We are excited to have been showcased by Forrester Research in their newest white paper, Breakout Vendors: Insurance Data And Analytics. Vidado is one of three influential solutions providers that are “helping insurance companies find hidden risks, converting paper-trapped data into insights, and widening access to customer insights.”
As insurers strive to increase the accuracy of their risk predictions and provide the personalized experiences customers are demanding, they need to derive meaningful insights from a range of data types without compromising customer privacy. While insurers work with volumes of data every day, Forrester analyst Ellen Carney writes, “that doesn’t mean it’s easy for them to capture or interpret it.”
Having recognized the need for effective means of capturing, normalizing and transforming data, the insurers surveyed by Forrester are increasing their data and analytics spending to meet their increasing needs. Compared to other industries, insurance companies deal with a greater volume of structured, unstructured and semistructured data.
“As they look to capitalize on that data,” Carney notes,” more insurance firms are planning to grow their data and analytics budgets when compared with the average of all other industries.” According to the report, IT and business budgets in the insurance space have increased by 68 percent in 2015-2016, versus an increase of 53 percent in other industries over the same period.
Companies are now empowering their employees with access to the insights derived from their data. Agents use data to estimate customer churn, underwriters study the data as they match up premiums to their assumed risks, and CFOs use it to manage reserves.
That being said, a gap exists in data utilization. “Even though 56% of data and analytics decision-makers in the insurance industry that Forrester surveyed say they are investing in or have invested in more business-friendly, self-service data visualizations and analytics to make data consumption easier for rank-and-file employees, many more are not prioritizing data navigation and interpretation.”
Many insurance pros are beginning to build trust in data after a long history of relying on instinct. According to a recent Forrester survey cited in the paper, “17% of insurance business and technology decision makers indicated that changing management culture to rely more on quantitative data-driven decisions was an initiative that their firms were planning on implementing in the next 12 months.” Forrester is careful to note that even with this culture shift, executives must still rely on instinct to make business decisions.
Insurers must also enact privacy practices that engender their customers’ trust. Over half of the adults surveyed by Forrester in 2016 expressed concerns about sharing their personal information via digital channels. Data privacy is a tremendous concern for customers, but without customer data, insurers will have a very difficult time creating the personalized coverage customers now demand.
Fortunately, solutions providers are answering the challenges with novel approaches to accessibility, data quality and security – and Vidado is among them.
Our cloud-based data-as-a-service solution gives insurers an accurate and efficient way to capture, digitize and extract printed and handwritten data, which allows insurers to increase automation of important processes. Here’s what Carney and her team had to say about the advantages Vidado offers to insurers:
“Vidado’s data capture, extraction, and analytics solution address a number of business imperatives for insurers. Capturing and analyzing historical policy data improves underwriting accuracy. For one carrier, the company has digitized a half million new business applications, speeding up the quote-to-bind process and producing a 50% drop in staffing costs. For New York Life Insurance, Vidado extracted cause-of-death data from 10 years of paper death certificates that the insurer is using to refine its life actuarial models.”
Our steady growth track did not escape Forrester’s notice. “As part of its insurance diversification efforts, the company is eyeing opportunities in commercial property and casualty insurance, a line of coverage that also is highly dependent on the data lodged on paper and forms.” In addition to building a base in the healthcare space, we are also expanding to the UK in 2016.
If Insurers are to remain competitive, speeding up time to insight is critical — especially as an onslaught of data from telematics looms. For insurers to face even more wide-ranging challenges, such as using deeper, data-driven explorations of customer behaviors (predictive analytics) they must effectively master the basics. And Vidado is helping them do exactly that with a pioneering combination of secure extraction technology and crowd-guided machine learning In fact, 50 percent of this country’s top insurers use Vidado to reliably capture, transform and analyze their big data. Learn more about our unprecedented speed and 99.9 percent accuracy rate on our solutions page.