The Four Pillars of Insurance Data Enrichment
Carpe Data was recently featured in a report published by the Aite Group, which cites four key functionalities that insurers should look for in alternative and emerging data providers.
According to the Aite Group, here are the four main pillars any insurer should look for in quality emerging and alternative data providers:
Traditional data’s usefulness is limited to what was known at the time the information was collected. These sources are not dynamic enough to provide carriers with an up-to-date view of a business or person seeking coverage or making a claim. To stay competitive, carriers require a more fluid and continuous approach to data analytics.
Alternative data needs to be gathered from as many diverse sources as possible to ensure its quality. It’s not enough to scrape information from a single source and call it a day; using multiple sources not only verifies facts for insurers, but also supports the third pillar:
A Holistic and Nuanced View
Real-time data collected from diverse sources gives carriers a clearer picture of the true nature of the risk being presented. More data does not always equate to better insights, however, and it’s a considerable undertaking to process bulk raw data regardless of its source. In a recent report published by the Aite Group, they noted this about Carpe Data’s unique approach to solving data overload:
“Carpe Data has been thoughtful about its output. Carriers are awash in data and can get lost in all of it. However, Carpe Data has managed to distill this data into a useful, informative, and digestible format to help inform carriers’ decisions.”
Data doesn’t just tell us the facts as they happened; certain data cues alert us to patterns that may lead to future outcomes. As more data is gathered, the pool of possibilities expands and predictive analytics become sharper and smarter.
Traditional data continues to play a role in carriers’ core processes of underwriting and claims, but it doesn’t always provide the complete picture of a submitted application for an insurance policy or of a filed claim. By synthesizing and analyzing their findings, data providers can offer insurers tangible solutions to some of the bigger challenges facing insurers, namely a broader understanding of what policy applicants or claimants are up to – potential clues as to whether they are good risks or are making legitimate claims.
Check out this report from the Aite Group to help you determine which data partner is right for your new data initiatives.