The advisory firm’s report said insurers are pushing these technologies into areas other than underwriting and utilising solutions in product development and marketing.
The study found that 83% of personal and commercial insurers will spend more on these technologies between 2013 and 2015. It added that 16% will increase their budgets for data analytics by more than 10%.
“There is no question that analytics projects are viewed as game-changers, but insurers also see the need to focus on improving and enhancing their data to fully capitalise on the power of analytics,” the SMA report said.
“As most in the industry would guess, underwriting is still the number one business area for analytics investment. However, we are also seeing that spending will increase in product development, marketing, and some other areas. Two leading trends revealed in the 2012 study continue to be major players this year: increased spending on data and analytics, and broader usage of analytics beyond the traditional risk-centric applications.”
A separate survey by the Economist Intelligence Unit has found that the financial services sector is among the industries best prepared for the ‘data age’. Companies in the manufacturing and retail sectors were found to have the least developed data management strategies.