As the highly competitive insurance industry moves more towards tailoring products for individual consumers, secure and advanced analytics on rich data is fast becoming a table stakes business requirement.
For insurers, the IXUP software platform ensures you can secure the detailed insights you need to fine-tune actuarial computations by analysing multiple data sources in a compliant, governed and encrypted software environment. This effectively removes the risk of data breach and misuse as analysis is performed on encrypted data and never in the clear.
By ensuring that ciphers (secret and irreversible representations of the original data) are analysed rather than the data itself – and the key to the encryption always remains in the hands of the data owner – there is no need to remove any personally identifiable information from the insurance industry data. At no stage is sensitive information seen, shared, or revealed – which meets increasingly stringent requirements around privacy and security. Our suite of encryption tools – which incorporates technologies such as homomorphic encryption – allows users to perform advanced analytics on multiple encrypted data streams to deliver granular and refined insights.
These are the insights that allow insurance companies to manufacture, price, and underwrite highly tailored products across the spectrum – from motor and household, to SMEs and big-end-of-town commercial.
There are other benefits too. Risk can be calculated more accurately, making it easier for companies to manage their claims ratios. Fraud is more easily detected when PII data is safely and responsibly analysed. Products designed with great specificity are less susceptible to competitive pricing pressures, and policyholders can find cover that best suits their individual needs.
Insurance companies empowered by this level of data analytics have an edge over competitors who have to de-identify information in order to use it, and as a result, achieve a less optimal outcome.
Being able to extract every variable from new data trends is becoming more important given the unpredictability and disruption from factors like climate change, artificial intelligence, and increasing longevity. Those companies that appreciate the competitive advantage this new information holds, will also recognise the value of keeping it safe and secure.