In a bid to improve the pricing of products and to get better insights into customer buying habits, Australia’s largest global insurer will be pouring some $50 million into partnerships with insurtech companies across four countries.
After establishing a global data and analytics function, as well as a Group Digital Innovation Lab last year, QBE
chief executive John Neal
said this year would see the company focusing on data analytics.
“Our planning is well advanced to deliver $150 million of expense savings by the end of 2018, and some of these further savings will be invested in technology,” Neal told Australian Financial Review.
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“And for the first time in 2017 we will be investing a minimum of $50 million in partnering with insurtech companies that have a particular focus in data analytics.”
CLSA analyst Jan ver der Schalk lauded these moves, saying: “Good underwriting is all about statistical analysis: statistics are useless if data is poor.”
Neal said QBE
would be screening “several hundred” companies in Britain, the US, Israel, and Australia.
“You’ve got to be so careful because there is a lot of money available to these companies so, we’re as preoccupied that there is a business value and business opportunity in the partnership, as there is an ability to get a return on investment,” he told AFR.
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