The slides explain the big data in insurance industry and how it is used as a tool to collect information and find out the fraud activities in the insurance industry.

1. BIG DATA IN INSURANCE INDUSTRY
PREPARED BY
SINDHU S

2. INTRODUCTION
• Insurance holds importance for everybody as it deals directly with the safety of our lives and assets.
• Big data analytics is an innovation that helps companies in taking the correct decisions by providing
them with intuitive insights. Big data use cases in the field of insurance exemplify what an industry can
do, given the right insights.
• The insurance industry holds importance not only for individuals but also business companies. The
reason insurance holds a significant place is because it supports people during times of adversities and
uncertainties.
• With technology evolving at an astonishing pace, how it manages to find applications across several
industries is an exciting spectacle.
• Big data refers to the abundance of information collected from numerous sources. The data collected
from these sources are of varying formats and change at tremendous speeds

3. How Big data used in insurance industry?

4. COLLECTING INFORMATION
• As big data refers to gathering data from disparate sources, this feature creates a crucial use case for the
insurance industry to pounce on. When a customer intends to buy a car insurance, the companies can
obtain information from which they can calculate the safety levels for driving in the buyer’s vicinity and
his past driving records.
• Calculates the risks, companies often phase out the possibility of the driver being involved in an
accident.
• Referring to life insurance and as big data in healthcare is already an application, companies encourage
users to wear smart gadgets that can be linked to databases that transmit health information from users
to the organization’s database.
• Collecting information helps warning the insured individual about an impending illness or disease.
Raising the cover allows users to feel secure about themselves when under a life insurance.

5. GAINING CUSTOMER INSIGHT
• Determines customer experience and making customers the center of a company’s attraction is of prime
importance to organizations.
• With big data’s introduction in insurance, agencies can easily store, manage, and access information
arriving from several sources, which is directly related to customers.
• This data can help organizations in gaining customer insights, such as past policies held by her, and
answering frequent questions asked by a customer to the organization.
• With big data analytics, insurance agencies can have accurate information at their disposal, which can
help them focus on improving customer experience.

6. FRAUD DETECTION
• Insurance frauds are a common incidence. Big data use case for reducing fraud is highly effective.
• Using big data in insurance, companies can keep track of past claims made by a client and the
possibility of her claims being fake.
• When systems detect that a claim is being made by someone who has a history of false claims, the
system automatically halts the claim processing and initiates an investigation against the customer.

7. THREAT MAPPING
• When an insurance agency sells an insurance, they want to be aware of all the possibilities of things
going unfavorably with their customer, making them file a claim.
• Setting policy premiums also becomes easy as big data provides organizations with ample information
to analyze from. When a customer wants motor insurance, for instance, the insurance company can
analyze information about the areas where his vehicle travels the most and what is the possibility of that
vehicle being damaged and how prone is that area to road accidents.
• Organizations look up to the use cases and learn about the ways in which big data analytics can help
them. CTOs and CIOs of insurance agencies can start reading about how their agencies can further
benefit from the use of big data.