Data Opportunities and Challenges within the Insurance Industry

Cem Baris 27.03.2018

Big Data from sources such as CRM and social media will bring a wide variety of opportunities to many sectors; one in particular that could benefit is the insurance industry.

How is Big Data going to play a role in insurance?

By increased insight and productivity that Big Data can bring, there is the chance that revenue can be increased and cost base reduced.

To gain true value from Big Data, it is of huge importance that insurers manage and control points that are in line with business priorities. The main challenge that is obstructing insurance companies benefiting from the availability of so much data is finding the right ways to exploit both structured and unstructured data.

If insurers want to make the most of Big Data, they need to ensure they have systems in place to cope with the different forms of data across 3 areas:

  • Volume - the amount of data available has dramatically increased and insurance companies must have systems to cope with the vast amounts
  • Variety - with more unstructured data, firms face a challenge of finding a way to assess which data will provide the greatest value
  • Velocity - open source technology allows insurers to acquire, process and exploit data within a matter of seconds

Smart conversion of data into actionable information

The most important requirement is to react quickly to data received. But those in the insurance industry that can implement systems in the appropriate places to cope with the adjusted volume, variety and velocity of Big Data can gain from it in the following areas:

  • Fraud - Big Data could give insurers the ability to verify claims and make decisions faster by combining and analysing data from CRM and social media
  • Smarter Finance - combining structural internal data with unstructured external data will allow for daily automatic adjustments to be made by verifiable qualitative analysis
  • Telematics - the ‘pay as you drive’ (in car insurance) model provides the opportunity for insurers to understand driving of individuals, providing rich data which can allow for more accurate pricing of policies
  • Claims - Big Data provides insight into whether a claim is valid and whether it should be processed quickly, resulting in cheaper costs for the insurer

Customer retention is another reason that insurance companies can benefit from these data opportunities. Customers have buy in of Big Data being implemented in insurance; if they can receive solid insight into how they could lower their premiums, they will be more likely to stay on with the insurer that offers the capability.

London Business Analytics panel discussion: Data Opportunities and Challenges

Tonight, the 27th of March, The London Business Analytics is hosting an interesting panel discussion with several panelists presenting various Data Opportunities and Challenges across a number of sectors.

Ali Al-Kafaji - Insurance

  • Insurance and the effect the telematics will have on car insurance premiums

Ali Ettefaghian - Health

  • Issues of data in health - the great potential of it but problems with data quality and the need to get privacy issues correct

Bala Madhusoodhanan - Retail

Noor Din - Education

  • How people can learn the skills to pivot into a data science career

Steve Raddon - Project Management

  • Challenge of capturing, analysing and visualising portfolio project management data
  • Aligning project plans and deliverables with the underlying business benefits, metrics and operating model transitions, supported by data and BI solutions

Tamsin Harriman - Finance

  • Opportunities for automation and interactive/self-service reporting
  • Importance of good data quality/data governance in a growing company
  • Trade-off between self service reporting and having a ‘single source of the truth’ for data

If you would like to find out any more about the event, please feel free to contact me or a member of the team.

Don’t forget to sign up to our future events on: https://www.meetup.com/London-Business-Analytics-Group/

Cem Baris's picture
Director | Information Technology & Sales
cbaris@morganmckinley.co.uk