Insurers intend to invest more heavily in data and analytics in the coming year, but widespread adoption of predictive methods are the key to making better decisions across the organization, according to a new report from Celent and The Institutes.
“Within the insurance industry, the big data revolution is already underway,” said Suzanne Kinsler, MBA, research analyst at The Institutes and author of The Institutes’ survey. “Organizations have a responsibility to invest in and support employee knowledge and training in analyzing big data and modeling outcomes, not only to bridge traditional insurance practices and data science, but also to keep up with their competitors.”
Celent worked with The Institutes on a survey of over 2,000 insurer representatives. They found that more than half of insurance chief information officers expected “significant” investment in predictive analytics and business intelligence to assist in underwriting, claims, and more.
The survey revealed a disconnect between interest in data analytics and actual application by insurance professionals. Eighty percent of respondents said they would have some level of interest in education about the opportunities analytics could provide their business.
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Erin is the managing editor of Advisen’s Front Page News. She has been covering property-casualty insurance since 2000. Previously, Erin served as editor-in-chief of The Standard, New England’s Insurance Weekly. Erin is based in Boston, Mass. Contact Erin at [email protected].
