7 characteristics of insurance companies

Insurance companies are older than you can imagine; their creation dates back to the Ancient Age since they sought to protect the personal interests and interests of existing communities, but what is their profile like today?

First, we must define them. Insurance companies are organizations that provide financial protection against potential losses, such as accidents, illnesses, or property damage. They do this by selling insurance policies to individuals and businesses, which provide a specified amount of coverage in the event of a loss. Insurance companies make money by collecting premiums from policyholders, and by investing those premiums in various financial instruments.

Know the 7 keys of insurers

1.- Its activity is focused on an operation to accumulate wealth through the insured’s contribution and thus guarantee financial support in an adverse economic event.

2.- The principle of solidarity in insurance refers to the idea that the insurance risks of a group of individuals or entities are shared among all group members, regardless of their individual risk profile. The principle of solidarity is an important aspect of insurance systems as it ensures that all members of the group have access to protection, regardless of their individual circumstances, and it also helps to spread the risk across the group, which can make insurance more affordable for everyone

3.- Insurance companies can be of different types depending on their legal constitution: mutual companies, corporations, cooperatives, and social security mutuals.

4.- They can operate in one or multiple branches as long as they comply with the necessary authorization from the regulatory authority. Some of them are:

  • Life insurance: provides financial protection for the policyholder’s beneficiaries in the event of the policyholder’s death.
  • Health insurance: provides financial protection for medical expenses, including doctor visits, hospital stays, and prescription drugs.
  • Property and casualty insurance: provides financial protection for damage or loss of property, such as homes, cars, and businesses. This includes liability insurance, which covers third-party claims for damages.
  • Auto insurance: provides financial protection for damage to or loss of vehicles, as well as liability coverage for injuries or damage that the policyholder may cause to other people or their property while operating a vehicle.

5.- They must have sufficient financial resources and solvency, so the legislation imposes many restrictions on them.

6.- Natural persons cannot carry out the activity since legal regulations seek permanence and stability in this sector.

7.- They are constantly regulated to allow the highest level of trust to be reflected between the insured and investors.

Needed transformation

Insurance companies have a long history. Although they have not changed much since their creation, nowadays, thanks to new technologies, they are starting to understand the importance of transforming and innovating.

At LISA we want to support insurance companies in this journey, using cutting edge technology to improve their operations. If you want to know more about how we are helping carriers worldwide deliver a better, faster and simpler claims experience, contact us by clicking here.


Discover the value of NPS in the Insurance Companies

Before explaining in depth the topic to be presented, it is good that you know the meaning of the acronym NPS or «Net promoter score», which refers to a quantitative indicator, which was developed to measure customer loyalty, in the year 1993, by Fred Reichheld.

The NPS is measured through a scale that goes from 1 to 10, from 0-6 is negative (detractors), 7-8 neutral (passive), 9-10 positive (promoter). It is important to clarify that the Net promoter score can be enriched with valuable comments, which can help the company’s interaction methods with the client.

Its value

The customer experience can be measured and improved thanks to their analysis, also, the data will always be important, since customer loyalty is one of the factors that most influences the growth of companies. Based on the above, if the insurance company has a positive NPS (9-10), it means that there are people recommending it, which, on the contrary, is located within 0-8 within the scale.

Customer loyalty is crucial for any industry, because in a competitive environment like today, it is easy to replicate strategies, products and even prices, but really making a difference and denoting it, is something that companies continue to seek to thus achieving in a sustainable way the enhancement of its growth and profitability over time.

At LISA we settle claims and delight policyholders with a high-level experience, lowering operational cost and increasing the level of customer satisfaction. Contact us!


Protect yourself! Learn how to prevent fraudulent activities

The Frauds has always been a problem in the insurance companies, since irregular collections have generated millions of losses, favoring a reduction in their operating costs to maintain profitability.

This problem has led to the loss of valuable resources, which could be used to prevent and identify activities associated with fraud. The challenge for insurers is based on improving the skills associated with detecting irregularities using technologies such as Big data and its analysis.

Through a survey conducted in 2014 of various insurers, it was revealed that in seven out of ten insurance companies, it was stated that claims had increased in three years. This, further supports the importance of preventing fraud.

How can you prevent them?

1.- Using artificial intelligence to find patterns: with this the detection of scammers will be fast because it processes the information, drawing conclusions.

2.- Analyzing fraud networks: through data analysis, helping to detect chains of organized actors for fraudulent collections.

3.- Using business rules adjusted to customer behavior: thanks to this, previously made (fraudulent) claims were compared in the various types of insurance, thus allowing the generation of alerts for a new claim similar to those historically stored.

Thanks to technology, fraud can be prevented through data analysis, which will allow the protection of insurance companies’ resources. The digitization of services has made companies more vulnerable, which is why it will be a priority to avoid fraud to guarantee the monetary care of insurers and their profitability.

Through our service, LISA Gateway, you will be able to manage and manage the integrated fraud management in each of the transactions. For more information about the service, contact us by clicking here.


Machine Learning in Insurance

Currently 84% of large companies use Artificial Intelligence and estimate that by 2020 the total number of companies will adopt Machine Learning as a user experience optimizer (UX).

In LISA Insurtech, this is one of our biggest challenges, to delight our clients (Insurers) and their clients (Insured), that is why we have a specialized area in UX, the previous thing since according to a study carried out by Tata Consultancy Services ( TCS) companies that have already invested in Artificial Intelligence, are now seeing the fruits, since they have increased their profits by 25% and reduced their costs by 20%.

Machine Learning is one of the applications of AI that gives systems the ability to automatically learn and improve the experience without having to be programmed, in addition to controlling at the top of the evaluation that avoid late analysis.

One of the main objectives of Machine Learning is to know in detail the behavior of users, and in this way to detect how to improve the user experience (UX or User Experience). In this article we will talk about 2 ways in which Machine Learning focuses on optimizing the user experience.

– Predictive data analysis

The recommendation systems based on Machine Learning algorithms offer a beneficial value for the users and, in the case of the insurance industry, they can predict their attrition rate, Fraud, purchase intention and others.

On the other hand, predictive analyzes help us to better understand the needs of users, which allows us to develop different products and services as it allows us to customize the offer to specific needs.

– Learn from the results

Machine Learning allows us to make changes in real time in the actions of the insured and anticipate their needs. On the other hand, learning from the results will allow us to grow and develop skills that will benefit us in the future.

Thanks to Machine Learning we can plan the company’s resources, develop predictive systems on customer behavior and customize communications, generating greater value in users.

In this era, technology is responsible for optimizing processes. What do you expect to integrate Machine Learning as a user experience optimizer (UX) to your company and increase your profits and reduce your costs?

In LISA we use this and other high-level technologies to add value to the industry, thanks to this type of tools we reduce the operating cost of claims management by 60%, do you want to know more ?, Contact us!