The analyst said analytics tools were critical for improving and driving growth but deployment was more focused on pricing and catastrophe models. Other key project areas taking priority ahead of customers included financial management, underwriting profitability analysis and product profitability analysis.
“While these top five areas are not surprising – perhaps they are even predictable – it is telling that none of the top five include any analytics related to customers, such as market segmentation, prospect identification, customer lifetime value, or marketing campaign effectiveness,” said Mark Breading, chief research officer at SMA.
But he added: “Analytics has been used less extensively for customers, marketing, and distribution, but this is changing rapidly due to the customer experience trend in the industry.”
SMA’s research also found that the percentage of insurers deploying business intelligence capabilities on an enterprise-wide basis was growing but it still remains very small. For example, it said only 5% of P&C insurers have enterprise-wide usage of dashboards.
Breading said: “The industry is now beginning to move into the era of enterprise-wide BI and analytics. The emergence of chief data officer and chief analytics officer roles, along with other new professional roles in this area, signals a shift toward managing data, BI, analytics at the enterprise level.”