PriyaPatel
TLDR:
- Availability of data has revolutionized the insurance industry, leveling the playing field for carriers
- Shift from historic data reporting to advanced business intelligence models
The availability of data in the insurance industry has transformed how businesses operate, leading to increased competition and innovation worldwide. Christina Lucas from Guidewire points out that data has leveled the playing field for carriers, allowing them to create new products and services due to the transparency of information they now have. Initially, companies focused on reporting historic data trends, but now the industry is characterized by sophisticated models leveraging business intelligence to drive data-driven business outcomes, representing a monumental leap from traditional Excel spreadsheets to advanced technologies like large language models and Generative AI.
The integration of AI in the insurance sector has revolutionized the analysis of claims information, with the market value of AI projected to reach US$35.77 billion by 2030. Underwriting and claims have become more collaborative, creating tighter models based on emerging trends. Geopolitical events, such as the global pandemic, have also shaped the sector, challenging insurers to quantify the impact of COVID-19 and understand supply chain logistics and agricultural risks. Data-savvy talent and relevant data sourcing are crucial for leveraging data effectively, with a focus on capturing the right data for future insights.
Looking ahead, two major trends identified in data utilization within the insurance industry include tech enablement and market capabilities. Real-time data inputs and cloud-based platforms are essential for rapid decision-making, while advancements in climate modeling, sustainability efforts, and the use of blockchain in parametric insurance are driving market capabilities. Insurance leaders must focus on capturing relevant data, leveraging third-party sources, and nurturing data-savvy talent to stay ahead in the ever-evolving industry.
