Location data is a driving force in the insurance industry touching almost all areas of business. And because location intelligence data is more available now than ever — thanks to IoT devices and advancements in artificial intelligence and machine learning – there’s potential for location data to propel the workflow process within the insurance industry in a way that’s never been done before.
Despite the potential that comes as a result of using location data for risk management in insurance, industry professionals recognize that if data is unable to be operationalized there’s little value in it. To this point, experts like Jean Sullivan, Vice President of Insurance for Pitney Bowes, argue that the two biggest barriers to utilizing location data is inaccurate data and frustrated IT departments managing overwhelming amounts of inaccurate data.
Fortunately, there is a solution, but it calls for the insurance industry to take a different approach to location Master Data Management (MDM). In a recent whitepaper by Harvard Business Review Analytic Services, experts note that such an approach has the ability to provide advantages to both the business and IT sides of insurance companies especially considering that artificial intelligence-based technologies and the internet of things (IoT) further supports what location MDM does and helps it to be more effective.
The idea behind the approach revolves around three critical components including the need for hyper-accurate data to ensure precision in risk management. The next component is a consistent and unique identifier for each property being assessed, and the last component is the capacity to link data sources to the unique identifier. When analytics models are aligned to matching data sets, they are integrated into the insurers business workflow which includes processes like risk assessment, underwriting, claims and customer acquisition.
By implementing the above components insurance companies are able to experience the full benefits of MDM strategies. From there they can sit back, relax, and watch for an increase in workflow efficiency, reduced risk, and growth profitability.