Open data refers to any kind of information that can be accessible and found on the Internet. Corporates from all industries are using this type of data in order to know their customers more and better.
Managing open data allows corporates to increase data quality, monitor events and changes, and automate processes. The type, size, source, and applicability of the data can be of infinite variety.
What do we use Open Data for?
1. To improve current processes
Data quality is the first aspect we have to improve. We need to know what is the reality of our customers or potential customers in order to improve the results of our daily tasks. This is also a must before adding any complexity to our processes.
This problem is common: based on our projects, an average of 45% of insurer’s commercial customers have inaccuracies in their business activities or/and their addresses.
We are an example of this. In the image above, we can see the data we sent to the insurer when we bought a business insurance policy right after establishing our company. However, like any other business, many things have changed in only two years. The insurer has been renewing our policy without updating our data, and yet this information can be found on open data sources.
Implementing open data sources can help to update inaccuracies and outdated data in an automated way. We must know what is the reality of our customers in order to make good decisions.
1. To automate processes
Once the data we manage is adjusted to reality, process automation becomes feasible. By establishing a connection with our systems and open data sources, process automation can be applied to underwriting and renewals to reduce times and increase. A before and after example of an underwriting process for business property insurance can be seen below:
But sometimes information like opinions can be fake. How can we make sure we only use verified opinions for risk assessment?
We know that the Internet is full of trolls and an angry customer can be the worst nightmare for a business. This may be the part that causes more doubts to insurers, but there is a way around it that we can see in the example below:
We can see on the image above that Business 1 has a higher rating than Business 2. However, it only received 7 opinions and all of them were published in only one day. Therefore, the number of opinions and dates have to be considered when giving importance to this information.
In this case, opinions will not be considered for Business 1, which means it is either a young business or clients do not like to share opinions about it. The result we will get in this comparison is that Business 2 is strong, popular, and has a good rating.