November 3, 2017 by Jeffrey Baer, Manager of Advanced Analytics, Economical Insurance
Brokerages can gain valuable insight, such as a better understanding of customer turnover and demographics of their market territory, by analyzing electronic data without buying the most expensive database management software on the market. However, there are specific steps that need to be taken to ensure the data is of suitable quality.
Analytics managers at insurance carriers collaborate with the various business units within the company to use analytics to improve efficiency, decision-making and the customer experience. With the right data, skillsets and a little bit of elbow grease, the same objectives can be achieved at a brokerage.
Analytics is the broad term used to describe data and numerical analysis to derive insights and guide decisions. While “big data” is the new craze in analytics, it is not necessary to collect thousands of data points on millions of clients for analytics to be successful. In fact, smaller data sets are generally easier to understand, process, and analyze.
The key to analytics is data quality. The old adage “garbage in, garbage out” best describes this. The insights gained from analyzing data are of little or no use if incorrect data is entered, or if the input data is duplicated, inconsistently coded or incomplete.
Read the full article in the Digital Edition of the October 2017 Canadian Underwriter.
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Jeffrey Baer, Manager of Advanced Analytics, Economical Insurance