By Andrea Hargraves 
Data science has revolutionized management and operational strategy for companies of all sizes and sectors. With the continuous advancement of big data and analytics technologies, there are currently a wide variety of software available in the market. When used effectively by a qualified team, they are able to collect and organize data, as well as create relevant analyzes that contribute to assertive and effective decision making.
The insurance market is no different. Data science becomes essential to measure and improve operational performance, by monitoring indicators such as: occurrence of claims, defaults, analysis of opportunities and business losses, renewal of policies, and disruption by customer and product, among others.
To facilitate user understanding, basic data analysis techniques can be combined with advanced machine learning techniques. To storytelling, through graphic analysis on interactive boards. These can provide results such as: business performance models and targets, customer segmentation, and market share and product recommendations. Everything is updated in real time and with restricted access to specific areas, while respecting security and the provisions of the LGPD (General Data Protection Regulation).
With these specific analytics, it is possible to adjust marketing strategy, correct operational failures, automate tasks and strengthen relationships with insurers that offer greater profitability. That is, data contributes to supporting decision-making that directly affects the financial performance of the business.
However, it is important to stress that creating a data-driven culture goes beyond the quality of the solutions developed. The starting point is to implement a corporate culture that includes all employees, operating with the same mindset. For this to happen, it is necessary to conduct training and capacity building for the team. Without the team’s involvement, the data will be irrelevant and lose value. This is an excellent way to use intelligence for the benefit of business.
In addition, it is necessary to understand that correctly entered information generates an efficient and reliable analysis. In the insurance industry, this is particularly important, as data quality directly affects risk assessment, policy pricing, and fraud detection. In this scenario, standardization of information availability by insurance companies benefits them and brokers.
Research shows that the segment focused on big data and analytics solutions is growing exponentially across the planet. It is no different in Brazil. Study “Brazilian Software Market – Panorama and Trends 2022”, prepared by Apis (Brazilian Association of Software Companies), in partnership with consulting firm IDC, estimated to allocate about US$2.9 billion for big data and analytics solutions and services in 2022.
The 2023 preview of the same study also indicated that Brazil ranked 12th in the global ranking of countries that invest in technology, leading in Latin America, accounting for 1.65% of the $3.11 trillion invested globally in software, equipment and services by 2022.
In an increasingly disrupted and interconnected world, the digital revolution is here to stay and using data is no longer optional. Companies that know how to use technology strategically will be the champions of the evolution of the insurance market.
* By Janaina Carvalho, Director of Analytics at Wiz Corporate