The development of big data and analytics technologies has grown significant across all industries in recent years. The technology analyst Gartner recently predicted that 73% of all organisations will have invested, or plan to invest, in big data over the next two years.
The latest study, release by Insurance industry analyst SMA, claims insurance is no different and that there is a clear desire to exploit the potential of large tracts of digital data. It found that 25% insurers are now investing in big data, up from 9% in 2012.
Mark Breading, partner at SMA, said: “What is the result of all this activity? What kind of business problems and projects are insurers pursuing with big data approaches? It is not just a few uses cases, like pricing or claims fraud. There are at least 40-50 different types of problems that are being addressed with big data – or at least insurers have high expectations that big data will address these problems in a new way.
“There are the projects that you would expect – for catastrophe modelling and improving risk selection, underwriting and pricing. But there are also many new projects that are designed to understand more about customers and producers in order to improve sales and service.”