What is the Business Case for Analytics?

You have acquired a lot of data. You’ve done everything you can to ensure that the data has been accurately and consistently collected and stored across your systems. Well done, you’re ahead of most of your competitors and, maybe even more exciting, you’re now ready to make a business case for analytics. Analytics is what is needed to unlock the value in your “big” data and to turn all of the one-dimensional facts your insurance organisation has collected over the years into actual business insight.

There are more analytics options now than you can shake a stick at. From analytics for underwriters, claims orientated ones, billing and accounting analytics, outwards reinsurance analytics, historic vs. predictive analytics to the analytics used to look at processes within the business.

The business case for analytics is much more than being able to stick a pie chart or bar graph in a slide deck to be presented at a quarterly meeting. Analytics is a driver for change. When done correctly it can help reduce your loss ratio, limit exposure, improve the quality of the business you underwrite, identify fraud, surface the value of your underlying systems and help control cost. When all of those benefits are stacked up together, it’s easy to see how analytics moves businesses forward.