A new report commissioned by Equisoft and conducted by Celent has looked into how North American insurers are creating value from the data they gather – and it turns out that most carriers have a clear understanding that the data they collect can be turned into valuable assets.
The research was conducted with CIOs and other executives at large-and mid-sized North American carriers that offer life, annuities, group and voluntary insurance products.
The key findings of the report include:
- Although giving customers more of what they want matters, many respondents indicated that knowing how to price for those offers optimizes business when things scale up.
- 91% of carriers surveyed said they are prioritizing the use of data and analytic technologies to inform decisions on pricing.
- The building of actuarial pricing models is where most of the respondents said they are finding that data is creating the most value for their organizations.
The report also highlighted that higher customer expectations for modern digital experiences are “segmenting the marketplace between savvy companies and lagging companies.” This trend establishes a strategic imperative for insurers to become more data-driven and to generate more value from their data through digitalization, Celent reported.
"The volume of data collected by insurers is increasing every second and deriving value from that data has become a hot topic and one that many carriers are grappling with," said Equisoft USA senior vice president Mark DePhillips. "Our goal with this study is to provide insurers with practical insights on what their peers are doing with their data today, and help uncover what are the quick wins, how they can actually get value from their data right now."
"Companies of all sizes are placing their greatest priority on data management, business intelligence, and analytics/AI," added Celent senior analyst, data and advanced analytics for the Americas Marty Ellingsworth. They have more data than ever, from extensive digital transformations and integrations with various data sources, and they understand that turning this data into more valuable assets is key to sustainable competitiveness where price, ease of doing business and peace of mind matter."