# Insuring the industry with predict and prevent Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-02-02 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Predict and Prevent: How Data Can Drive Insurance Industry Meta Description: Learn how using a predict and prevent approach in insurance can save money, prevent disasters, and build trust with customers. Find out more here. URL: https://financedigest.com/insuring-the-industry-with-predict-and-preventhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/untitled-design-72-1736838597286-compressed.jpg) _By **Manan Sagar,** CTO for Insurance at_ [_Fujitsu_](https://www.fujitsu.com/uk/) Deep down at the bottom of the ocean are devices that measure pressure. So if a tectonic plate shifts beneath the seabed, and water levels begin to rise (even by just a centimetre), the alarm is raised that a tsunami may be on its way to a shoreline. Of course, it’s not something that can be stopped, but it is something that can be managed to limit its destruction. People get to safety, and some valuable possessions can be removed from the area. Now a burst pipe or a cancelled holiday may not cause the same mass destruction as a gigantic wave sweeping through a city. However, the predict and prevent approach used for natural disasters can equally be applied to [disruptions by insurance](https://www.financedigest.com/the-road-to-digital-disruption-in-motor-insurance.html "The road to digital disruption in Motor Insurance") companies. Not only does this potentially decrease the level of fallout [customers have to deal](https://www.financedigest.com/uk-and-eu-reach-post-brexit-customs-deal-for-n-ireland-the-times.html "UK and EU reach post-Brexit customs deal for N.Ireland-The Times") with, it’s also likely to save money for both the insurer and customer. For example, if we used tech such as [artificial intelligence](https://www.financedigest.com/how-artificial-intelligence-is-simplifying-sanctions-screening-for-insurers.html "How Artificial Intelligence is Simplifying Sanctions Screening for Insurers") (AI), deep machine learning and cognitive neural networks to track factory machines, data can tell us when those machines will need repairs or replacing. It [stops machines from gradually deteriorating until there’s a massive break down by triggering preventative actions](https://www.financedigest.com/tf1-to-take-action-against-vivendis-canal-over-decision-to-stop-airing-its-programmes.html "TF1 to take action against Vivendi’s Canal+ over decision to stop airing its programmes") at the moment just before there’s an issue. This results in the customer spending less money on repairs and losing money on downtime. It also [saves insurance companies money](https://www.financedigest.com/5-saas-tools-to-help-your-company-business-save-money-in-2022.html "5 SaaS Tools To Help Your Company/Business Save Money in 2022") as they avoid funding larger claims, and the money they save can contribute back to business. **_At the heart is data_** Data is core to a “predict and prevent” model. It holds great importance and is becoming more and more [integral in an industry which has always used data](https://www.financedigest.com/can-banks-compete-in-the-digitisation-race-without-effective-data-integrity.html "Can banks compete in the digitisation race without effective data integrity?"), just not in real time. And with an explosion of [digital technology](https://www.financedigest.com/how-banks-can-use-digital-technology-to-become-more-sustainable.html "How banks can use digital technology to become more sustainable"), real-time data is becoming increasingly available to analyse water pressure, personal fitness, how we drive, the status of machine components and much more. By collecting data from incidents as they happen, [insurers can understand the common signifiers of potential risks](https://www.financedigest.com/improving-risk-management-in-the-insurance-industry.html "Improving risk management in the insurance industry") that lead to claims. With this insight, [insurers are more accurately able to predict](https://www.financedigest.com/predictive-analytics-a-new-way-of-insuring-success.html "Predictive analytics: a new way of insuring success") high-risks and be prepared to deal with them faster. It’s this speed and convenience that insurers can provide by using the predict and prevent approach, which [builds trust](https://www.financedigest.com/epi-how-to-build-trust-and-adoption-among-consumers-and-merchants.html "EPI: How to build trust and adoption among consumers and merchants") with customers. In turn, an insurer can continue to guarantee their profitability and competitiveness. **How to tackle a wave of change?** Strategy will have to change for insurers intending on gaining the benefits of a predict and prevent approach. Yet this can be an overwhelming starting point, especially when there’s so many [technologies that could potentially accelerate your services](https://www.financedigest.com/how-advanced-self-service-technologies-are-changing-the-face-of-finance.html "How Advanced Self-Service Technologies are Changing the Face of Finance"). So, first off, start simply, by asking yourself how and why you want your [business to adopt a predict](https://www.financedigest.com/disruption-and-innovation-four-predictions-for-the-business-landscape-in-2016.html "DISRUPTION AND INNOVATION – FOUR PREDICTIONS FOR THE BUSINESS LANDSCAPE IN 2016") and prevent approach. Then, you need to look at the practical side of things. How can you untangle your current infrastructure and adapt it to meet the aims of your new strategy? This can be equally challenging as numerous legacy systems can make [automation and data management](https://www.financedigest.com/impact-com-named-a-market-leader-in-research-in-actions-partner-management-automation-report-and-in-g2-winter-reports.html "impact.com Named a Market Leader in Research in Action’s Partner Management Automation Report and in G2 Winter Reports") complex (which will be essential for predicting and preventing). So, you’ll have to audit your IT landscape and [work out decisions for the future](https://www.financedigest.com/the-future-of-working-from-home-and-other-benefits-that-candidates-want.html "The future of working from home – and other benefits that candidates want") of your tech and decide on its relevancy. Some insurers decide to go about this task on their own, but others choose to work with external consultants. What’s important is that you ensure what’s being put in place will not become redundant in a few years, and that your company [culture can be managed positively](https://www.financedigest.com/creating-a-positive-and-productive-culture-within-the-workplace.html "Creating a Positive and Productive Culture Within the Workplace") through the transition. The goal with your IT is to essentially ensure you’re able to capture as much data as is necessary to gain a full a [view of your customer](https://www.financedigest.com/insurance-marketing-is-more-targeted-with-the-single-customer-view.html "Insurance marketing is more targeted with the single customer view") as possible. With this, you’ll have more accurate data which means you’ll be able to make more precise predictions. With time, [trust will grow between you and your customers](https://www.financedigest.com/more-than-twice-as-many-consumers-trust-customer-reviews-over-companies-themselves-according-to-research-from-smart-money-people.html "More than twice as many consumers trust customer reviews over companies themselves according to research from Smart Money People") because your actions prove that you’re right. **[Tech and data now have the primary role](https://www.financedigest.com/techie-turn-offs-top-7-things-that-put-talent-off-applying-for-tech-roles.html "Techie turn-offs: Top 7 things that put talent off applying for tech roles") in insurance** Of course, data can only be harvested at the scale and speed the [insurance industry](https://www.financedigest.com/nine-predictions-for-the-insurance-industry-in-2022.html "Nine predictions for the insurance industry in 2022") requires through technology. So, what tech should you implement? A [cloud infrastructure capable to support gathering](https://www.financedigest.com/european-banks-cash-in-on-rising-rates-as-clouds-gather.html "European banks cash in on rising rates as clouds gather") and processing of data at pace is going to be a pre-requisite. By using cloud technologies to collect large amounts of data, you can begin to build predictive underwriting [models where risks](https://www.financedigest.com/insurers-must-reimagine-traditional-risk-models-to-adapt-to-climate-change.html "Insurers Must Reimagine Traditional Risk Models to Adapt to Climate Change ") are captured in real time using live data feeds. [Deep insights](https://www.financedigest.com/musical-instruments-market-insights-deep-analysis-of-key-vendor-in-the-industry-2022-2026.html "Musical Instruments Market Insights, Deep Analysis of Key Vendor in the Industry 2022-2026") obtained from data is going to be vital, so this means attention should be focused on technologies such as robotic process automation, advanced analytics and deep machine learning. Although [insurers have been slower in their digital](https://www.financedigest.com/insurers-beware-fraudsters-love-digital.html "INSURERS BEWARE: FRAUDSTERS LOVE DIGITAL!") transformation in comparison to other financial sectors, the challenging recovery process following Covid-19 disruption is only going to increase the need for these technologies and the speed they can offer. For example, building resilience is going to be key, and this is only going to be [possible if insurers have the insights to plan](https://www.financedigest.com/uniper-rescue-plan-takes-shape-with-price-rises-possible.html "Uniper rescue plan takes shape, with price rises possible") for extreme scenario planning. A time would [come where there would be no choice but for insurers](https://www.financedigest.com/being-aware-of-the-insurance-blind-spot-when-it-comes-to-driverless-cars.html "Being aware of the insurance blind spot when it comes to driverless cars") to digitally transform – that time is now. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---