Every day , the world seems to move a little faster as technological advances connect businesses and people more efficiently . For the most part , it goes on unnoticed . We barely register the fact that our broadband connections are now so swift that instant video streaming is an expectation , not a luxury .

However , the speed at which data is being gathered these days and the methods through with it is being collected , are increasing in both efficiency and number . Currently , according to Gartner , there are approximately 25 billion IoT devices in operation globally . By 2025 , the IoT will comprise of more than 64 billion .

As 5G continues its worldwide roll-out and connectivity , as well as the speed and volume of data transfer grows , so will the amounts of data collected , and with it potentially , the issue of data gravity - a term given to the massive glut of information that is collected electronically by companies through the IoT , which is then stored , but not aggregated , and therefore , produces no useful insights .

Data gravity management According to a number of reports , data gravity in the insurance industry is predicted to double in volume annually by 2024 . This presents all companies with the unique challenge of handling vast swathes of information that on one hand , can provide them with essential KYC insights , but at the same time , in the age of cybersecurity , become a legal liability .

David Sexton , VP & Head of Insurance Practice at global technology solutions giant , Cognizant , says advances in data availability due to several criteria such as the explosion of

InsurTech Magazine March 2022 | Page 63

A look at the challenges faced by the insurance industry as Big Data gets bigger

“ THERE IS ALSO SIGNIFICANT

UPFRONT INVESTMENT

NEEDED ( TECHNICAL DEBT )

TO MOVE [ COMPANIES ] TO CLOUD / DIGITAL

TRANSFORMATION ”