Insurers keen to reach out more effectively to customers should consider using data analytics, according to marketing applications company Teradata.

A 2014 Teradata study showed 88% of the 152 Australian companies surveyed are using data analytics tools to analyse and make decisions but 86% of them have no plans to hire a data scientist to oversee better use of the information.

The survey formed the basis for the Teradata data analysis index in June last year.

“Insurance companies must look for ways to stand out and to engage their customers,” Teradata GM Advanced Analytics Alec Gardner said.

“Insurance organisations need to use data to understand their customers in ways that haven’t been possible before, and all of that information is probably already available within the organisation.

“Insurers just need to find new ways to access, integrate, and analyse that data for actionable insights.”

Data analytics uses raw data to draw inferences about a specific business problem or question. It can be used to uncover patterns, anomalies and other vital information.

Mr Gardner told insuranceNEWS.com.au more financial services firms “are seeing the need and desire in particular” to step up their engagement with clients.

“What we are seeing is a desire to get more behavioural data,” he said.

More than 76% of the Australian firms surveyed in the study say they are using data analytics to reduce customer service issue and complaints, while 53% want to use the information for customer insights.