The data evolution
There are 2.5 quintillion bytes of data created every day at our current pace, and that pace is accelerating with the growth of the Internet of Things (IoT).
Even the most sophisticated systems have historically required at least some level of manual input, but now, almost all devices carry cheap, small sensors that can monitor and control almost everything we do whether that be advanced machinery, personal Fitbits or fridges.
Connected to wireless networks, these devices collect, store and send data to central hubs from which data scientists can access key trends and insights.
As a data-led industry, the insurance sector is benefiting from the emergence of Big Data. By gaining valuable insights on customer behaviours, insurers are better at calculating risk and pricing products.
Data driven success
Historically, insurers have struggled to turn their data into tangible insights. Often data capture and storage has been a responsibility viewed solely for the IT department to deal with, and at best, data storage is siloed or messy. The problem is exacerbated by the fact that most insurers have grown through mergers and acquisitions, leading to disparate legacy systems, multiple data sources and no single version of the truth.
Now, with such a vast amount of data available, machine learning and predictive analytics are being used to mine and extract the insights in order to provide meaningful MI. By applying these types of technologies, insurers can easily access data to gain the information they need to find new opportunities, drive efficiency and identify the needs of their most important distribution channels, which has very positive implications for the broker market.
The insurance industry is in a state of constant transformation, and that looks unlikely to change any time soon. The sheer volume of data being created means that providers and distributors alike now know far more about their customers behaviours. Whether its obvious or not, the business couldnt survive without this knowledge. Those intermediaries and insurers that are best able to turn data into actionable insight will be best-placed to succeed in the new world.
If you would like to hear more about how you can turn your data into actionable insights, get in touch with [email protected]