Our lives are busier, more complex and face more constraints and uncertainty than ever before. This is especially true for brokers and consultants, who face an ever-growing mountain of data and decisions around client offerings. Fortunately, brokers can now turn to data-enabled tools to save money, spot fraud and deliver better plans. By leveraging data, not just to describe an outcome but to take automated actions, brokers can remain competitive and offer a more personalized approach to benefits plans development.

From descriptive to predictive to prescriptive

A typical data journey begins by looking at past data to describe what happened before evolving to using data to predict what is likely to happen. It then uses this knowledge of the future to prescribe actions that will lead to the best outcomes. Benefits platforms and tools that can combine these techniques over historical and current data are key to unlocking the power of prescriptive analytics for brokers and their clients.

Predictive analytics tell us what is likely to happen next by using statical models and forecast techniques to understand the future. But without taking action and without engaging with prescriptive analytics, the value in having knowledge of the future is lost. The real power comes from using data to influence action and outcomes. Prescriptive analytics focuses on the actions we should take to increase our chances of producing the best outcomes.

A good example of the use of prescriptive analytics in the benefits industry is around prescription drug savings. Prescriptive analytics can leverage data to help spur prescription drug savings by automating communication between doctor, insurance provider, pharmacy and patient. Say a patient has been prescribed a brand name in a high tier of their insurance plan's list of drugs for a chronic condition. Benefits platforms that use prescriptive analytics can identify an equally effective alternative from a lower tier as an opportunity for savings (to both the patient and payer) and then automate the next steps and create greater ecosystem efficacy. Platforms can automatically reach out to prescribing doctors, confirm substitutions and then switch the prescription at the patient's pharmacy at their next pick-up — ultimately changing behavior for the better.