Business intelligence and analytics are top priorities for insurers, and their capabilities, which have grown in importance to industry in recent years. But the carriers have fewer “grand plans” for big data than they did in 2013, the last time Novarica polled CIOs on this topic.
So concludes Novarica, a provider of technology strategy research, advisory services and consulting, in a report that examines the big data capabilities of U.S. insurers — including providers of P&C, life and annuity products — and the benefits they’ve derived from the technology. The report is based on results a survey of 58 insurer CIO members of the Novarica Insurance Technology Research Council, conducted in April 2015.
“When it comes to big data, insurers are engaging in a limited manner, most commonly leveraging consumer, business and geospatial data for benefits in actuarial/product modeling and underwriting,” the report states. “Few insurers have invested in the specialized infrastructure required to manage big data, but about a quarter of those who haven’t yet, are planning to do so within 12 months.
The report defines big data as internal and external data, structured and unstructured, typically collected in enormous volumes at a rapid speed. It is generally characterized by the “3 V’s” — Volume, Velocity and Variety — and is often too large to be processed by traditional technology.