AI & DATA
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“ Big Data has become one of the most important factors in the disruptive and innovative potential of InsurTech over the last 10 years ”
to enabling this improved service , yet Big Data is often more difficult to acquire for insurance companies than others . “ Because their interaction with customers is relatively infrequent , insurers do not have rich transactional data to work from — as banks do , for example , through credit card and account transactions ,” said BCG in its article ‘ Big Data : The Next Big Thing for Insurers ?’. “ In addition , the data that insurers do have is typically low consistency , the result of siloedinformation capture and management .” Furthermore , KPMG also points out in ‘ Data is the new oil – and the price is going up ’ that “ although there is strong growth in the adoption of wearable tech that is influencing the healthcare sector , consumers are generally split on the issue of sharing personal and behavioural data . Insurers must tackle the ethical questions that arise about how they will use this data if they want to avoid a potential backlash now – or in the future – against big data from the consumer prompted or reinforced by regulators .”
As such , InsurTechs must be innovative in the methods they use for unlocking value in the data available to them . Sometimes , this value is derived not strictly from ‘ insights ’ but rather in its use as the engine for driving operational optimisation , personalisation and smart analytics