INFORMED INSURANCE
INSURTECH
" Every time you buy something with your contactless debit card ? Data . Every time you read an article online ? Data . Every time you stream a song , movie or podcast ? Data , data , data "
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— Bernard Marr , Forbes writer and business analyst
Nowhere is this more true than in the insurance industry .
INFORMED INSURANCE
“ Insurtech is having a transformative impact upon the global insurance market — the role of data is absolutely central to the entire project ,” observes a recent report KPMG . “ Data is not simply the facilitator for better underwriting and keener pricing , but is the very DNA of the 21stcentury connected organisation .”
The insurance industry is no stranger to data . In fact , it ’ s probably been drawing insights from large data sets for longer than any other sector . However , this may end up being more of a hindrance than a help when it comes to the next step of its evolution into an increasingly digital age .
Traditionally , insurers have relied on mathematically-skilled actuaries crunching complex sets of numbers to understand risk and write policies accordingly . “ Over the past 15 years , however , revolutionary advances in computing technology and the explosion of new digital data sources have expanded and reinvented the core disciplines of insurers ,” asserts global consultancy McKinsey ’ s report Unleashing the Value of Advanced Analytics in Insurance . “ Today ’ s advanced analytics in insurance push far beyond the boundaries of traditional actuarial science .”
Big Data is completely revolutionising core aspects of the insurance sector . Let ’ s take a look at the five main areas of insurance that Big Data analytics is transforming :
MAY 2020