3 Ways Insurers Can Use Unstructured Data
In 1996, Bill Gates said that “content is king.” Then he predicted a viral pandemic during a TED talk five years before it happened. Bill is a smart guy and while he was terrifyingly accurate about the pandemic, we think his quote about content may be a bit outdated.
New technologies like apps and sensors are all around us and the “Internet of Things” is more like our “Life of Things,” recording and reporting on us every minute of every day. Nowadays, digital applications are available to help us manage almost every aspect of our lives.
The constant in all this is not the “content.” It’s the data.
According to a study conducted by Accenture, 79% of enterprise executives say “companies that do not embrace big data will lose their competitive position and may even face extinction.”
The insurance industry is no exception to this. Firms rely on the insights from data to satisfy their customers and adapt their businesses. But what if I told you that only 20% of available insights are being used?
This is because 80% of the information insurers collect is unstructured. This can include text messages, social media posts, videos, voice recordings, emails, and so much more. In a digital age, customers are continuously producing information that can radically inform the industry. If only companies knew how to unlock the value.
Unstructured data is a treasure trove of information, but it is much more difficult to analyze than structured data. However, with the rise of artificial intelligence and machine learning, companies have an opportunity like never before. Unlocking this information can help firms:
- Profile & Segment Customers. Customers want information on-demand that is customized to their individual needs. With unstructured data, firms can generate customer profiles resulting in more satisfied customer relationships.
- Predict Churn. As the insurance market becomes more competitive, it also becomes more difficult to predict when and why customers leave using traditional methods. By taking advantage of more customer data, firms can generate accurate models that identify red flags and predict churn before it occurs. This will enable firms to re-engage and reduce losses.
- Lead Generation & Market Automation. Identifying and qualifying sales leads can be time-consuming and repetitive. However, with unstructured data, companies can identify the profile attributes of good customers and use them to build search criteria.
In the world of business, time is money. Data is king because it saves time, increases profits, and creates better user experiences. It is time for your company to take advantage of the modern monarchy. Start using your unstructured data today with Inonde.