The use of new technologies and mégadonnées (Big Data) provide unprecedented opportunities for life insurers, both in the area of that analysis in the development of activities. The scanned information can optimize the evaluation process in life insurance, improving risk selection and pricing, Swiss Re said Wednesday.
The life insurance sector is at a crossroads, according to the “Sigma” study. Using mégadonnées, cognitive computing, and the possibility for insurers to expand their business through digital information are the main themes. The mégadonnées and impact analysis tools on the risk assessment process and the increasingly automate. Future developments in the field of cognitive computing should also lead to more consistent decisions and cost savings, Swiss Re estimates.
“The use of cognitive systems and their algorithms speech recognition and understanding of the text will allow the extraction of essential information from complex databases, including unstructured medical reports, “says Kurt Karl, chief economist of Swiss Re. The mégadonnées and tools analysis should also stimulate the development of risk assessment based on predictive analysis.
The technology offers new possibilities to establish a more regular interaction with customers and improve loyalty Customer recognizing the changing needs. Some life insurers have launched loyalty programs that reward policyholders opting for a healthier lifestyle. New technologies enable customer segmentation, especially in emerging countries, where the distribution of insurance on mobile devices has increased exponentially over the last decade, says the study.
To take advantage of the opportunities of the digital age, life insurers, however, must review their business models and invest in technology. Finally, the authors of the study emphasize the importance of ensuring the security of customer data in accordance with the legal provisions in force data protection, particularly in cross-border activities.