19/Jul/2019
Big Data analysis and the insurance industry would seem to be made for each other. Big Data mining and interpreting the findings should yield all manner of insight into every aspect of how businesses and individuals behave and interact. In her third blog piece, Silvi Wompa Sinclair, Insurance Business Director, CyNation, considers the opportunities offered by Big Data and Artificial Intelligence (AI).
“There is a lot of talk about the potential for using Big Data/AI,” says Silvi (right), “however, even now many of the processes – at least in the London insurance market – are very manual and analogue in their approaches. Even if you have a lot of data and you can see the value in that data, you still have to make your processes capable of taking this data into account: because it’s so vast.
“For now, I think we are still in trial and error land, where many insurers are experimenting with how we can improve our various processes, be they claims or underwriting or distribution, to be more digital. I’m afraid that actually making use of big data in underwriting is still a long way off.
“It’s also worth pointing out that much of the industry isn’t incentivised to change, mainly because they have made quite a bit of money from not doing very much!
“A huge performance improvement programme is taking place within Lloyds of London. Lloyds and the market place are challenging a lot of the constituent parts simply to improve their profitability, which has been pretty horrendous. At present no stone is being left unturned.
“Obviously underwriting risk is currently at the core of everything that the marketplace does. So if you can turn that up a few notches you will make a lot more money in coming years.”
Take a look at Silvi’s previous blogs via the links. She considers if cyber crime and insurance might actually represent a growth opportunity and looks to the future of the insurance industry.
