Today's insurers are carefully investing in big data initiatives such as underwriting, actuarial/product modeling and product development.
For certain applications, insurers have aggressively adopted analytics, and large insurers are adopting in marketing and claims areas. The softness of the market, along with the lower cost of hardware and software and a greater awareness among insurance executives is what seems to be driving this increased adoption rate.
According to a report from Novarica called “Analytics and Big Data at Insurers 2013,” the number of insurers actively invested in capturing, analyzing and learning from big data is growing.
With regards to actuarial/product modeling, 18 percent of insurers said thought big data was valuable; while 24 percent said they have plans to employ big data/analytics in actuarial/product modeling in the next year.
When it comes to pricing, actuarial modeling and risk analytics, 89 percent of respondents employ analytics in each of these areas. Forty percent reported significant value from analytics investments pricing, and 49 percent reported the same for actuarial modeling and risk analytics.
Big data can be a strategic benefit for today's insurers, but it comes along with professional liability risks. One major liability concern with big data is cyber security. With so much personally identifiable information (PII) stored in a centralized place, just one attack could severely impact a company's ability to stay afloat.
To ensure your business is protected from these risks, contact us today. We build custom coverage solutions designed to meet your insurance needs. Call us today at 201-847-9175 or email info@axisins.com.
Axis Insurance Services, LLC is not affiliated with Axis Insurance Company or its affiliates in any way.
DBA NJ Axis Insurance Services, LLC in California and Texas
DBA NJ Axis Insurance Agency in New York
DBA Axis Insurance Services of NJ in Illinois