“ In today ’ s competitive market , insurers must be able to collect , process , store and analyse all of their data ,” Royles says . “ Regardless of whether it is structured ( age , location , asset value ) or unstructured ( images of burglaries or car accidents , voice recordings ); whether it lives at the edge , in a data centre , public cloud or a hybrid cloud , data can provide insight .”
He continues that insurers can then use that data to apply machine learning ( ML ), advanced analytics and artificial intelligence ( AI ), as well as identify patterns , detect anomalies and assess risk more accurately .
But Cognizant ’ s David Sexton argues that restrictive regulation is preventing insurers from embracing innovation fully when it comes to their customers ’ data : “ 96 % of insurance executives responding to Cognizant ’ s survey indicated that cloud computing was delivering strategic value to their business , whilst 84 % shared the same belief about AI and ML ,” he says .
“ However , the use of consumer data is still heavily regulated , particularly when it comes to what is permissible when measuring and identifying an individual ’ s risk rating . The need to tackle and comply with these current and emerging regulations is putting significant pressure on incumbent insurers to ensure their data security , consumer protection , and sustainability solutions and initiatives meet regulatory expectations . In turn , this is reducing the speed at which insurers can transform their approach to using their data .”