October 27, 2014 | Written by: Wyatt Urmey
Categorized: Risk & Analytics
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‘Nothing is certain but death and taxes…and because of the first one, the need for insurance is certain as well.’
Insurance doesn’t often get the front-stage focus that other components of Financial Services gets, and part of it is the relative stability and certainty. Insurance, by the nature of its business, is there to create more certainty. Now, with a heightened focus on analytics and big data, it can perhaps provide even more to customers. In fact, there is a new vista opening in front of insurance — one that could be truly explored for the benefit of the industry and the insured.
The growth in analytics is indeed advancing in insurance, and it remains one of the industries most interested in the prospects of analytics and Big Data, with investment proportions increasing by 10% or more, in roughly 34% or more of providers. Much of this investment though goes to the standardization, cleansing and improvement of data, and data-processes, to be able to make faster and smarter decisions. The step beyond this is how to combine machine and social data, analyze and reuse all this data to offer improved products and services to its existing and new customers. Of these, I think the social data offers green fields of innovation for insurance.
At Insight2014, we’ll see more of the newest use cases and innovations on the growth of Big Data and analytics. One of the key areas of interest is exploration within insurance in areas of new value added services. Insurance is a business of data and what the industry has at its disposal to make decisions and assess risks is changing faster than ever. Also, what the insurance industry once ‘cast off’ as data byproduct is now considered more and more to be critical to increasing business with customers.
As two examples, at Insight2014 this week in Las Vegas, we’ll learn more on two cases in particular, and you can follow some of it on live stream:
- Rimac Segura will speak in the Business and Industry Leadership Forum, among other representatives of key Financial Services brands. Rimac is working to use analytics to improve its claims process and optimize other key processes. We’ll also get a peak at newly available industry and analytics data on how insurance, as well as other industries are coping with all this data.
- USAA will speak at Insight2014, too, and touch on their innovations with Watson as there is great interest in how they are using the technology to improve the lives of servicemen and servicewomen.
Last year, there was the great example of Nationwide Insurance which presented at the analytics and big data conference on the importance of analytics, and how it helped its customers. These will be interesting stories that share the possibilities opening to the insurance industry – an industry that is already traveling at the speed of data.