The Property and Casualty Insurance Industry Outlook report said that data is the lifeblood of the insurance industry and it is growing at an exponential rate. It said that this growth should prove to be a boon for the industry but if insurers are going to win ‘the information arms race’ they will need to upgrade their data management capabilities.
“Developing strategies to better integrate and leverage existing and emerging data sources within legacy technology platforms and capabilities is proving to be a daunting challenge for many in the industry,” says Neal Baumann, Deloitte’s global insurance sector leader.
“As more and more carriers look to execute strategies to drive performance and reduce risk via leveraging data and analytics, insurers should be prepared to make the trade-offs needed to develop capabilities that they believe will provide them with strategic advantages. In some cases this might lead to the need to revisit and modify traditional business and operating models.”
The report added that, as insurers acquire more and more data, the threat of cybercrime and growing privacy issues are likely to be a growing concern for insurance company chief information officers, who will need to develop more effective risk management techniques.