The implication of business intelligence in risk management: a case study in agricultural insurance

Abstract

The increasing data scales in today’s business sectors coupled with the necessity of risk management raise the importance of business intelligence tools as an integrated solution for the insurance industry. These tools have mostly been used to achieve effective risk management. Although methods of risk management in the insurance industry have been proposed many years ago, the research effort has primarily been focused on predictive analyses. This study aimed to investigate the role of business intelligence as a solution to illustrate its potential in risk management particularly for decision-makers in agricultural insurance. We hypothesized that this would make a preferable decision in uncertain conditions. Sample data from the online transaction process system of Iran agricultural insurance fund were preprocessed in SQL server. Multidimensional online analytical processing architecture was analyzed using Targit business intelligence tool. Our results identified financial risks that lead to a framework of controlling risk based on business intelligence in the agricultural insurance fund.