HomeBlog3 Ways the Insurance Industry Can Benefit from Secure Data Collaboration

3 Ways the Insurance Industry Can Benefit from Secure Data Collaboration

February 04, 2021 by Marta De Stradis

As the insurtech space matures, insurance companies are increasingly keen to explore data-driven AI and machine learning technologies to mitigate risk and drive ROI. However, these solutions come with limitations….exclusive reliance on proprietary data in a siloed business environment impairs your view of the bigger picture, particularly when it comes to detecting fraud and developing new channels for business growth.

Getting the most out of data

Getting the most out of data should be an industry-wide, collaborative effort, a new frontier for insurers who have traditionally operated independently for competitive or compliance reasons. Fortunately, cross-organizational data solutions powered by Privacy-Enhancing Technology (PET) are already being deployed within the sector — helping insurers to safely leverage high-quality data insights from other ecosystem members in a privacy-protected and regulatory-compliant environment.  Using these PET tools, companies can securely exchange actionable intelligence and monetize insights from internal data, without exposing sensitive business information.  

 

Industry leaders in the insurance sector who want to get ahead of the curve and front-run market trends are already working with QEDIT to solve complex business problems and to accelerate their growth strategies. Let’s take a closer look at ways in which our secure data collaboration platform is helping insurers achieve their objectives. 

 

1. Detect under-the-radar fraud and mitigate risk: 

QEDIT enables insurers to identify certain types of fraudulent activities that are impossible to detect in a siloed environment. By collaborating with carriers or other relevant parties to compare, match, and verify securely hashed data derived from confidential client records, insurance providers can ascertain valuable information about their own customer accounts. They can, for example:

  • Detect cases where the same invoice has been claimed multiple times
  • Spot instances of policy stacking
  • Identify agents who are conducting illegal churning practices
  • Cross-reference policy applications & claims data against records held by carriers, fintech companies, social media organizations and other external sources to verify information consistency 

The ability to expose such activity — in real-time, in an automated fashion, and without exposing any sensitive information — is a net benefit to all the collaborators, both operationally and financially. It enables them to mitigate risk, prevent losses and save time and resources on otherwise costly investigations.

 

2. A collaborative approach to business growth

QEDIT empowers insurance companies to expand their market share through customer data collaborations with brokers or other channel partners who sell insurance policies.  To kick off a business growth campaign, the companies can use QEDIT to identify whether they have mutual clients, without either party revealing any Personally Identifiable Information (PII) or other sensitive data. With new data points about mutual clients, insurers and their partners can advance customer segmentation efforts and engage in more targeted marketing outreach.

 

For insurers, the benefits of enriched data extend to policy offerings, marketing outreach and customer onboarding. Specifically, new insights can help insurers craft more competitive policies and execute coordinated marketing campaigns that are optimized to upsell or cross-sell services. Additionally, partner-led referral campaigns targeting non-overlapping customers can help insurance companies acquire new customers at lower costs.

 

3. Privacy-centric data monetization

QEDIT also helps reinsurers to collaborate with carriers on sensitive data to capture new value. For example, our platform can aggregate industry-relevant information provided by carriers to establish benchmarks and identify new risk indicators, without compromising user privacy or regulatory frameworks. In parallel to helping carriers create a go-to-market strategy for their data assets, reinsurers can offer QEDIT-generated insights as value-added services, such as identity verification, to relevant stakeholders. These new data assets can bolster the enforcement of industry-wide regulations and help carriers define new policy terms and conditions, and pricing strategies.

 

 

As outlined above, the case for secure data collaborations across the insurance sector makes sense from a range of perspectives, particularly around fraud detection, market share expansion, and secure data monetization.  If a collaborative mindset endures over siloed thinking, mutually beneficial collaborations between insurers can become the standard, allowing companies in this space to freely leverage data in their ecosystem – without compromising confidential business information or user privacy.

 

Contact us to learn more about how QEDIT is being used in the insurance industry to mitigate risk, lower customer acquisition costs and create new revenue streams for companies.  We’re also happy to schedule a live demo to show you the benefits of a secure data collaboration tailored to your business!