Building New Data Engines for Insurers
The best engines cover the entire data life cycle—from sourcing and analysis to integration into decision making.Read the article
Analytic innovation––predictive and prescriptive analytics of big data, artificial intelligence, machine learning, and optimization––is conquering the world, and the insurance industry. That’s a good thing.
Data is the lifeblood of insurance, providing increased insight into risk so companies can better select which risks to write and at what price. There isn’t a single insurance company that won’t be more successful if it makes the most of data and analytics, but most have barely begun to scratch the surface of the opportunities available.
In today’s market, anyone can obtain vast amounts of data and buy the latest analytics tools, but new technologies alone don’t bring competitive advantage—just as underwriter experience is no longer adequate. It is the combination of the two that brings the most insight—human judgment combined with high-tech analytics: a bionic underwriter.
Further, insurers can benefit in two primary ways from the increasing accessibility of artificial-intelligence solutions, such as machine learning and natural language processing (NLP):