A study by Infosys revealed that implementing digital initiatives could lead insurers to reduce sales expenses and operational costs by 10% to 25%. This is a huge competitive advantage that can be effectively realized by using ServiceNow FSO.
ServiceNow Financial Service Operations (FSO) plays a crucial role, empowering companies in the insurance sector to unleash valuable insights for data-driven decision-making and optimize their performance.
In this article, we dive deep into FSO analytics to understand its influence on the insurance sector/
Understanding ServiceNow FSO Analytics
According to McKinsey, data-driven insurance companies are 23 times more likely to acquire new customers.
However, in the insurance sector, a plethora of valuable data, ranging from customer demographics to claims history, remains untapped due to its complexity in management and analysis. Favorably, ServiceNow FSO presents a powerful solution to these challenges.
With ServiceNow FSO’s robust features for data collection, analysis, and reporting, insurers can effortlessly gather information from multiple sources, enabling in-depth examinations using dashboards, reports, and visualizations. This helps uncovers hidden patterns and connections and leads to informed decision-making.
How Does ServiceNow FSO Analytics Drive Data-Driven Decision-Making in Insurance?
At the Gartner® Data & Analytics Summit 2022, a comprehensive study surveyed 1,200+ companies across six countries and four sectors (manufacturing, automotive, finance, insurance, telecommunications). About 80% of these companies reported revenue growth post-real-time analytics implementation.
ServiceNow provides an Analytics and Reporting Solution within the FSO package. Once users install and activate it, they can:
- Set up and define data collection workflows
- Run performance analytics
- Review indicators, widgets, and dashboards
- Leverage intuitive data visualizations
- Share the dashboards with relevant stakeholders
That said, here are some ways this module fuel data-driven decision-making for insurers:
ServiceNow FSO empowers insurance companies by monitoring performance across workflows and against KPIs set for policy servicing, underwriting, and claims. This holistic approach to analysis not only helps to improve the overall customer experience but also supports improved business efficiency.
For example, insurers can monitor claim rates against the claims volume and carry out the root cause analysis for the same. They can also monitor the speed of decisions and claims processing.
FSO brings machine learning capabilities to the fore, allowing insurers to tap into the power of data analytics for predictive modeling and pattern recognition. This helps identify tendencies and patterns in insurance cases and use the insights to support future decision-making.
For example, insurers can use FSO’s analytical capabilities to provide guided and contextual recommendations to agents and customers. According to Accenture, personalized services boost an insurer’s retention rate to an incredible 81%.
By leveraging data from diverse sources, such as customer interactions, claims history, and policy preferences, insurers can tailor personalized experiences and offers. This approach leads to improved customer satisfaction, increased customer retention, and enhanced acquisition rates.
Insurers are obliged to uphold quality customer service. This is a challenge due to the complex nature of complaints and the myriad of factors that can lead to them. ServiceNow FSO’s granular analytical capabilities help in the process.
For example, insurers can review the status of the complaints (i.e., the open cases, the volume of complaints pertaining to a certain case, the time it takes on average to close a specific type of complaint across categories, etc.) and ensure that the team is addressing them in a timely manner.
This knowledge is particularly helpful in streamlining the claims management process since issues can be addressed at their source instead of being left to fester.
Continual Improvement Management
FSO empowers insurers to initiate and track operational improvements effectively. By aligning people, processes, and data, insurers can identify problem areas and uncover solutions. This data-driven approach fosters a culture of continual improvement within insurance organizations, ensuring they remain adaptable and responsive to evolving market dynamics.
A Single Insurance Data Model, a Single Platform
ServiceNow offers insurers a unified data management solution. By leveraging the insurance data model, carriers can efficiently manage configuration data throughout its lifecycle. This integration saves time and resources that would otherwise be spent on development — allowing insurers to focus on utilizing data effectively for decision-making and strategic planning.
At the end of the day, they can unify all the front, middle, and back-end processes for holistic visibility into their operations and uniform decision-making.
The Bottom Line
Altogether, by leveraging FSO, insurers can better understand their customers, enhance customer experience, and improve operational efficiency. It’s a powerful tool to ensure that your business is making informed decisions and reaching the right outcomes.
Xceltrait is a leading ServiceNow solutions provider. We help insurance organizations leverage FSO Analytics to drive measurable benefits, such as:
- Increased customer satisfaction
- Reduced costs
- Improved efficiency
- Enhanced compliance
We thrive at the intersection of technology and business. By understanding the unique needs of each insurance organization, we help them achieve their business goals through the use of ServiceNow FSO. Explore our capabilities here.