Investment in data and analytics is shifting to become more predictive than reactive which could set the insurance industry up for future success.
Lambros Lambrou, a member of the Global Aon Risk Solutions operating committee, as well as CEO for the business in Australia and a member of the Pacific board of the company, said that as other industries change, and risks evolve, so the investment of the industry must do the same.
“Importantly, our investment in data and analytics is moving from a situation where we have used our investments to predict the future based on the past to a new model… as a lot of these business models have no legacy the way that you start to predict the future is less relevant to what happened in the past,” Lambrou told Insurance Business.
With insurance leaders throughout the region noting the importance of data and analytics moving forward, how the industry manages these two emerging trends will prove critical. For their part, Aon reportedly spends approximately US$350 million on data and analytics, according to the Sydney Morning Herald,
highlighting its importance to the major international broker.
Lambrou stressed that the investment in and use of data and analytics goes beyond the insurance industry as clients seek more fact-based insights into the risks that they face.
“The way we use data and analytics to inform both ourselves as an industry, and also our clients, about the relevance of our industry and help them mitigate volatility and improve performance within their firms is so, so important,” Lambrou continued.
Paul Mang, global CEO of Aon Analytics, said that data and analytics will remain a key element of the insurance industry in the future.
“Data and analytics has always been at the heart of what insurance is,” Mang told Insurance Business.
“I call insurance the original big data industry because we were looking at data, trends and history to predict the future.”
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