriers. This approach also provides a feedback loop that invites experimentation and facilitates improvements to solutions to promote learning and adapting to an ever-changing environment.
Turner: Carriers are focused on their core business, and they expect us to care for their technology and data needs. This requires flexible technologies and a relentless drive for product innovation as well as merging claims expertise with these advancements.
When supporting carriers with data, analytics and tools, what matters most?
Nikodimos: We are overloaded with data these days, and it is easy to get lost in the numbers. So interpreting data correctly and focusing on what matters most is important. It also enables claims resolution managers and supervisors to have more rewarding careers and dive deeper into issues to drive superior outcomes impacting injured workers, claimants, attorneys and other constituents.
Watson: What matters most is listening to understand and provide the appropriate solutions to carriers based on our expertise in analytics and their objectives, rather than delivering only exact requests.
Turner: What do you think is the most valuable skill needed for working in data and analytics?
Watson: Curiosity is the hallmark of any good analyst. We are infinitely curious to understand “the why,” which is what separates analysis from reporting. Being able to serve as a translator between any business and the data that represents it is invaluable. Finally, in the absence of clearly defined data, great analysts figure out how a question may and should be answered.
Nikodimos: The ability to process large data sets and understand what the numbers are telling you. I like the fact that the problems we face are challenging and dynamic, which is why it is necessary to love solving problems every day.
Nelson: The ability to simply communicate complex topics to any audience. Far too often, the conversation becomes complicated and intimidating when data and analytics are introduced. It is our responsibility as data experts to make insights accessible to all stakeholders.
Jennifer Turner (Jennifer_turner1@gbtpa.com) is senior vice president of RMIS Solutions with Gallagher Bassett, a global provider of claims and risk management solutions. She is an industry veteran with more than twenty years of experience partnering with product development and client services teams to enhance the service package offerings of GB’s award-winning RMIS platform, Luminos, to meet the evolving needs of our clients.
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