The UK insurance industry is making big data a strategic priority in 2016.
Research commissioned from censuswide by data warehousing company Teradata has found that 82% of UK insurance companies with more than £500m turnover are prioritising big data strategies in 2016.
The survey polled 300 senior decision makers from the insurance industry, split evenly between the UK, France and Germany.
In the UK, 42 respondents were from companies with turnover between
£50m and £500m and 22 from companies with turnover of £500m or more.
Among the smaller UK-based firms, a minority of 46% are making big data a priority.
Some 73% of the larger firms are using big data to increase premiums by tackling underwriting fraud.
Large French and German firms are ahead of the UK when it comes to
what the survey calls "full deployment of customer data". On average,
76% of the French and Germans do this, while 63% of the British do.
The survey also looked at internet of things (IoT) data.
Here, the British were ahead in their use of IoT data, such as
telematics in car insurance. Three quarters of UK insurers pronounced
themselves “very well equipped” to exploit this.
Lesley Winrow, head of insurance, Teradata UK and Ireland said: “It
is reassuring to see that UK insurers have grasped just how crucial IoT
data will be. However, it is time for smaller UK firms to follow suit.
As insurers develop their big data projects, they will understand how
they can use insights to differentiate themselves from the competition
on more than just pricing”.
“Insurers who don’t have an advanced big data strategy are depriving
themselves of the significant revenue-boosting capability to make far
more personalised offers that will be more engaging and compelling to
individual consumers.”
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